UPDATE 2-CNH Q2 net rises 52 pct, raises outlook; shares up

(Adds analyst comment, stock reaction, byline)

By James B. Kelleher

CHICAGO, July 23 (Reuters) - Farm equipment maker CNH Global NV (CNH.N) said on Wednesday that its earnings in the latest quarter jumped 52 percent as surging commodity prices encouraged farmers worldwide to buy new tractors and combines.

The company also raised its forecast for full-year earnings, sending its shares soaring more than 30 percent.

CNH, which is controlled by Italian automaker Fiat SpA (FIA.MI), reported a second-quarter net profit of $347 million, or $1.46 a share, up from $228 million, or 96 cents a share a year ago.

Profit for the second quarter was $1.48 a share, before restructuring and after tax.

Sales rose 29 percent to $5.28 billion.

Analysts on average were expecting CNH, which also makes construction equipment, to earn $1.15 a share before special items, on revenue of $4.92 billion, according to Reuters Estimates.

In a note to investors, Ann Duignan, an analyst at JP Morgan, called the results, which were released overnight, a "clean beat" and said the "strength in agriculture bodes well for Deere and Agco."

The shares of both Deere & Co (DE.N), the world's largest maker of tractors and combines, and rival Agco Corp AG.N, also rose on the news, even as the broader U.S. stock market fell.

CNH also raised the lower end of its profit outlook for 2008, despite the dismal building market in North America and a weakening construction environment in Europe.

CNH now expects to earn $3.40 to $3.60 a share for the year, before restructuring and after tax, compared with its earlier forecast of $3.30 to $3.60 a share.

The company forecast revenue growth of about 25 percent for 2008.

Analysts expect earnings of $3.32 a share, before items, on revenue of $18.05 billion for the year.

CNH shares were last up about 29 percent, or $8.97, at $39.97 on the Big Board after earlier trading as high as $40.50. (Additional reporting by Varsha Tickoo; Editing by Andre Grenon)