Iveco: revenues declining however monetary prospects confirmed | EUROtoday

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Iveco closed the third quarter with consolidated revenues of three.4 billion euros in comparison with 3.7 billion euros. Adjusted internet revenue is 106 million euros, up 10 million euros in comparison with the identical interval of 2023. The firm confirms its 2024 monetary targets with internet revenues down 4%, free money move between 350 and 400 million euros, adjusted ebit between 920 and 970 million euros.

Registrations

The firm that produces business automobiles and buses, managed by Exor, confirms the forecast for the entire of 2024 in Europe of 300 thousand registrations for heavy automobiles. The market estimate for heavy automobiles in Europe in 2025 is between 280 and 290 thousand registrations, “a sign of stabilization in demand”. For medium-sized automobiles, the corporate expects market volumes to say no barely in comparison with 2024. For gentle automobiles, the expectation of European demand is “a fundamentally flat market compared to 2024”.

Financial efficiency

In the third quarter of 2024 the monetary efficiency of Iveco Group – explains CEO Olof Persson – «was strong, persevering with to use higher costs and because of diligent price administration, elements which counterbalanced the anticipated influence on volumes in a few of the sectors wherein we function”. Adjusted EBIT margin from industrial operations stood at 5%, 30 basis points lower than our all-time high in the third quarter of 2023. Free cash flow performance improved by €56 million compared to the same period last year , due to a planned lower absorption of working capital and the partial recovery of the one-off impact of the second quarter of 2024, linked to the launch of the new Model Year 2024.

In the quarter, commercial vehicle market volumes in Europe (excluding the UK and Ireland) were, as expected, resilient for light vehicles and declining for heavy vehicles and buses. Market volumes in Latin America recorded double-digit growth across all segments.

Reduced total operating expense

Persson explains that «to become increasingly agile in reacting promptly to the cyclical nature of our sector and lower the break-even point of profitability» from 2025 Iveco will accelerate the implementation of the Efficiency Program, and will review the priority of some of the investments, reducing spending fully operational “with out producing impacts on our basic product improvement plan”.