CNH Global sees net income loss for fourth quarter trading
By Andy Collings
CNH Global – the company formed after the merger of New Holland and Case – had a net income of $162m for its full fiscal year, but registered a $32m loss in the fourth quarter.
These results, it says, reflect full periods for New Holland and about seven weeks of Case operations.
Net income is significantly down, with the previous year recording $287m. The firm says this fall was largely the result of lower volume and the impact of acquisitions, although it was partially offset by price rises and improved operating performance.
CNH also expects a loss to be incurred in the first quarter of this year as the impact of merger integration expenses and unfavourable exchange rates offset the expected rise in production.
On the Case merger front, CNH expects to save up to $500m through amalgamation of buying, industrial restructuring, research and development, and SG&A expenses.
The company reports it is evaluating the divestiture or closure of a fifth of its manufacturing locations and closure of about a third of its 45 parts depots.
Jobs will also go. There are plans to cut the worldwide workforce by about 20% by 2002. *