Iveco Group 2022 second quarter results

Date:2022-08-04 Author:Rosy Source:www.chinaspv.com

Iveco Group consolidated revenues of €3.4 billion (up ~2% year on year)

Consolidated revenues of €3,371 million, up 1.5%. Net revenues of Industrial Activities of €3,329 million, up 1.1%, mainly due to strong positive price realization.

Adjusted EBIT of €118 million (€126 million in Q2 2021), with a 3.5% margin (3.8% margin in Q2 2021). Adjusted EBIT of Industrial Activities of €91 million (€110 million in Q2 2021), with positive price realization close to offset higher raw material and energy cost.

Adjusted net income of €60 million (adjusted net income of €77 million in Q2 2021), which excludes a negative after-tax impact of €15 million from the first time adoption of the hyperinflationary accounting in Turkey. Adjusted diluted earnings per share of €0.20 (adjusted diluted earnings per share of €0.26 in Q2 2021).

Reported income tax expense of €29 million, with adjusted effective tax rate (adjusted ETR) of 33% in Q2 2022 (35% in H1 2022). The adjusted ETR reflects the different tax rates applied in the jurisdictions where the Group operates and other discrete items.

Net cash of Industrial Activities at €625 million (€1,063 million at 31st December 2021 or €765 million at 31st March 2022). Free cash flow of Industrial Activities was negative €111 million, €293 million lower compared to Q2 2021 due to working capital absorption deriving from the impact of component shortages on inventory level and lower production vs Q2 2021.

Available liquidity at €3,495 million as of 30th June 2022, up €105 million from 31st March 2022, including €2,000 million of undrawn committed facilities.

"As we anticipated, the second quarter was fiercely challenged by continued supply chain issues, raw material and energy cost increases, and political instability. And yet, this didn't stop us in both running our business effectively and strengthening our partnership network. We achieved a remarkable €118 million of Adjusted EBIT, mainly driven by solid industrial activity performance and higher profitability in our captive financial business, and our book-to-bill is decidedly positive, showing that the demand for our products remains strong across the board. On the partnership side, we forged close ties with Eni on several programmes, and just lately we announced the supply of fuel cells by HTWO, a Hyundai brand, for our future hydrogen buses. All in all we are on track, delivering sound results and running the industrial machine at the right pace: we have now built the fleet we need to swiftly supply our customers, in the coming months and across all segments, with the vehicles and engines they demand."