MILAN (AP) — Fiat Industrial, the Italian maker of trucks, farm and construction vehicles, has reported a 15-percent drop in fourth-quarter profits due to weak results in its agriculture and construction business.
Fiat Industrial SpA, which spun off from Fiat Group last year, said Wednesday net profit less minority interests for the quarter was euro123 million ($162 million), down from euro146 million a year earlier.
Fiat Industrial comprises CNH farm and construction vehicles, Iveco trucks and related powertrain businesses.
The CNH agriculture and construction equipment business, which is 89 percent controlled by Fiat Industrial, earlier reported an 8-percent decrease in quarterly profits.
Revenue for the quarter was euro6.8 billion, up 14 percent from euro5.9 billion a year earlier.
And trading profit — or earnings before interest, taxes and one-time items — rose 34 percent to euro395 million from euro294 million.
For the year, Fiat Industrial reported an 83 percent increase in net profit to euro624 million from euro341 million. That came in below the consensus of analysts polled by FactSet, who forecast euro735 million. Full-year revenues were up 14 percent to euro24 billion from euro21 billion a year earlier on improved sales of agriculture equipment, higher truck deliveries in Latin America and some European markets and higher powertrain sales.
The company announced guidance of euro900 million for net income on revenues of about euro25 billion in 2012. It forecast a trading profit of euro1.9 billion to euro2.1 billion, and net industrial debt of euro1 billion to euro1.2 billion.