CNH announced 2009 financial results. Net sales declined 26% to $12,783 million for the full year as the industry faced a global slowdown. The company put in place tight cost controls which delivered an operating profit of $373 million from equipment operations for the full year, which was down 75% from the same period in 2008.
The company took measures to reduce working capital more than $1.2 billion by targeting declines in accounts receivable and inventories. The company reduced ag equipment inventories in the company and dealer channels by one-third. CNH underproduced retail sales by 51% in construction and 12% in ag equipment.
CNH's 2010 outlook is for global agricultural markets to decline approximately 5%-10%. CNH's outlook also calls for construction equipment markets globally to increase approximately 5%-10% during 2010.
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