Case Corp Has $194M Quarterly Loss
RACINE, Wis. (AP) _ Case Corp., a big manufacturer of farm and construction equipment, lost $194 million in the fourth quarter amid declining demand for its products and hefty costs to cover job cuts and plant closings.
The loss for the October-December quarter equaled $2.70 per share and reversed a profit of $123 million, or $1.56 per share, in the same period last year, Case reported Tuesday.
Revenue dropped 14 percent to $1.50 billion from $1.75 billion, reflecting a sharp drop in farm equipment sales.
The quarterly loss included $96 million in restructuring costs and the effects of unfavorable exchange rates.
Case said it expects 1999 earnings to be reduced by $30 million to $40 million to cover 800 previously announced job cuts by the end of the year, which would bring the company’s total number of job cuts to 3,400. Case has also announced plans to shut down factories in Hugo, Minn., and Hamilton, Ontario, by the end of this year.
``We are entering 1999 confident that we have taken steps to maximize our performance under current conditions, and we are in an excellent position to show rapid improvement when the market rebounds,″ said Jean-Pierre Rosso, Case chairman and chief executive officer.
For all of 1998, Case earned $64 million, or 75 cents per share, down from $403 million, or $5.11 per share, in 1997. Revenue rose to $6.15 billion from $6.02 billion.
Case shares fell 31 1/4 cents at $20.62 1/2 on the New York Stock Exchange.