Iveco Group raises full-year forecasts, pricing power to offset higher costs

Iveco Group on Wednesday raised its forecasts regarding full-year revenue, operating profit and cash generation.

The truck maker also said it expected pricing power to offset higher costs of raw materials and energy.

The Italian manufacturer said the decision to revise up forecasts came after the solid results it had achieved so far in 2022 and the ”better availability of semiconductors for the remaining part of the year.”

Iveco said that it expected consolidated adjusted earnings before interest and tax (EBIT) within the range between EUR 420 million to 440 million for the full year, compared with a previous forecast of EUR 400 million to 420 million.

The company now expects net revenue from industrial activities to grow 5% to 6% in 2022, up from a prior forecast of 3% to 4% growth.

Iveco Group’s adjusted EBIT from industrial activities was reported at EUR 64 million during the third quarter, up from EUR 33 million in the year-ago period.

That result was positively affected by net pricing (at EUR 206 million) and volume mix (at EUR 46 million), which more than offset the EUR 152 million burden from higher production costs.

The Italian company has said it will begin deliveries of its first fully electric trucks in 2023 and it has also revealed a prototype of a hydrogen fuel-cell van manufactured in partnership with Hyundai Motor Co.