Shares rise as market welcomes new CEO39;s plans
Confirms forecasts on FY results
Adj. Industrial EBIT down to 167 mln euros in Q3
MILAN, Nov 7 Reuters Iveco Group said on Thursday it would accelerate plans to cut costs and improve efficiency as it reported a 12.6 decline in its thirdquarter operating profit due to a decline in heavy duty truck and bus volumes in Europe.
Shares in the company were up 6.7 by 1015 GMT, among the best performers in Italy39;s bluechip basket, as the market welcomed the move by new Chief Executive Olof Persson.
The Italian manufacturer said that from next year it would accelerate its costcutting and efficiency programme and reprioritise certain investments, to reduce its total operational spending without affecting product plans.
The aim is to further improve our agility to react promptly to our cyclical industry and to lower our profitability breakeven point, Persson, who took the job in July, said in a statement.
In the JulySeptember period, adjusted earnings before interest and tax EBIT from industrial activities amounted to 167 million euros 179 million.
Pricing power and cost management only partially offset the volume decline, Iveco said, with the result coming slightly below a 173 million euro analyst consensus provided by the company.
Persson said Iveco intensified the launch of its 2024 model year truck lineup during the third quarter, with positive initial feedback from customers, while phasingout products launched in 2022….