CNH sees softer sales ahead

CNH beats in 1Q but sees weaker sales ahead

Associated Press

CNH Global NV's shares fell Tuesday after the agricultural and equipment maker said it expects a decline in sales volume this year.

The company reported that its agricultural equipment revenue, which makes up the bulk of its business, increased 9 percent during the first quarter on higher prices and improved sales volume. But that was not enough to offset a 26 percent decline in construction equipment revenue due to continued weakness in that sector.

CNH said it now expects agricultural sales volume should be flat to down 5 percent in 2013 and its construction equipment volume is expected to be down 5 to 10 percent.

The company earned $326 million, or $1.33 per share, for the quarter that ended March 31. That is compared with $269 million, or $1.11 per share, earned in the first quarter last year. Its revenue increased slightly to $4.95 billion from $4.9 billion.

Analyst polled by FactSet anticipated earnings of $1 per share on revenue of $4.57 billion.

CNH is expected to fully merge with its parent, Italian heavy-duty vehicles maker Fiat Industrial, and later this year. The new entity has yet to be named, but it will be based in the Netherlands.

The company's stock price fell $4.24, more than 9 percent, to close at $41.13. Its stock price, which is quite volatile, rebounded $4.17 to $45.30 in extended trading.

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