Scott Wine is stepping down from the tractor manufacturer to pursue other interests, just as his plan for a turnaround was “starting to bear fruit,” according to a Bank of America analyst.
CNH Industrial has appointed a new CEO following the surprise announcement that current chief executive Scott Wine will depart at the end of June.
Gerrit Marx, who runs commercial truck maker and CNH spinoff Iveco, will succeed Wine effective July 1. Wine is leaving to “pursue other interests,” according to a release.
“We look forward to [Marx] bringing the same energy and focus he has demonstrated so effectively when leading Iveco, to his new role at a time when CNH is navigating the current end-market downcycle,” CNH Chair Suzanne Heywood said in a statement.
Wine is leaving as the tractor maker undergoes a broad restructuring and sharpens its focus on precision agriculture technologies in response to declining equipment demand. CNH announced layoffs last fall, and earlier this year reduced the size of its senior leadership team.
The farm equipment maker will postpone an investor day presentation scheduled for May 21. Bank of America downgraded CNH from buy to neutral following the announcement, Bloomberg reported.
“Sunday’s surprising CEO change adds uncertainty around the transformation,” analyst Michael Feniger wrote in a Monday note, per Bloomberg. “In our view, Mr. Wine’s vision was just starting to bear fruit and the postponement of May’s investor day pushes out a key catalyst at a critical time.”
CNH’s first quarter earnings call will proceed as planned on May 2.