Detroit | Reuters – Tractor and trucks maker CNH Industrial expects operating profit of its industrial activities to rise by more than 1.6 times to US$3.4 billion in 2018, boosted by new product launches and expansion in emerging markets.
In a presentation of its 2014-18 industrial plan, the company said it would invest $11.7 billion over the five years in new product launches and research and development to grow net sales of its construction, agriculture and commercial machinery to a total of $38 billion by 2018 (all figures US$).
The group, created last year from the merger of Fiat Industrial and its U.S. unit CNH, said it sees its net industrial cash position at $500 million by 2018, while available liquidity will be maintained at above $6 billion throughout the duration of the plan.
The company expects to pay a dividend of 30 per cent of net income throughout the plan. Net income is expected to rise 2.7 times to $2.2 billion in 2018.
– Reporting for Reuters by Agnieszka Flak.