Fiat Industrial fourth-quarter profit report missed analysts’ estimations.
Fit Industrial reported its net income up 20% to 148 million euro from 123 million in 2011, compared with the analysts’ estimation of less than the 222.7 million-euro. The company’s sale also increased 2.8% to 7.01 billion euro. The drop was caused by the fact that during December demand for commercial vehicles fell to the lowest level since October 2009.
“The only meaningful deviation against consensus is the higher net debt level, ” said David Arnold, an automotive specialist at Credit Suisse in London. At the same time, investors can “take some comfort from a higher than expected dividend.”
The company’s sales forecast for 2013 is about 27 billion euro and it expects its debt to be between 1.1 billion euro and 1.4 billion euro, slightly lower compared with the 1.64 billion at the end of last year, but above analysts’ estimation of 795 billion euro. Fiat Industrial said that the fourth-quarter trading profit increased to 438 million euro thanks to its agricultural unit CNH strong performance, with sales up 15.5% to 16.0 billion euro.
“Solid global demand for agricultural equipment more than offset the negative effects of the more difficult trading conditions in the construction equipment segment,” the company said in a statement.