BASILDON - CNH Industrial (NYSE:CNHI) has teamed up with Intelsat, a major satellite and terrestrial communication network operator, to bring satellite internet access to farmers in remote areas. This collaboration, announced today, marks the first initiative to offer ubiquitous internet connectivity through a ruggedized satellite communications (SATCOM) service for agricultural customers.
Intelsat is set to provide multi-orbit internet access to connect CNH's agricultural equipment in hard-to-reach locations. The partnership will initially benefit farmers in Brazil, where a study by ConectarAgro's Rural Connectivity Indicator shows only 19% of agricultural areas have high-speed internet access. The service is expected to be available in the second half of 2024, with plans to expand to the U.S., Australia, and other regions later on.
The satellite terminals, designed to endure the harsh farm environment, will be installed and supported by Case IH and New Holland dealers. These terminals are tested to withstand extreme weather, vibrations, and shocks typical in farming operations. The enhanced connectivity will allow farmers to leverage precision agriculture, optimizing productivity and yield as intelligent machines communicate and coordinate tasks through the cloud.
The collaboration addresses a significant challenge in global agriculture, as less than 33% of the world's surface is covered by mobile networks, according to the Food and Agriculture Organization of the United Nations. Satellite technology offers a solution to this issue, particularly for farms beyond the reach of cellular towers.
Marc Kermisch, Chief Digital and Information Officer at CNH, emphasized the importance of reliable and rugged connectivity for farmers worldwide. Dave Wajsgras, CEO of Intelsat, highlighted the company's unique ability to provide multi-orbit connectivity, ensuring high network reliability and user experience.
This strategic partnership is based on a press release statement and is part of CNH Industrial's ongoing commitment to innovation, sustainability, and productivity in the agricultural sector. The company, known for its comprehensive range of agricultural and construction equipment, continues to pioneer advancements that drive customer efficiency and success.
InvestingPro Insights
In light of CNH Industrial's (NYSE:CNHI) recent partnership with Intelsat to enhance internet connectivity for farmers, the company's financial health and market performance become increasingly relevant to investors monitoring its growth trajectory. With a steadfast focus on innovation, CNH Industrial also demonstrates a commitment to shareholder value, as reflected in several key metrics and InvestingPro Tips.
InvestingPro data shows CNH Industrial with a market capitalization of $14.21 billion, underscoring its significant presence in the Machinery industry. Notably, the company operates with a Price-to-Earnings (P/E) ratio of 6.38, which, when adjusted for the last twelve months as of Q4 2023, sits at 5.93. This figure suggests that CNHI is trading at a low earnings multiple, potentially indicating an attractive valuation relative to near-term earnings growth.
Further solidifying its appeal to investors, CNH Industrial boasts a dividend yield of 4.12%, with a remarkable dividend growth of 56.76% over the last twelve months as of Q4 2023. This is in line with one of the InvestingPro Tips that highlights the company's record of raising its dividend for four consecutive years, reflecting a reliable income stream for investors.
For those seeking more in-depth analysis, there are additional InvestingPro Tips available, including insights on management's aggressive share buybacks and the company's strong liquidity position, with liquid assets surpassing short-term obligations. Moreover, analysts predict CNH Industrial to be profitable this year, which is an essential factor for long-term investment considerations.
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