Based on large increases in international sales, CNH Global N.V. last week reported third-quarter 2007 net income of $122 million, up 82 percent compared to net income of $67 million in the prior year. Results include restructuring charges, net of tax, of $26 million in the third quarter of 2007, compared with $4 million in 2006. Net income excluding restructuring charges, net of tax, was $148 million, up 108 percent compared to $71 million in the prior year. Third-quarter diluted earnings per share were $0.51, compared with $0.28 per share in 2006. Before restructuring, net of tax, third-quarter diluted earnings were $0.62 per share, compared with $0.30 per share in the prior year.
For the first nine months of 2007, net income of $445 million was up 73 percent compared to net income of $257 million in 2006. First nine months diluted earnings per share were $1.87, compared with $1.09 per share in the prior year.
“Our growth in the quarter exceeded industry performance, as our actions to revitalize our brands, enhance our customer and quality focus, and leverage our global footprint continue to gain traction,” said Harold Boyanovsky, CNH president and CEO. “We are increasing our full year 2007 financial outlook with an expected range of diluted EPS, excluding restructuring, forecast at $2.55 to $2.60.”
Construction equipment net sales in the quarter increased to $1.3 billion, up 28 percent compared to the prior year. Net sales were up 95 percent in rest-of-world markets, up 69 percent in Latin America, up 39 percent in Western Europe, but down 7 percent in North America.
For the full year, CNH expects North American industry retail unit sales of both heavy and light construction equipment to be down 10 to 15 percent compared with 2006. North American industry sales of both heavy and light construction equipment continued weakening in the third quarter, as housing starts and activity levels declined.
For the year, CNH expects both heavy and light construction equipment industry retail unit sales outside of North America to be up significantly, more than offsetting the decline in North America, following the pattern of the first nine months of the year. CNH expects industry sales of total heavy and light equipment to be up about 15 percent in Western Europe, up between 30 and 35 percent in Latin America and up 25 to 30 percent in rest-of-world markets.
In total, CNH expects worldwide industry retail unit sales of both heavy and light construction equipment to be up about 10 percent compared with 2006.
CNH anticipates that 2007 diluted earnings per share, before restructuring, net of tax, should be in the range of $2.55 to $2.60, compared with $1.53 for the full-year 2006.