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.

Before it's here, it's on the Bloomberg Terminal.