MILAN (Reuters) -Agricultural and construction machine maker CNH Industrial said on Tuesday its operating profit rose 9% in the first quarter as demand remained healthy despite headwinds including war in Ukraine and higher energy costs.
The company said its adjusted earnings before interest and tax (EBIT) for industrial activities stood at $429 million in the January-March period, in its first set of results after spinning off Iveco Group.
That topped a $391 million forecast in an analyst poll compiled by Reuters.
“Order books remain exceptionally strong, up almost 40% in agriculture and 80% in construction,” Chief Executive Scott Wine said in a statement, confirming full-year forecasts the group had previously released.
CNH added, however, it took a $71 million hit in the quarter due to the suspension of its Russian operations, including for asset writedowns.
It also saw negative cash flow generation from industrial activities of $1.059 billion, as “critical supply chain disruptions” constrained its ability to ship finished goods.
“Logistics pressures and semiconductor shortages, which are not unique to CNH Industrial, are expected to remain a headwind through the year, but I am confident in our team’s ability to navigate the current environment,” Wine said.
Milan-listed shares in CNH extended gains after results and were up 2.8% at 1320 GMT, outperforming a 1% rise for Italy’s blue-chip index.
At the beginning of the year, CNH completed the separation of its truck, bus and engine businesses, now listed under Iveco Group.
(Reporting by Giulio Piovaccari Editing by Cristina Carlevaro and Mark Potter)
