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LAKE FOREST, Ill., July 24 (Reuters) - CNH Global NV , the world's largest maker of tractors and combines, on Wednesday reported a higher quarterly profit as better sales in Western Europe and Latin America offset lower North American sales.
The company also predicted per share results would be close to break even for all of 2002 before restructuring costs. CNH lost 91 cents a share before restructuring in 2001.
Net income rose to $39 million, or 11 cents a share, in the second quarter, from $6 million, or 2 cents a share, a year ago. Per-share earnings in the latest quarter include a 2-cent restructuring charge. The year-ago figure includes goodwill amortization and restructuring costs of 11 cents per share.
The analysts' consensus estimate was 12 cents per share, within a range of 10 cents to 15 cents, according to Thomson First Call.
Excluding restructuring charges, CNH's second-quarter profit was $45 million, compared to $34 million, excluding restructuring charges and goodwill amortization, a year ago.
Consolidated revenue rose to $2.71 billion from $2.69 billion.
Lake Forest, Illinois-based CNH, which is 85 percent-owned by Italian auto giant Fiat SpA , last month said it expected to post a small profit in 2002, helped by cost savings from a 1999 merger. CNH posted a net loss of $332 million last year.
The company said it expects continued growth in the European agricultural equipment industry and lower interest expense from debt reduction actions to offset weaker agricultural sales in North America.
Revenue from agricultural equipment sales rose 8 percent to $1.778 billion In the second quarter.
But it warned its bottom line would be hurt if the European construction equipment market weakens in the second half of the year.
Construction equipment revenue in the quarter fell 5 percent to $804 million and declined 13 percent excluding acquisitions, hurt by a significant drop in sales of light equipment, especially in North America, CNH said.
Cost savings from profit improvement programs are ahead of schedule at $481 million, CNH said. It added it raised its goal to $850 million in savings by 2005 from an earlier target of $600 million.
CNH said in the latest quarter it introduced its first new models since the merger of New Holland N.V. and Case Corp. in 1999. The new models will carry higher margins than the products they replace.
The company said it expects substantial profit improvement when it replaces most of its Case IH and New Holland product lines with new models by the end of 2004.
Shares of CNH closed Tuesday at $3.14, near an all-time low.