CNH Global NV (CNH) said it would post a $20 million charge in the first quarter because of tax changes in recently enacted federal health-care legislation.
The farm- and construction-machinery maker is the latest of a slew of firms to reveal special charges tied to retiree prescription costs since President Barack Obama signed the health-care overhaul into law.
CNH, the world's No. 2 farm-equipment company behind Deere & Co. (DE), reported a fourth-quarter profit of $28 million on $3.21 billion in revenue in January.
Majority owned by Fiat SpA (FIATY, F.MI), CNH said the $20 million charge reflects the costs of subsidies it receives from the government for providing retirees with prescription-drug benefits losing tax-deductible status under the new law.
CNH shares were down 0.6% at $32.96 in after-hours trading. The stock has more than doubled in the last year, though it was trading at an all-time low a little more than a year ago.
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