By Melodie Warner
CNH Global N.V.'s (CNH) second-quarter earnings rose 33% as
strong agricultural-equipment sales offset weaker construction
equipment demand.
CNH, the world's second-largest maker of farm machinery behind
Deere & Co. (DE), has seen improved profits over the past year
as record high grain prices gave CNH's base of largely row-crop
farmers more money to spend on equipment.
Meanwhile, Italy's Fiat Industrial SpA (FI.MI) agreed in
November to acquire the 12% of CNH it doesn't already own in a
stock deal worth roughly $1.48 billion at the time. Once CNH and
Fiat Industrial complete the merger, they will change their name to
CNH Industrial.
CNH Global reported a profit of $471 million, or $1.92 a share,
up from $355 million, or $1.47 a share, a year earlier. Excluding
restructuring costs and other items, earnings rose to $1.93 a share
from $1.47. Sales of equipment increased 9% to $5.48 billion.
Analysts polled by Thomson Reuters had most recently forecast
earnings of $1.48 a share on revenue of $5.27 billion.
Equipment operating margin improved to 12% from 10.4%.
Sales of agricultural equipment rose 13% to $4.54 billion and
construction-equipment sales declined 6.2% to $939 million.
Shares of the company, which also backed its full-year guidance,
closed Tuesday at $44.76 and were inactive premarket. The stock has
risen 11% so far this year.
Write to Melodie Warner at melodie.warner@wsj.com
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