CNH Global To Cut 7,000 Jobs
Feb. 01, 2000
RACINE, Wis. (AP) _ CNH Global NV, the farm and construction equipment company created by last year's acquisition of Case Corp. by New Holland NV, plans to reduce its worldwide work force by about 20 percent _ 7,000 jobs _ by 2002.
The company had previously said it would seek to achieve $400 million to $500 million in annual savings over the next three to four years as a result of the combination.
The Netherlands-based company will close 10 plants and 15 warehouses worldwide by 2002, said spokesman Bill Masterson.
``Case and New Holland do a lot of the same functions,'' Masterson said. ``Since we have like products there is opportunity to combine functions.''
Meanwhile, CNH reported a fourth-quarter loss, before restructuring, of $32 million, or 21 cents per share. It said that compared to a net loss, before restructuring, of $3 million, or 2 cents per share, for the fourth quarter of 1998.
Total revenue for the fourth quarter was $2 billion, a 66 percent increase from the year-ago period.
The fourth-quarter results include full operations of New Holland and about seven weeks of operations from the Racine-based Case, which was acquired last November.
``The merger of New Holland and Case in the fourth quarter created a company with geographic and product line balance, and global size and scope, that is unmatched in our industry. We have begun the actions that will enable us to realize the tremendous cost savings that have been identified,'' said Jean-Pierre Rosso, CNH chairman and chief executive officer.
CNH said it anticipates somewhat higher production during the first quarter of 2000 but a loss is expected during that period in part because of the impact of merger integration expenses.
CNH has 46 plants in 16 countries around the world, including in North America, Europe and Latin America. Its products are sold in 160 countries.
Foreign shares of CNH fell 18 3/4 cents to $13.68 3/4 in trading on the New York Stock Exchange.