Iveco title in deep red, ballasted by coupon detachment from the change to top. In an announcement that surprised analysts and investors, the company announced that from July 1st, Olof Persson, current member of the board of directors, will occupy the position of managing director in place of Gerrit Marx who will instead return to CNH Industrial, where he had already been president of the Commercial and Specialty Vehicles division from 2019 to 2021 (when Iveco Group was spun off from CNH), and where he will take the place of the current CEO Scott Wine, whose request to leave the company at the end of the current three-year business plan cycle to pursue other interests was accepted by the board of directors.
The Iveco stock on the stock exchange: the ex-dividend date also weighs
The stock drops 3,46% at 11,72 euros per share, achieving the worst performance of the Ftse Mib. However, it also weighs heavily ex-dividend of 0,22 euros per share. At the beginning of April, the shares had reached a record of 14,61 euros per share (14,58 euros at the close). However, since the beginning of the year at the top of April, they have achieved a sprint of around 80%.
"The news came completely unexpectedly, as demonstrated by CNH Industrial's decision to postpone the Capital Markets Day. In our opinion, the timing is not ideal (shortly after the presentation of the new Iveco Group industrial plan and before the CNH CMD). For this reason, we expect potential volatility in the securities of both companies,” they explain Intesa Sanpaolo analysts, noting that “Persson's extensive experience in the industrial sector should reassure investors to some extent about the potential continuity of the execution of the industrial plan, with the confirmation of the main strategic guidelines of the group".
Olof Persson new CEO of Iveco, Marx moves to Cnh
Olof Persson actively participated in the development of the plans presented at the Capital Markets Day in March and has an impressive career in the automotive industry, having also served as state CEO of Volvo Group.
“On behalf of everyone at Iveco Group I would like to thank Gerrit for his energetic and effective leadership over the last two and a half years and wish him every success in the role he will take on. We are fortunate that Olof, with his consolidated experience in the sector, will become CEO, ensuring continuity in the execution of the plans presented in March,” he said Suzanne Heywood, chair of Iveco group.
In Cnh Industrial Marx is called upon to "bring the same energy and focus that he has so effectively demonstrated by leading the Iveco Group", continued Heywood, at a time when CNH has to deal with “a downward cycle of the end market by placing emphasis on inventory and cost management, margin expansion and exploiting the full potential of the new technology stack”.
In the more than three years that Wine has been CEO, CNH has become a pure-play in the agricultural and construction sectors after the split from Iveco Group and is now listed exclusively on the New York Stock Exchange. In this period the company has reported record revenues and EBIT margins, more than doubled research and development expenses, launched margin improvement and value enhancement initiatives and by May 2024 will have returned more than $3 billion to shareholders in the form of dividends and share repurchases. Iveco Group's first quarter financial results will be presented by Gerrit Marx, as expected, on May 10th.
