CNH Global posts 3Q loss, but beats predictions

CNH Global posts $25 million 3rd-quarter loss, but beats Wall Street estimates; plans job cuts

• On 11:23 am EDT, Wednesday October 21, 2009

BURR RIDGE, Ill. (AP) -- CNH Global NV, which makes Case and New Holland tractors for farmers and builders, said Wednesday it posted a $25 million third-quarter loss, blaming an industrywide drop in demand for its products.

But the loss was smaller than Wall Street expected and CNH shares rose $1.93, or 9.7 percent, to $21.80 in morning trading after hitting a 52-week high of $22.75 earlier in the day.

CNH's loss amounted to 11 cents per share and compared with a third-quarter 2008 profit of $252 million, or $1.06 per share.

Excluding restructuring charges, the company posted a loss of $22 million, or 9 cents per share, compared with a profit of $259 million, or $1.09 per share, in the year-ago quarter.

Net sales of equipment fell 32 percent to $2.96 billion from $4.33 billion, as agricultural equipment sales fell 23 percent and construction equipment sales dropped 56 percent.

Analysts polled by Thomson Reuters expected a loss of 14 cents per share on $3.04 billion in revenue.

CNH said that in light of the continued economic downturn, it continued to focus on cutting costs during the recent quarter and is on track to cut between 11 percent and 12 percent of its payroll by the end of the year.