CNH Globals earnings drop
CNH Globals earnings drop
CNH Globals earnings drop
SECOND-QUARTER earnings for CNH Global – parent company of Case and New Holland – are reported at $144m, significantly less than the $206m for the same period last year.
This has resulted in a net loss, before goodwill and restructuring, of $12m.
Revenues for the second quarter were $2.9bn, only slightly down on 1999, the result, says CNH, of unfavourable exchange rates, which knocked sales by $150m.
Chairman and chief executive, Jean-Pierre Rosso, says his firm is taking a number of actions to maximise performance in the light of weaker retail sales of agricultural equipment in North America.
"We have completed or announced major steps in our merger integration process which we expect to deliver at least $500m in annual savings by 2003."
More immediately, Mr Rosso says he expects CNHs third-quarter results to record a loss and the full years trading to be "moderately unprofitable" before restructuring and goodwill.
Meanwhile, Agco has also announced its second quarter financial results. Net sales of $633.7m have resulted in a net income of $11.9m. This compares with net sales of $683.5m and net income of $15.5m last year.
As with CNH, the main reason for revenue reduction is put down to unfavourable exchange rates.
Agco says it is focusing on manufacturing and purchasing initiatives to improve operating margins – apart from cost savings achieved from recent facility rationalisations, the company also aims to save a further $75m over the next 2-3 years. *