CNH Global NV, which makes Case and New Holland tractors for farmers and builders, said it had a loss in the second quarter as weak demand offset cost cuts and lower production.
The company lost $67 million, or 28 cents per share, compared with a profit in the year-earlier quarter of $347 million, or $1.46 per share.
Analysts surveyed by Thomson Reuters expected, on average, break-even results.
Revenue fell to $3.79 billion from $5.56 billion, more than the $3.74 billion analysts expected.
"We have now experienced almost a full year of significant global economic pressures with inevitable negative consequences for capital equipment markets and industry sales in both construction and agricultural equipment, with corresponding negative impacts on our net sales and operating profit," CEO Harold Boyanovsky said.
So far this year, CNH has reduced its equipment operations inventories and receivables by $918 million and reduced its permanent and temporary salaried and agency positions by 7 percent.
In morning trading, shares fell 49 cents, or 3.5 percent, to $15.33.