CNH Global sees sales of equipment increase

"On course as predicted" is the message from CNH Global, the company formed last year with the merger of Case Corporation and New Holland. The company reported a loss of $37m (£24.5m) for the first quarter - in line with forecasts.

Revenue was $2.6bn (£1.7bn), comparable with the same period in 1999, despite unfavourable exchange rates. Sales of construction equipment were up worldwide and both construction and agricultural equipment outperformed the industry.

"Our operating performance exceeded expectations for the quarter despite the impact of higher interest rates and unfavourable foreign exchange," said chairman and chief executive Jean-Pierre Rosso. He went on to state that the process of integrating the two companies was ahead of plan and significant cost reductions had already been achieved.

No agreement has yet been reached on the sale of CNH's Fermec subsidiary - part of the conditions for agreement to the merger. But a number of agricultural products and facilities have been disposed of and negotiations are on-going.

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