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Tractor Maker CNH Fall After Surprising CEO Change

(Bloomberg) -- CNH Industrial NV’s shares fell by the most since November after Bank of America downgraded the farm machinery maker following an unexpected announcement that Chief Executive Officer Scott Wine will leave at the end of June.

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CNH accepted Wine’s request to leave the company to pursue other interests, according to a Sunday statement. Gerrit Marx, who is CEO of CNH spinoff Iveco Group NV, will succeed Wine as of July 1. The firm also postponed an investor day scheduled for May 21.

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US shares of the company fell as much as 9.3% in New York to $11.16, the lowest intraday price since mid-December.

“Sunday’s surprising CEO change adds uncertainty around the transformation,” Bank of America analyst Michael Feniger said in a Monday note, in which the firm downgraded the stock to neutral from buy. “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.”

Read More: Agnellis’ CNH Taps Iveco’s Gerrit Marx as New Chief Executive

Tractor makers have been under pressure as sliding crop prices and rising interest rates slow demand from farmers for new equipment. CNH, whose brands include Case IH and New Holland, sits behind only market leader Deere & Co. in the key North American large agriculture segment, according to Bloomberg Intelligence.

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