CNH Global Q2 blows past Wall Street(Reuters) - Farm equipment maker CNH Global N.V. (CNH.N) posted market-topping results for the ninth straight quarter and raised revenue growth outlook for the year, helped by higher crop prices, sending its shares up 10 percent.
High food prices are expected to lift farm profits to record levels this year despite higher costs for seeds and fertilizer. That is leading farmers to invest in equipment to boost productivity.
CNH Global -- the world's second largest maker of farm equipment after Deere & Co (DE.N) -- raised its full-year revenue growth outlook to 15-20 percent, up from its previous outlook of 10 percent.
Morning Star analyst Adam Fleck said the company has gained a lot of market share in places like North America. "Its new products and strategies are paying off," he said.
CNH's parent Fiat Industrial SpA (FI.MI) raised 2011 targets earlier on Monday after higher second-quarter sales helped the truck and heavy equipment maker beat profit forecast by around a fifth.
CNH's second-quarter net income was $320 million, or $1.33 per share, up from $144 million, or 60 cents a share, a year ago. Net sales grew 24 percent to $4.88 billion.
Analysts, on average, were expecting earnings of 99 cents a share on revenue of $4.52 billion, according to Thomson Reuters I/B/E/S.