CNH Separates On- and Off-Highway Segments



Case backhoe loader digs a trench.
CNH's "Off-Highway” company will include Case Construction Equipment.

CNH Industrial will separate its “On-Highway” and “Off-Highway” businesses. The company says the spin-off of the “On-Highway” assets will better meet respective business needs and optimize the cost and capital structure of each company. The “On-Highway” company will also comprise the IVECO, IVECO BUS, and Heuliez Bus commercial vehicle brands (69 percent of revenue), together with the FPT Industrial powertrain business (31 percent of revenue).

For more on what this means for Case, click here.

The “Off-Highway” company will include Case Construction Equipment as well as agriculture products. This segment had 2018 pro-forma industrial activities revenues of $15.6 billion. Specialty vehicles (six percent of revenue) will also remain within the “Off-Highway” company. 

The split is part of CNH’s five-year 2020-2024 business plan called “Transform 2 Win,” which the company says will empower its five operating segments. Net sales are also projected to grow at a compound annual growth rate of 5 percent under this plan. 

Source: CNH Industrial