CNH Global N.V. (CNH) recently announced that President and CEO, Harold Boyanovsky, will retire on Dec. 31, 2011.
Chief Financial Officer (CFO) Richard Tobin will hold conjoint responsibilities of President and CEO of CNH, effective Jan. 1, 2012. On the other hand, Camillo Rossotto, Treasurer and head of financial services for Fiat Industrial S.p.A., will assume the role of Chief Financial Officer of CNH, effective Jan. 1, 2012 along with retaining his current responsibilities.
Mr. Boyanovsky has been serving as the President and CEO of CNH since March 2005. Although CNH has done really well under Mr. Boyanovsky, the company did not provide any specific reason for Boyanovsky’s departure. Richard Tobin has been Chief Financial Officer of CNH since March 2010.
Prior to joining CNH, Mr. Tobin was serving SGS Group Geneva, Switzerland, where in June 2004 he was appointed Chief Financial Officer and head of information technology. Before that, he was Chief Operating Officer of SGS North America. Mr. Tobin has also held management positions at Alcan Aluminum of Montreal Canada, the Alusuisse Lonza Group of Zurich, Switzerland and GTE Corporation of Stamford, Connecticut USA.
Mr. Rossotto has held a number of roles within Fiat's finance group in Italy, Germany and Brazil, as well as in the United States, as Chief Financial Officer of CNH Capital since joining the Fiat Group in 1989.
Earlier, CNH reported a net income of $272 million or $1.13 per share in the third quarter of 2011, up from a net income of $102 million or 43 cents in the year-ago quarter. The earnings results were ahead of the Zacks Consensus Estimate of 82 cents per share.
Net sales of Equipment, excluding revenue from Financial Services were $4.61 billion, up 30% from the year-ago quarter, as agricultural equipment markets continue to perform well and the construction equipment market continues its recovery.
On a geographical basis, 42% of total revenues came from North America, 29% came from Europe, Africa, and Middle East. 17% of total revenues came from Latin America and 12% from Asia-Pacific. On a segmental basis, revenues from Agricultural Equipment were $3.6 billion, up 29% from the year-ago quarter, led by favorable trading conditions across all regions. This segment accounted for 77% of total revenues.
Revenues from Construction Equipment were $1047 million, up 36% from the year-ago quarter, led by improvements in market conditions in all regions. This segment accounted for 77% of total revenues. Net Income attributable to Financial Services was $53 million, up 13% from the year-ago quarter.
Going forward, for fiscal 2011, management expects strong demand in the agricultural and construction equipment markets, driven by a favorable environment for agricultural commodity prices and a positive environment in agricultural commodity prices and the consequent increase in planting and farming income estimates.
Further, the environment for construction equipment continues to improve overall with the exception of the APAC region where the demand environment has begun to soften from its significant growth trajectory over the last three years.
Based on the company’s performance, management reiterated its fiscal 2011 revenue guidance to 15%-20%. The company also reiterated its operating margin of 7.1%-7.9%.
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