World Machine Builders Are Suffering from Weak Economy

CASE New Holland has posted a $US67 million ($A81 million)   net loss for the second quarter of 2009 that can be partially attributed to a   60% drop in construction equipment sales from the corresponding period in   2008.

CNH’s $67 million loss in the second quarter was down 120%   from an attributable net income of $347 million in the same period in   2008.  

The company posted a $193 million loss for the first six months of   2009, a 142% dive on the net income of $459 million for the first half of   2008.  

“In terms of this quarter’s results, we have now experienced almost   a full year of significant global economic pressures with inevitable negative   consequences for capital equipment markets and industry sales in both   agricultural and construction  equipment, with corresponding negative impacts on   our net sales and operating profit,” CNH president and chief executive officer   Harold Boyanovsky said.  

Boyanovsky said he was optimistic about CNH’s   future and the company had taken many cost-cutting measures to minimise the   impact of the downturn, including slashing construction equipment production by   55%.  

Also, the company’s job cuts in the quarter led to a 13% cumulative   reduction in construction equipment-related positions.  

Further job cuts   are expected in the second half of 2009 and the company has forecast full-year   company-wide staff cuts up to 12%.  

Total revenue for the quarter was $3.7   billion, a dip on the corresponding 2008 period’s $5.5 billion.  

The   company forecasts 2009 full-year equipment operations net sales to fall 30% on   2008.

By Sinoway Industrial (Shanghai) Co.,Ltd
  Contact Us for more information

Previous: Australian Imports of Heavy Equipment Slump
Next: Caterpillar Telehandlers Are Coming to Asia