CNH Global 2nd-Quarter Net Up 33% on Agricultural-Equipment Sales

   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 [e-mail]

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