MILAN, May 10 (Reuters) - Italian truck and bus maker

Iveco Group ( IVCGF ) on Friday reported a 38% rise in

first-quarter operating profit with margin improvements in all

business segments.

Adjusted earnings before interest and tax (EBIT) from

industrial activities of 201 million euros ($216.56 million)

topped the 161 million analysts had expected for the

January-March quarter, a company-provided consensus of estimates

showed.

Its margin on adjusted EBIT from industrial activities

increased by 170 basis points to 6.1% supported by pricing and

lower production costs, Iveco ( IVCGF ) said.

The company, which confirmed improved full-year forecasts

for 2024 set out in March as part of its long-term business

plan, posted negative industrial free cash flow of 436 million

euros which it said was "in line with our seasonal working

capital".

The outflow was smaller than a year earlier.

Iveco ( IVCGF ) and its staff "are eager to further accelerate their

pathways presented during our recent capital markets day" said

CEO Gerrit Marx, who will leave the company at the end of June

to lead former parent CNH.

Board member Olof Persson, a former CEO at competitor Volvo

Group, has been appointed to replace Marx as CEO of

Iveco ( IVCGF ).

($1 = 0.9282 euros)