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UPDATE 1-CNH profit falls, but farm sales improve

(Adds earnings details, early stock action)

CHICAGO, July 24 (Reuters) - CNH Global N.V. , one of the world's largest farm equipment makers, on Thursday reported lower quarterly earnings due to restructuring charges, but said industrywide sales showed notable improvement.

CNH, whose parent is Italian carmaker Fiat , said sales of its own equipment, especially combines, increased at the retail level, enabling dealers to reduce stocks as it adjusted its manufacturing output below demand.

The agricultural equipment industry, which has suffered through a five-year farm recession, saw second-quarter sales improve "significantly" from a year ago in North America and Latin America, CNH said.

The Lake Forest, Illinois, company said second-quarter net income fell to $36 million, or 27 cents a share, from $39 million, or 57 cents a share, a year earlier.

Excluding restructuring charges in both years, earnings would have fallen to 42 cents a share from 66 cents.

Analysts expected profit of 42 cents a share, with estimates ranging from 27 cents to 55 cents, according to Thomson First Call.

Revenue rose to $2.91 billion from $2.71 billion, helped by the weaker dollar, CNH said.

For the full year, CNH predicted "significant bottom line improvement," based on expected market share gains in high-horsepower tractors and combines, cost controls and higher margins on new products.

Shares of CNH were up 26 cents, or 3 percent, to $8.81 in early New York Stock Exchange trading.