# Case/New Hollad posts profits for 2004



## bontai Joe (Sep 16, 2003)

UPDATE 2-CNH Global posts profit vs. year-earlier loss
Thu Feb 3, 2005 10:05 AM ET 
(Adds details on earnings forecast, stock price)

CHICAGO, Feb 3 (Reuters) - CNH Global NV (CNH.N: Quote, Profile, Research) on Thursday reported a fourth-quarter profit, reversing a year-earlier loss, as the farm equipment maker was helped by strong sales of construction machinery.

The company, majority-owned by Italy's Fiat SpA (FIA.MI: Quote, Profile, Research) , earned $26 million, or 11 cents a share, in the fourth quarter, compared with a year-earlier loss of $111 million, or 84 cents a share.

Before restructuring charges in both periods, CNH would have earned $48 million, or 21 cents a share, compared with $29 million, or 22 cents a share.

Analysts' estimates averaged 17 cents a share, in a range from 13 to 24 cents, according to Reuters Estimates.

Revenue increased to $3.0 billion from $2.86 billion.

Sales of construction equipment rose 21 percent while agricultural equipment sales were little changed. Without the impact of the weaker U.S. dollar, construction sales would have risen 16 percent and agricultural sales would have fallen 5 percent.

The Lake Forest, Illinois, company said it produced less agricultural equipment than its dealers sold in an attempt to reduce inventories by about 15 percent.

CNH also gave a more pessimistic industry outlook for 2005 than its competitors, saying it expects worldwide sales of agricultural equipment to be flat and construction equipment to be flat to down 5 percent.

It estimated the company's first-quarter net income before restructuring charges will be about the same as a year ago, or about 3 cents a share.

That is below analysts' estimates, which have ranged from 14 to 20 cents a share, for an average of 17 cents.

It cited higher steel costs and plans for a smaller inventory build, mainly for combines in the Americas.

The company also estimated that its net equipment sales will increase about 5 percent in 2005. The company expects full-year profit to increase about 15 percent, depending on market conditions and commodity costs.

Analysts' 2005 estimates for earnings before charges have averaged $1.25 a share, about 50 percent higher than the 83 cents reported this year.

CNH Global shares rose 1 cent to $18.68 on Thursday morning on the New York Stock Exchange.


----------

