Iveco Swings to Net Loss Despite Rise in Revenue, Hurt by Devaluation of Argentine Peso

By Pierre Bertrand

Iveco Group swung to a net loss in the fourth quarter of 2023, hurt by the devaluation of the Argentine peso and despite a rise in revenue.

The Italian commercial-vehicle maker reported a 25 million-euro ($26.9 million) net loss Friday compared with a EUR89 million profit a year prior, despite revenue growing 10% to EUR4.88 billion.

The result compares to analysts' expectations of EUR93.88 million in net profit and EUR4.49 billion in revenue, according to Alpha Value-compiled consensus. On an adjusted basis, quarterly net profit rose to EUR49 million from EUR44 million, while cost of sales rose 8.6% to EUR4.13 billion.

"The sudden Argentine peso devaluation in December 2023 negatively impacted our financial expenses and net industrial cash position," Chief Executive Gerrit Marx said.

The company said it intends to repurchase up to 10 million shares for up to EUR130 million.

Iveco, which recently landed contracts to supply 153 electric buses for Milan's public transport agency in December, and 411 more to Rome in January, said that it would propose an annual cash dividend of EUR0.22 a share.

Looking ahead for the rest of the year, the company said it was targeting adjusted earnings before interest and taxes between EUR900 million and EUR950 million.

Net revenue of industrial activities in 2024 is expected to fall by about 5%, while it is targeting adjusted industrial activities EBIT of between EUR770 million and EUR820 million in 2024.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

February 09, 2024 02:43 ET (07:43 GMT)

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