Burr Ridge, Ill.-based CNH Global N.V. last week reported first-quarter 2008 net income of $112 million, up compared to net income of $95 million in the prior year. Results include restructuring charges, net of tax, of $13 million in the first quarter of 2008, compared with $10 million in 2007. Net income excluding restructuring charges, net of tax, was $125 million, up 19 percent compared to $105 million in the prior year. First-quarter diluted earnings per share were $0.47, compared with $0.40 per share in 2007. Before restructuring, net of tax, first quarter diluted earnings were $0.53 per share, compared with $0.44 per share in the prior year.
“Our first-quarter net income represents the ninth consecutive quarter of year-over-year improvement, which is very encouraging,” said Harold Boyanovsky, CNH president and CEO. “The industrial issues which negatively impacted margins in the fourth quarter of 2007 continued into the first quarter of this year, as strong demand for our agricultural products pressured both our manufacturing operations and our supplier ranks. Corrective actions, which are already underway, will improve results as we progress through the year, leading us to reaffirm our full-year 2008 financial outlook of an expected range of diluted EPS before restructuring, net of tax of $3.30 to $3.60.”
In the quarter, worldwide heavy and light construction equipment industry retail unit volumes were up approximately 5 percent, and were up in every region of the world except North America, with CNH's worldwide retail unit sales of total heavy and light equipment up in line with the market.
Net sales of equipment, comprising the company’s agricultural and construction equipment businesses were $4.1 billion for 2008, compared to $3.2 billion for the same period in 2007. Net sales increased 27 percent including 8 percent related to currency.
Construction equipment net sales increased to $1.2 billion, up from $1.1 billion in 2007. Net sales were up 58 percent in Latin America, up 22 percent in Western Europe, down 41 percent in North America, and up 53 percent in rest-of-world markets.
For the full year, CNH expects both light and heavy construction equipment industry retail unit sales to be above 2007 levels. Increases in Latin America, rest-of-world and Europe are expected to more than offset the decline in North America.
CNH Global N.V. is a world leader in the agricultural and construction equipment businesses. Supported by more than 11,000 dealers in 160 countries, CNH brings together the knowledge and heritage of its Case and New Holland brand families with the strength and resources of its worldwide commercial, industrial, product support and finance organizations.