Positive outlook for Iveco

Agricultural machinery and truck group, CNH Industrial, has announced it can see “material improvement” in Iveco's profitability by the year-end as the European economy is now on the road to recovery.

Net revenue rose nearly two per cent to €2.09 billion because of what the company described as a “modest recovery” in European demand.

“We expect to have a material improvement in Iveco's trading profit in the fourth quarter from the previous quarter,” said CNH CEO, Richard Tobin.

Truck manufacturers in Europe have faced an extended slump in demand throughout the Eurozone crisis. However, industry analysts are now expecting truck fleets to invest again.

CNH Industrial was recently formed as the heavy vehicle and agricultural machinery arm of Italian car maker Fiat. Though predominantly a maker of farm and construction machinery, about one third of its revenue comes from trucks.

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