Sector: Industrials | Focus: Construction Machinery & Heavy Transportation Equipment
HQ: Bellevue, Washington
Financial Risks
The company faces risks from a potential decline in industry sales, competitive pressures, reduced market share, fluctuating fuel prices, increased regulations, currency/commodity price swings, lower used truck prices, insufficient manufacturing capacity, supplier interruptions, liquidity issues in capital markets, fluctuations in interest rates, and changes in Financial Services segment new business volume. Litigation, including European Commission (EC) settlement-related claims, also poses a risk.
Financial Upside
The company anticipates increased parts sales (3-5% in 2024 and 2025), and an 8-11% increase in average earning assets in 2024. Higher investment yields and a growing Financial Services portfolio are also expected. Capital investments and R&D are planned for 2024 and 2025, potentially boosting operating capacity and product quality.
