CNH Industrial N.V. (CNHI - Free Report) recently announced its agreement to acquire K-Line Ag, the Australian manufacturer of agricultural implements. This acquisition will incorporate key tillage and residue management equipment, which is essential for ensuring maximum seedbed preparation and is a fundamental for productive yields. Additionally, it will also enhance the crop-production portfolios of Case IH and New Holland Agriculture, the company’s global brands of agricultural equipment.
CNH Industrial’s Agricultural Segment’s growth strategy focuses on placing technological advancements at the service of its brands’ global customer base and developing an advanced digital farming offering. Thus, the integration of leading-edge tillage and residue management equipment is an essential.
K-Line has become the largest tillage manufacturer in Australia by designing robust and reliable products for some of the world’s harshest soil conditions. Per CNH Industrial, the K-Line Ag acquisition is a concrete expression of the Agricultural Segment’s stated objective to seek both strategic acquisitions, in order to enhance the company’s agricultural offerings, as well as its role as an industry consolidator.
Apart from acquisitions, CNH Industrial also announced the sale of its Truckline parts business to Bapcor Ltd., Australasia's leading provider of automotive aftermarket parts, accessories, automotive equipment and services, in order to streamline the company’s business. Truckline has 22 branches across Australia, supported by distribution warehouses in Perth, Western Australia, and Brisbane, Queensland.
Zacks Rank & Stocks to Consider
Currently, CNH Industrial carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Auto-Tires-Trucks sector are Spartan Motors, Inc. (SPAR - Free Report) , sporting a Zacks Rank #1 (Strong Buy), SPX Corporation (SPXC - Free Report) and BRP Inc. (DOOO - Free Report) , both carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spartan Motors has an estimated earnings growth rate of 54.17% for the ongoing year. The company’s shares have soared roughly 122.5% in a year’s time.
SPX has an expected earnings growth rate of 22.73% for 2019. The company’s shares have surged 63.4% in the past year.
BRP has a projected earnings growth rate of 18.49% for the current year. Its shares have gained around 15.8% over the past year.
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