CNH Plunges on Unexpected Quarterly Loss, Cut Revenue Target

  • Venezuela currency charge hurts third-quarter earnings
  • Weakening Latin America demand seen holding back revenue

CNH Industrial NV tumbled the most in three months after posting an unexpected third-quarter loss and cutting its revenue target for 2015.

CNH fell as much as 6 percent, the steepest drop since July 29, and was trading down 2 percent at 11:42 a.m. in New York. The stock has declined 17 percent this year, valuing the producer of Iveco trucks and New Holland tractors at $9.1 billion.

The third-quarter net loss totaled $124 million versus profit of $173 million a year earlier, the London-based company said Thursday in a statement. Analysts surveyed by Bloomberg had estimated a profit. Earnings were hurt by a $150 million one-time currency charge at its Venezuelan operations. CNH, citing weakening demand in Latin America, forecast that sales this year will total $25 billion to $26 billion, a cut of $1 billion from both ends of the range.

CNH, which already reduced its operating margin guidance for 2015 in July, posted a decline in sales at all main businesses, with profit falling at the agricultural equipment unit while rising at the commercial-vehicle division.

Chairman Sergio Marchionne, who is also chief executive officer of the carmaker now known as Fiat Chrysler Automobiles NV, announced a surprise quarterly loss also at the auto producer on Wednesday. Exor, the holding company of Italy’s billionaire Agnelli family, controls both Fiat Chrysler and CNH.

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