CNH Global, manufacturer of Case and New Holland tractors, reported a loss for third quarter 2009 citing an industry wide slowdown in demand for heavy machinery, but "believe that medium and long term global agricultural fundamentals remain strong."

Excluding restructuring charges, CNH reported a loss of $22 million or $0.11 per share, $0.05 higher than the consensus estimate, but considerably lower than $1.09 per share in the year-ago quarter. Revenue declined 32% to $2.96 billion, slightly lower than estimates of roughly $3 billion.

Management commented that due to the continued economic downturn, year-end workforce would be 11%-12% smaller than year-end 2008.

CNH also highlighted their new alliance with Russia's Kamaz JSC to develop a joint venture to produce combines, tractors, and agricultural implements to capitalize of the Russian agricultural market. The join venture will began in 2010 and produce machinery under the CNH family of brands.

"We remain optimistic about the future prospects for our agricultural and construction equipment businesses and believe that the actions we have been taking, to ensure that CNH and its dealers and distributors are ready and able to compete aggressively as market conditions improve, will begin to show results in the fourth quarter," CEO Boyanovsky said.

"CNH continues to manage its business through the industry downturn by controlling cost, reducing company and dealer inventories and improving operating efficiency. At the same time CNH is restructuring its construction equipment operations and improving company liquidity."

CNH Global is a world leader in the agricultural and construction equipment businesses. Supported by 11,300 dealers in 170 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.

- Colvin