The better than expected accounts despite the pandemic, the possible sale of Iveco and the return to the dividend are three good news for investors of Cnh Industrial, the company in the Agnelli galaxy which, after the publication of the accounts, is among the best stocks on the stock exchange. In an already triumphant session for the Ftse Mib, driven by the position of Mario Draghi, Cnh gains almost 3% in mid-afternoon, around 11,6 euros per share. The group closed the fourth quarter with a net profit that rose by 56% to 187 million euros, beyond expectations, with revenues rising by 10% to 8,5 billion, again above estimates. Revenues from industrial activities alone are up 12% to $8,035 billion, and adjusted EBITD is $520 million (+73%) with all segments growing year-over-year.
The strong recovery of the last quarter did not prevent a drop in revenues of 7% to 26,032 billion dollars, with net losses of 438 million, but at an adjusted level the net profit still stood at 437 million. It should also be noted that the free cash flow from industrial activities was positive and equal to 2,4 billion dollars e available liquidity reached a record level of 15,9 billion dollars as of December 31, while the net liquidity of industrial activities stood at 0,8 billion. The guidance for this year is also good: in 2021 Cnh Industrial estimates revenues from sales to increase by 8-12% with a positive free cash flow of 0,4-0,8 billion.
On the dividend front, the company has decided to return to the dividend despite the pandemic: a annual coupon of 0,11 euro per ordinary share, for a total of about 150 million euros (about 180 million dollars). Subject to the approval of the shareholders at the next annual meeting (scheduled for 15 April 2021), the coupon detachment date would be set for 19 April 2021. The Iveco operation also allows for the dividend, which will be sold to the Chinese Faw, for a figure that Equita assumes around 3,5 billion euros, i.e. a quarter of the market capitalization.
