New Holland Reports Third Quarter Profit of $39 Million

AMSTERDAM, Netherlands (PROTEXT) - * Third quarter earnings per share (US GAAP) totaled $.25,

bringing EPS for the first nine months of 1999 to $1.23. * Consolidated net revenues totaled $1.3 billion, up 2%compared

to the third quarter of 1998. * New Holland's acquisition of Case Corporation is onschedule. * New Holland joint venture in China begins operations. "New Holland's inherent strengths have continued to serve uswell in a difficult market," Umberto Quadrino, New Holland'sChief Executive Officer said. "Our product and geographic balancehas reduced our exposure and enabled us to capitalize on stableand growing markets and product segments around the world. "The restructuring programs we launched a year ago contributedsignificantly to our bottom line in the third quarter. Tightcontrol of costs across our operations has produced the bestmargin in the industry, and reduced overheads in our basebusiness below 1998 levels. As a result, we have been able tosustain our investment in new products, services, and marketswhile delivering a return to our shareholders that compares veryfavorably within the industry. "Once the review process has been completed by the EuropeanUnion and the United States, a new $12 billion company will beformed, delivering value to customers through unparalleled choicein innovative products and services. Present in over 160countries, New Holland and Case combined will serve morecustomers than any other company in the industry. Even morebalanced across markets and products, with tremendousopportunities for operating synergies, the combined company iswell positioned to deliver outstanding shareholder value in theyears ahead." New Holland's bottom line benefits from its global balance. New Holland N.V. (NYSE: NH), one of the world's leadingproducers of agricultural and construction equipment, todayreported unaudited results for the third quarter of 1999. Thirdquarter earnings per share (US GAAP) totaled $.25, compared to$.33 per share in 1998. Earnings per share (US GAAP) for thefirst nine months of 1999 were $1.23, compared to $1.93 in 1998. The Company's accounts are prepared in accordance withInternational Accounting Standards (IAS). Earnings per sharereported above are calculated using net income in accordance withUnited States Generally Accepted Accounting Principles (US GAAP). Third quarter consolidated net income totaled $39 million,compared to $57 million in the same period last year, down 31%.Consolidated net income for the first nine months totaled $191million. Worldwide consolidated net sales and revenues for the thirdquarter totaled $1.308 billion, compared to $1.277 billion in1998. Revenues for the first nine months were $4.268 billion,compared to $4.488 billion last year. New Holland's 1999 netsales and revenues benefited significantly from revenuesgenerated by acquisitions, mainly Orenstein & Koppel (O&K). Therelative strength of the dollar reduced top line performance byabout $68 million in the quarter and $151 million year-to-date.Currency had a minor impact on net income for the quarter. New Products for World Agriculture. During the quarter New Holland extended the availability ofmany of the Company's newest products to the markets of theAsia/Pacific region. All three of the Company's new small andmedium range tractor series were launched in selected marketsincluding the TS Series (75 to 100 horsepower) in Malaysia andThailand. In both Korea and Taiwan, New Holland introduced the TLSeries (65 to 95 horsepower), along with the TN Series (35 to 88horsepower) in Taiwan only. In Australia, New Holland launchedits full line of telescopic handlers, while in New Zealand, theCompany introduced its new FX28 and FX38 self-propelled forageharvesters. Europe saw the introduction of New Holland's latest largesquare balers featuring the industry's first self-steering tandemaxle for superb driving characteristics in the field and on theroad. With enhancements to the InfoView(TM) monitor and aredesigned CropCutter(TM) for the shortest cut on the market, thefour models offer European farmers the most advanced balersavailable. Equipment Operations. Third quarter net sales from Equipment Operations totaled$1.241 billion, compared to $1.215 billion for the same period in1998. During the quarter, the decline in revenue resulting fromthe current unfavorable conditions in the agricultural equipmentindustry was more than offset by the additional revenue resultingfrom Company's acquisition of O&K. Equipment Operations net salesfor the first nine months were $4.082 billion compared to $4.317billion in 1998. Equipment Operations gross margin as a percent of net sales ofequipment was 20.8% in the third quarter of 1999, down from22.4% for the third quarter of 1998. For the quarter, lowervolumes and adverse mix accounted for nearly all the year-over-year drop. During the quarter, New Holland under-produced retaildemand by 14% worldwide. R&D expenses rose by 14%, compared to 1998, due to theacquisition of O&K, and to ongoing higher levels of new productdevelopment activity, particularly for EEA and new markets. SG&A expenses as a percent of net sales of equipment alsoincreased compared to the third quarter of 1998. The additionalexpenses attributable to recent acquisitions, particularly O&K,and higher levels of funding for the Company's Supply ChainManagement Project were mostly offset by the benefits of theCompany's restructuring and cost savings initiatives, andfavorable currency effects. Excluding acquisitions, SG&A expensesdeclined compared to the same period last year. Operating income for the third quarter was $45 million,compared to $80 million in 1998. In the third quarter, theCompany estimates that the strength of the US dollar had aminimal impact on operating income. Operating income in theperiod benefited from the favorable re-evaluation of certainreserves. For the first nine months, operating income totaled$268 million, compared to $462 million last year. Financial Services. Third quarter finance and interest income declined by 5%, from$98 million in 1998 to $93 million, due mainly to the reductionof dealer receivables as the Company has continued to aligndealer inventories to market demand. In the United States and Canada, Financial Services thirdquarter acquisitions of new retail and lease receivablesincreased by 3%, to $330 million, compared with 1998 levels. InEurope, third quarter acquisitions of retail and leasereceivables by the Company's joint venture with Barclays Bankincreased by 16% to $135 million, compared to the third quarterof 1998, as Financial Services continues its rapid expansion inthe markets of continental Europe. Effective Tax Rate. The Company's effective consolidated tax rate for the firstnine months of 1999 was 31%, down from 34% in 1998 due to shiftsin the geographic mix of profits. Changes in Inventories and Receivables. Equipment Operationsinventories at September 30, 1999 were down by over $230 millioncompared to December 31, 1998 levels. This reflects favorablecurrency translation and the Company's actions to aligninventories with market conditions. Trade and other receivablesincreased by $164 million due mainly to the $191 million one-timereclassification from finance to trade receivables reported inthe first quarter, partly offset by currency. China Joint Venture Begins Operations. In September, Harbin New Holland Beidahuang Tractor Ltd. beganoperations in the People's Republic of China. The joint venturewill produce New Holland agricultural tractors in the 100-180horsepower range for sale in the People's Republic of China andfor export. Preparation of the factory is scheduled during thecoming winter months, with production beginning in the spring of2000. New Holland owns approximately 70% of the joint venturewith the Heilongjiang Beidahuang State Farm Group holding theremaining 30%. Market Outlook: Agricultural Equipment. "Our outlook for 1999 has not changed appreciably since ourmid-year forecast," Tom Kennedy, New Holland's Chief MarketingOfficer, said. In North America, industry sales of big tractorsand combines are expected to be down by over 35% for the year.Sales of agricultural tractors in Western Europe should end theyear up slightly compared to 1998, with particularly strongperformances in France and Italy. Combine harvester sales forseason '99 were down by about 10%, however. In Brazil we expectthe industry to end the year at, or slightly above, last year'slevels, while the other markets of Latin America will likely bedown by about 40%. The Africa and the Middle East region will bewell below 1998 levels. Many of the markets in the Asia Pacificregion are showing modest improvement, and we anticipate arecovery of about 5% for the year. "No major changes are anticipated in 2000. Industry sales ofbig equipment in North America should remain at or near thisyear's level, while sales in Western Europe should be downmarginally. In Brazil, the market is expected to be volatilearound 1999 levels, while the other markets of Latin Americashould show modest improvement. The Asia Pacific region shouldcontinue the slow recovery seen during the second half of 1999." Market Outlook: Construction Equipment. In North America the outlook remains positive for skid steerloaders, while sales of backhoe loaders and heavy equipment areexpected to be lower year-over-year. Latin America, with theexception of Mexico, remains depressed with no change expectedfor the balance of 1999. The Brazilian economy is showing signsof recovery at a faster pace than forecast, but significanteffects on demand are not expected until next year. In Western Europe industry outlook for 1999 remains positivewith strong growth in Italy, France, Spain and Germany and higherdemand in light machinery. In Africa and the Middle East theoutlook remains negative. In Japan the market remains relatively weak and for 1999 theindustry is expected to remain close to 1998 levels. China andIndia continue to register solid growth due to infrastructurework. The recovery in most of the remaining markets of Asia isproceeding somewhat faster than expected. Certain information included in this release is forward-looking and is subject to important risks and uncertainties thatcould cause actual results to differ materially. The Company'sbusinesses include its agricultural and construction equipmentoperations as well as its financial services operations, and itsoutlook is predominantly based on its interpretation of what itconsiders to be the key economic factors affecting thesebusinesses. Forward-looking statements with regard to theCompany's businesses involve a number of important factors thatare subject to change, including: the many interrelated factorsthat affect farmers' confidence, including world-wide demand foragricultural products, world grain stocks, commodities prices,weather, animal diseases, crop pests, harvest yields, real estatevalues and governmental farm programs; general economicconditions (including housing starts); legislation, particularlythat relating to agriculture, the environment, trade and commerceand infrastructure development; actions of competitors in thevarious industries in which the Company competes; productiondifficulties, including capacity and supply constraints andexcess inventory levels; labor relations; interest rates andcurrency exchange rates; political and civil unrest; and otherrisks and uncertainties. New Holland is a world leader in the design and manufacture ofa full line of agricultural and construction equipment, andoffers a rapidly expanding line of financial services in many ofits markets. The Company and its joint venture partners operatein 160 countries through a network of approximately 6,100 dealersand distributors.

New Holland N.V.

Consolidated Statements of Income (IAS) (Unaudited)

(in millions of dollars, except per share amounts) CONSOLIDATED EQUIPMENT OPERATIONS** FINANCIAL SERVICES For the 3 months

For the 3 months For the 3 months ended Sept. 30,

ended Sept. 30, ended Sept. 30, 1999

1998*

1999

1998

1999

1998* Net Sales and Revenues: Net sales of equipment 1,240.5 1,214.6 1,240.5 1,214.6

--

-- Finance and interest inc. 67.0

62.8

--

--

92.5

97.9 Total net sales and revenues 1,307.5 1,277.4 1,240.5 1,214.6

92.5

97.9 Costs and Expenses: Cost of goods sold 982.3

942.1

982.3

942.1

--

-- R&D expenses 42.9

37.6

42.9

37.6

--

-- SG&A expenses 187.2

171.1

172.9

163.1

14.9

10.6 Net finance and interest exp. 53.9

52.5

22.7

22.3

56.1

62.7 Other expenses (income), net (1.2)

(6.2)

(2.6)

(7.7)

1.4

1.5 Total cost and expenses 1,265.1 1,197.1 1,218.2 1,157.4

72.4

74.8 Income from unconsolidated subs. and affiliates - Fin. Serv. subs.

and aff. 0.3

(0.1)

14.2

14.1

0.3

(0.1) - Other

affiliates 4.4

6.1

4.4

6.1

--

-- Income before tax, min. int. 47.1

86.3

40.9

77.4

20.4

23.0 Prov. for income taxes 7.6

29.1

1.4

20.2

6.2

8.9 Minority interest 0.4

0.6

0.4

0.6

--

-- Net income 39.1

56.6

39.1

56.6

14.2

14.1 Net income per share

0.26

0.38 Shares outstanding (mil)

149

149 Reconciliation with US GAAP Net income

39.1

56.6 Items increasing (decreasing) reported net income: Goodwill amortization (0.8)

(0.8) Reduction in depr. of PP&E 0.3

0.3 Restruct. reserves reversal

--

(3.0) Adjust. to pension reserves --

(1.2) Reversal of change in acc. princ. - post-retirement benefits

(2.2)

(2.2) Net income (US GAAP)

36.4

49.7 EPS (US GAAP) 0.25

0.33 Shares outstanding (mil)

149

149 * Certain 1998 amounts have been reclassified to conform to

present year presentation ** Equipment Operations includes Financial Services on theequity

basis.

New Holland N.V.

Consolidated Statements of Income (IAS) (Unaudited)

(in millions of dollars, except per share amounts) CONSOLIDATED EQUIPMENT OPERATIONS** FINANCIAL SERVICES For the 9 months

For the 9 months For the 9 months ended Sept. 30,

ended Sept. 30, ended Sept. 30, 1999

1998*

1999

1998

1999

1998* Net Sales and Revenues: Net sales of equipment

4,082.1 4,316.8 4,082.1 4,316.8

--

-- Finance and interest inc. 185.5

170.9

--

--

264.9

276.0 Total net sales and revenues 4,267.6 4,487.7 4,082.1 4,316.8

264.9

276.0 Costs and Expenses: Cost of goods sold 3,179.9 3,270.5 3,179.9 3,270.5

--

-- R&D expenses 127.5

110.4

127.5

110.4

--

-- SG&A expenses 550.5

513.6

510.2

482.4

42.5

33.9 Net finance and interest exp. 142.0

134.2

67.1

67.1

152.1

169.5 Other expenses (income), net 1.0

(3.6)

(3.8)

(8.6)

4.8

5.0 Total cost and expenses 4,000.9 4,025.1 3,880.9 3,921.8

199.4

208.4 Income from unconsolidated subs. and affiliates - Fin. Serv. subs.

and aff. 0.7

0.2

43.0

38.2

0.7

0.2 - Other

affiliates 12.1

4.0

12.1

4.0

--

-- Income before tax,

min. int. and

cum. effect

of change in

accounting

principle 279.5

466.8

256.3

437.2

66.2

67.8 Prov. for

income taxes 86.6

156.9

63.4

130.5

23.2

26.4 Minority interest 2.1

2.0

2.1

2.0

--

-- Net income before cum. effect of change in acc. principle 190.8

307.9

190.8

304.7

43.0

41.4 Cumulative effect of change in accounting principle --

260.4

--

263.6

--

(3.2) Net income 190.8

568.3

190.8

568.3

43.0

38.2 Net income per share, before cum effect of change in accounting princ.

1.28

2.07 Net income per share of cum. effect of change in accounting princ.

--

1.74 Net income per share

1.28

3.81 Shares outstanding (mil)

149

149 Reconciliation with US GAAP Net income

190.8

568.3 Items increasing (decreasing) reported net income: Goodwill amortization (2.4)

(2.4) Reduction in depr. of PP&E 1.0

1.0 Restruct. reserves reversal

--

(9.0) Adjust. to

pension

reserves

--

(3.2) Reversal of change in acc. princ. - post-retirement benefits

(6.8)

(6.8) Reversal of change in acc. princ. deferred taxes --

(260.4) Net income (US GAAP)

182.6

287.5 EPS (US GAAP) 1.23

1.93 Shares outstanding (mil)

149

149 * Certain 1998 amounts have been reclassified to conform to

present year presentation. ** Equipment Operations includes Financial Services on theequity

basis.

New Holland N.V.

Condensed Consolidated Balance Sheet (IAS)

($ millions) CONSOLIDATED EQUIPMENT OPERATIONS** FINANCIAL SERVICES Sep 30

Dec 31

Sep 30

Dec 31

Sep 30

Dec 31 1999

1998

1999

1998

1999

1998 ASSETS Cash and cash

equivalents 705.6

676.7

661.6

587.5

44.0

89.2 Finance receivables 2,640.3 2,320.9

370.5

505.0 2,428.6 2,320.0 Trade and other receivables 1,197.2 1,194.8

991.9

828.3

219.5

376.0 Inventories 1,290.6 1,518.0 1,280.2 1,512.1

10.4

5.9 Property, plant and equipment, net 684.0

779.6

646.8

757.7

37.2

21.9 Investments in uncons. subs. and affiliates 213.9

215.3

566.9

517.2

7.1

6.4 Other assets 96.2

175.5

80.1

151.8

43.9

44.9 Deferred tax assets, net 214.6

224.6

216.2

226.2

--

-- Total assets 7,042.4 7,105.4 4,814.2 5,085.8 2,790.7 2,864.3 LIABILITIES AND SHAREHOLDERS' EQUITY Short term borrowings 1,948.8 1,765.2

611.7

582.8 1,495.9 1,686.5 Accounts payable

834.6

899.3

834.3

898.8

3.3

0.5 Accrued expenses and def. income 911.8 1,020.8

924.2 1,028.7

26.6

22.8 Accrued income taxes 104.0

78.5

102.3

78.5

3.3

1.6 Medium and long term borrowings 1,004.1

927.6

113.9

95.0

890.2

832.6 Retirement benefit accruals 615.9

653.0

604.6

641.5

11.3

11.5 Other liabilities 110.1

141.4

110.1

140.9

--

0.5 Total liabilities 5,529.3 5,485.8 3,301.1 3,466.2 2,430.6 2,556.0 Minority interest 63.7

73.2

63.7

73.2

--

-- Shareholders' equity 1,449.4 1,546.4 1,449.4 1,546.4

360.1

308.3 Total liabilities and shareholders' equity 7,042.4 7,105.4 4,814.2 5,085.8 2,790.7 2,864.3 Reconciliation with US GAAP Shareholders'equity in accordance with IAS

1,449.4 1,546.4 Reinstatement of goodwill previously charged to equity

189.4

191.8 Elimination of fixed assets revaluation

(21.0)

(20.6) Reversal of change in acc. princ. - post-retirement benefits (FAS 106)

75.5

82.3 Reversal of cum. acc. change for postretirement benefits (IAS 19 revised)

60.2

-- Shareholders' equity in accordance with US GAAP 1,753.5 1,799.9 * Equipment Operations includes Financial Services on theequity

basis.

New Holland N.V.

Net Sales of Equipment

($ millions)

For the 3 months ended September 30

1999

1998 % Change By Product Line Agricultural Equipment (a)

621.3

695.2

-11% Construction Equipment

372.6

283.9

+31% Replacement Parts

246.6

235.5

+ 5% Total

1,240.5 1,214.6

+ 2% By Geographic Area (b) Europe

621.9

521.7

+19% North America

406.5

427.1

- 5% Brazil

47.6

92.3

-48% Rest of World

164.5

173.5

- 5% Total

1,240.5 1,214.6

+ 2%

For the 9 months ended September 30

1999

1998 % Change By Product Line Agricultural Equipment (a) 2,265.4 2,792.2

-19% Construction Equipment

1,113.4

875.9

+27% Replacement Parts

703.3

648.7

+ 8% Total

4,082.1 4,316.8

- 5% By Geographic Area (b) Europe

2,072.3 1,728.1

+20% North America

1,350.5 1,771.2

-24% Brazil

172.7

282.2

-39% Rest of World

486.6

535.3

- 9% Total

4,082.1 4,316.8

- 5% (a) Includes commission on sales of OEM units. (b) Includes sales of equipment and parts made in theirdomestic markets by New Holland companies located in suchmarkets, plus exports from other New Holland companies in suchcountries. ots Original Text Service: New Holland N.V. Internet:http://www.newsaktuell.de Contact: Jeffrey Walsh, media, +44-181-479-8809, or fax, +44-181-479-8626, or jwalsh@newholland.com,or Albert Trefts, Jr., investors, +44-181-479-8606, or fax, +44-181-479-8658, or atrefts@newholland.com, both of New Holland

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.

PROTEXT