RE:CSE
07/20 07:27 CASE SEES $0.50 NEGATIVE IMPACT TO 99 FOR LOW EQUIPMENT DEMAND IN N.AMERICA
RACINE, Wis., July 20 (Reuters) - Farming and construction equipment maker Case Corp. <CSE.N> reported on Tuesday that second-quarter net income fell 71 percent on weak demand for big agricultural equipment, and said the slump will lead to more production cuts.
Case earned $36 million, or 46 cents per diluted share, including costs associated with its planned merger with European competitor New Holland NV <NH.N>, compared with $126 million, or $1.61, a year ago. Earnings were a penny above the analysts' consensus estimate, according to First Call Corp., which tracks such estimates.
Second-quarter revenues fell to $1.47 billion from $1.73 billion in the year-ago quarter, and operating earnings were $83 million, down from $199 million a year ago. Earnings were hit by lower sales of large equipment and unfavorable foreign currency exchange rates, the company said.
The company has been hit hard for the past several quarters by plunging demand for farm equipment, . . .
The New Holland deal remains on track to close later this year, Case said.
Case shares rose 6 cents to $47 Tuesday morning on the New York Stock Exchange.
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