CNH's net income up 122% year-over-year to US$320M on improved top line, lower tax rate; net sales up 24% to US$4.90B on favorable trading conditions for agricultural equipment, higher demand for construction equipment

BURR RIDGE, Illinois , July 25, 2011 (press release) – -- Net Sales increase 24% to $4.9 billion
-- Agricultural equipment +22% to $3.9 billion
-- Construction equipment +30% to $1 billion
-- Equipment Operations Operating Profit of $521 million, an increase of 58%
-- Operating Margin increased to 10.7% compared to 8.4% in Q2 2010
-- EPS before exceptional items at $1.33 per share, compared to $0.59 per share in 2010

        
                                                       Quarter Ended
                                                --------------------------
                                                  6/30/2011     6/30/2010   Change
                                                ------------  ---------------------
                          (US $ in millions, except per share data and percentages)
        Net Sales of Equipment                  $      4,881  $      3,938       24%
        Equipment Operations Operating Profit   $        521  $        330       58%
        Equipment Operations Operating Margin           10.7%          8.4% 2.3 pts
        Financial Services Net Income           $         52  $         33       58%
        Net Income Attributable to CNH          $        320  $        144      122%
        Net Income Before Restructuring and
         Exceptional Items                      $        320  $        140      129%
        Diluted EPS Before Restructuring and
         Exceptional Items                      $       1.33  $       0.59      125%
        
        
        
        


CNH Global N.V. today announced financial results for the quarter ended June 30, 2011. For the quarter, net sales increased 24% (18% on a constant currency basis) to $4.9 billion as a result of favorable trading conditions for agricultural equipment, as well as higher comparative construction equipment demand in every region. Equipment Operations posted an Operating Profit of $521 million as a result of higher revenues, increased industrial utilization and improved product pricing.

Net equipment sales for the quarter were 79% agricultural equipment and 21% construction equipment. The geographical distribution of revenue for the period was 42% North America, 35% EAME & CIS, 15% Latin America, and 8% APAC markets.

Year to date capital expenditures totaled $126 million, a 40% increase from the comparable prior period largely as a result of new product launches in both the agricultural and construction equipment segments; 71% of the capital spend was on new products and production capacity in the period. Equipment Operations generated $232 million of operating cash flow during the first six months of the year as net sales levels and operating performance more than offset the increased net working capital needed to support business activity. CNH's Equipment Operations ended the period with a net cash position of $2.4 billion. The 34% effective tax rate for the second quarter of 2011 (49% second quarter of 2010) is within the Group's full year expectations of 32% to 38%.

Net income before restructuring and exceptional items for the quarter was $320 million as a result of improved top line and industrial operating performance, improved results from the Group's unconsolidated subsidiaries, and a lower tax rate. This resulted in the Group generating a significant increase in diluted earnings per share to $1.33 (before restructuring and exceptional items) compared to $0.59 per share in the comparable period of 2010.

On April 26, CNH announced its plans to set up a local manufacturing site in Cordoba, Argentina for the production of combines and tractors for the Latin American market. The initial investment of over $100 million will include the launch of new, localized product lines and the expansion of the Fiat Industrial complex in Cordoba.

2011 Full Year Market Outlook Demand in the agricultural and construction equipment markets is expected to remain firm for the balance of 2011 on the back of 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.

FY 2011 World Wide Unit Growth Forecast Agricultural equipment demand up 5% to 10% Construction equipment demand up 25% to 30%

2011 CNH Earnings Outlook: On the back of the year to date operating performance, and in view of the outlook for its markets for the balance of 2011, the CNH Group is upgrading its full year financial targets as follows: full year revenue growth of 15-20% and an operating margin at the upper end of its previously disclosed range of 7.1% to 7.9%.

SEGMENT RESULTS Agricultural Equipment

        
                                                 Quarter Ended
                                        ------------------------------
                                           6/30/2011       6/30/2010       Change
                                        -------------------------------------------
                                             (US $ in millions, except percentages)
        Net Sales of Equipment          $        3,851  $        3,148           22%
        Gross Profit                    $          850  $          644           32%
        Gross Margin                              22.1%           20.5%     1.6 pts
        Operating Profit                $          496  $          317           56%
        Operating Margin                          12.9%           10.1%     2.8 pts
        
        
        
        


Agricultural Equipment Industry and Market Worldwide agricultural industry unit sales increased 13% compared to the second quarter of 2010. Global tractor sales grew 13% while global combine sales grew 17% for the quarter. North American tractor sales were down 3%, with the high horsepower 4WD class up 1%, and combine sales were down 14%, partially offsetting the strong market growth of the first quarter, and maintaining a 7% growth on a year to date basis. Latin America sales of tractors decreased 5% and combine sales increased 58%. EAME & CIS markets improved for the quarter, with tractor and combine sales up 30%. APAC markets were up 15% in tractor sales and flat in combine sales.

CNH Agricultural Equipment Second Quarter Results CNH's net sales in the agricultural equipment sector increased 22% for the quarter (16% on a constant currency basis) as a result of solid trading conditions in every region. Net sales in the EAME & CIS markets continued their positive growth trajectory with comparative reported revenue up 40% on the back of firm demand across all product segments. As a result of this increased unit volume in Europe and the CIS, comparative industrial capacity utilization increased driving positive cost absorption. This benefit coupled with improved price realization and favorable product mix (to larger horsepower tractor and combine segments) resulted in a 2.8 percentage point increase in comparative operating margin to 12.9% for the period.

Second quarter tractor market share performance was in line with the overall market growth as a result of a positive performance in Europe, and in the important over 40 hp segment in North America driven by very good market response to the introduction of high horsepower tractors and combines equipped with the FPT Selective Catalytic Reduction (SCR) Tier 4A/Stage IIIB engines delivering increased power and reduced fuel consumption and overall operating costs compared to equivalent CNH Tier 3 equipment. Combine market share recovered in the second quarter in the North American and EAME & CIS regions. Industrial production and retail sales were closely aligned during the period with resulting company and dealer inventory levels remaining largely unchanged.

In Latin America, New Holland Agriculture launched the new CR6080, the only class 6 combine manufactured in Brazil, equipped with a 300 hp engine, a 9,000 liters grain tank and the segment's largest cab. The brand also introduced the new T8 tractor range, from 273 to 389 hp, the industry's highest horsepower tractors produced in Brazil, focused on cash grain and sugar cane business and equipped with the SideWinder II armrest with fully integrated ergonomic controls for precision farming solutions, as well as the TL Exitus tractor ideal for spraying applications. The New Holland product offering has been expanded by the new SP3500 sprayer. In Europe the brand introduced a new hydraulic Powershuttle transmission on the TD5000 tractor, ideal for loader work and for fast directional changes.

In North America, Case IH began shipments of Tier 4A/Stage IIIB compliant Steiger/Quadrac 550-600 hp series tractors with best-in-class fuel efficiency and hydraulic flow, as well as the Module Express 635 Cotton Picker now equipped with a 400 hp engine. In addition, Case IH sugar cane harvesters were honored with the 'Top of Mind' award by the Brazilian trade publication Revista Rural. In Europe, the Steyr Tractor brand launched the Kompakt S series, while Case IH launched the AFS Pro model 700 monitors in all EfficientPower tractor models.

The Case IH Puma CVX EP and the New Holland T8.390 are two of the finalists for the 'Tractor of the Year 2012' award assigned by a panel of industry magazines representing 20 European countries.

Construction Equipment

        
                                                 Quarter Ended
                                        ------------------------------
                                           6/30/2011       6/30/2010      Change
                                        -------------------------------------------
                                             (US $ in millions, except percentages)
        Net Sales of Equipment          $        1,030  $          790           30%
        Gross Profit                    $          138  $          117           18%
        Gross Margin                              13.4%           14.8%    -1.4 pts
        Operating Profit                $           25  $           13           92%
        Operating Margin                           2.4%            1.6%     0.8 pts
        
        
        
        


Construction Equipment Industry and Market Global construction equipment industry unit sales rose 24% in the second quarter compared to the prior year, with light equipment up 29% and heavy equipment up 20%. North American demand was up 37%, for both light and heavy equipment. EAME & CIS markets rose 33% as the industry continued to rebuild from the prior year's low levels. In Latin America, the market was up 27%, driven by strong demand from projects in both the public and private sectors. Industry sales in APAC markets grew 16%.

CNH Construction Equipment Second Quarter Results Second quarter 2011 net sales in the construction equipment sector grew 30% (24% on a constant currency basis) as a result of market improvements in every region and in particular in the North American market. Operating profit improved 92% for the quarter to $25 million as a result of unit demand of newly launched products in the light and heavy equipment segments, increased industrial utilization, and positive comparative pricing. This positive performance was more than enough to offset the impact of tight supply conditions of Japanese supplied components and wholegoods during the quarter negatively impacting equipment availability and industrial efficiency. The Group expects that this situation will improve over the balance of the year.

Second quarter market share was down in light equipment due to low inventory levels as a result of slower than expected introduction of new key products started in the previous quarters. In the month of June, retail sales of these new products have increased and the Company believes that this trend will continue in the second half of the year leading to a more normalized share position. The Company maintained its market share in the heavy equipment segment.

Company and dealer inventories ended the period higher than in the first quarter as production rates of newly launched products continued to improve allowing the company to begin to restock the dealer network from low levels in the first quarter.

During the second quarter of 2011 Case Construction launched the new locally manufactured B-series motor graders in the Latin American markets. In North America the Case 850L crawler dozer, the Case 580M loader/backhoe, the Case 440 Series 3 skid steer loader and the Case 621E wheel loader were recognized as "Contractor's Choice" machines for 2011 by Road & Bridges magazine.

New Holland Construction launched its new 200 Series of skid steer loaders (SSL) and compact track loaders (CTL), for a total of nine SSL and three CTL in the African, Middle East and CIS markets. The 200 Series features both radial-lift and vertical-lift models to better satisfy contractors' needs.

CNH Financial Services Second Quarter Results

        
                                                     Quarter Ended
                                           ----------------------------------
                                               6/30/2011        6/30/2010    Change
                                           ----------------------------------------
                                             (US $ in millions, except percentages)
        Net Income                         $             52 $             33     58%
        On-Book Asset Portfolio            $         15,642 $         14,519      8%
        Managed Asset Portfolio            $         18,449 $         16,998      9%
        
        
        
        


Net Income attributable to Financial Services was $52 million for the quarter, compared with $33 million in the comparable period of 2010. Financial Services generated improved financial margins on a higher average portfolio as a result of increased industrial unit sales and improved funding costs. Risk cost provisions were lower as past due amounts continued to decline.

Compared to December 31, 2010, delinquent receivables greater than 30 days past due amounts declined to 4.5% of the total managed portfolio, an improvement of 0.7 percentage points. Past dues have improved 1.5 percentage points compared to June 30, 2010.

Unconsolidated Equipment Operations' Subsidiaries Second quarter results for the Group's unconsolidated Equipment Operations' subsidiaries improved to $35 million compared with $21 million in the comparable period of 2010. The major contributors were Turk Tractor (Turkey), Al Ghazi (Pakistan), and the Group's two joint ventures in Japan.

Equipment Operations Cash Flow and Net Debt

        
                                                             Year to Date
                                                  ---------------------------------
                                                     6/30/2011         6/30/2010
                                                  ---------------------------------
                                                          (US $ in millions)
        Net Income                                $           464  $            149
        Depreciation & Amortization                           155               137
        Cash Change in Working Capital*                      (496)              478
        Other                                                 109               507
                                                  ---------------  ----------------
        Net Cash (Used) Provided by Operating
         Activities                                           232             1,271
        Net Cash (Used) by Investing Activities**            (177)              (84)
        All Other                                             164                53
                                                  ---------------  ----------------
        Increase/(Decrease) in Net (Cash)         $           219  $          1,240
                                                  ---------------  ----------------
        Net (Cash)                                $        (2,414) $         (1,770)
        
        
        


* Net cash change in receivables, inventories and payables including inter-segment receivables and payables. ** Excluding Net (Deposits In)/Withdrawals from Fiat or Fiat Industrial Cash Management Systems, as they are a part of Net (Cash).

ABOUT CNH CNH Global N.V. is a world leader in the agricultural and construction equipment businesses. Supported by approximately 11,300 dealers in approximately 170 countries, CNH brings together the knowledge and heritage of its Case and New Holland brand families with the strength and resources of its worldwide commercial, industrial, product support and finance organizations. CNH Global N.V., whose stock is listed at the New York Stock Exchange /quotes/zigman/322236/quotes/nls/cnh CNH +9.33% , is a majority-owned subsidiary of Fiat Industrial S.p.A. (FI.MI). More information about CNH and its Case and New Holland products can be found online at www.cnh.com .


        
                                       CNH GLOBAL N.V.
                       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                AND SUPPLEMENTAL INFORMATION
                      For the Three Months Ended June 30, 2011 and 2010
                                         (Unaudited)
        
                                                       Equipment        Financial
                                   Consolidated       Operations         Services
                                 ----------------  ----------------  ---------------
                                   Three Months      Three Months      Three Months
                                  Ended June 30,    Ended June 30,    Ended June 30,
                                 ----------------  ----------------  ---------------
                                   2011     2010     2011     2010     2011    2010
                                 -------  -------  -------  -------  ------- -------
                                         (in millions, except per share data)
        Revenues:
          Net sales              $ 4,881  $ 3,938  $ 4,881  $ 3,938  $    -- $    --
          Finance and interest
           income                    284      273       44       33      353     343
                                 -------  -------  -------  -------  ------- -------
                                   5,165    4,211    4,925    3,971      353     343
                                 -------  -------  -------  -------  ------- -------
        
        Costs and Expenses:
          Cost of goods sold       3,893    3,177    3,893    3,177       --      --
          Selling, general and
           administrative            455      431      342      319      113     112
          Research, development
           and engineering           125      112      125      112       --      --
          Interest expense           203      190      100       78      140     151
          Interest compensation
           to Financial Services      --       --       76       64       --      --
          Other, net                  67       73       41       39       26      34
                                 -------  -------  -------  -------  ------- -------
         Total                     4,743    3,983    4,577    3,789      279     297
                                 -------  -------  -------  -------  ------- -------
        
         Income before income
          taxes and equity in
          income of
          unconsolidated
          subsidiaries and
          affiliates                 422      228      348      182       74      46
        Income tax provision         142      111      116       96       26      15
        Equity in income of
         unconsolidated
         subsidiaries and
         affiliates:
          Financial Services           4        2       52       33        4       2
          Equipment Operations        35       21       35       21       --      --
                                 -------  -------  -------  -------  ------- -------
         Net income                  319      140      319      140       52      33
        Net loss attributable to
         noncontrolling
         interests                    (1)      (4)      (1)      (4)      --      --
                                 -------  -------  -------  -------  ------- -------
         Net income attributable
          to CNH Global N.V.     $   320  $   144  $   320  $   144  $    52 $    33
                                 =======  =======  =======  =======  ======= =======
        
        
        
        Weighted average shares
         outstanding:
          Basic                      240      238
                                 =======  =======
          Diluted                    241      238
                                 =======  =======
        
        Basic and diluted
         earnings per share
         ("EPS") attributable to
         CNH Global N.V. common
         shareholders:
          Basic EPS              $  1.34  $  0.60
                                 =======  =======
          Diluted EPS            $  1.33  $  0.60
                                 =======  =======
        
        
        
        
        


These Condensed Consolidated Statements of Operations should be read in conjunction with the Company's Audited Consolidated Financial Statements and Notes for the year ended December 31, 2010.

The supplemental Equipment Operations (with Financial Services on the equity basis) data in these statements include CNH Global N.V.'s agricultural and construction equipment operations. The supplemental Financial Services data in these statements include CNH Global N.V.'s financial services business. Transactions between Equipment Operations and Financial Services have been eliminated to arrive at the consolidated data.

        
                                       CNH GLOBAL N.V.
                       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                AND SUPPLEMENTAL INFORMATION
                       For the Six Months Ended June 30, 2011 and 2010
                                         (Unaudited)
        
                                                       Equipment        Financial
                                   Consolidated       Operations         Services
                                 ----------------  ----------------  ---------------
                                 Six Months Ended  Six Months Ended     Six Months
                                     June 30,          June 30,       Ended June 30,
                                 ----------------  ----------------  ---------------
                                   2011     2010     2011     2010     2011    2010
                                 -------  -------  -------  -------  ------- -------
                                         (in millions, except per share data)
        Revenues:
          Net sales              $ 8,678  $ 7,175  $ 8,678  $ 7,175  $    -- $    --
          Finance and interest
           income                    569      556       88       62      692     683
                                 -------  -------  -------  -------  ------- -------
                                   9,247    7,731    8,766    7,237      692     683
                                 -------  -------  -------  -------  ------- -------
        
        Costs and Expenses:
          Cost of goods sold       7,007    5,875    7,007    5,875       --      --
          Selling, general and
           administrative            870      825      663      615      207     210
          Research, development
           and engineering           241      211      241      211       --      --
          Restructuring                3        2        3        2       --      --
          Interest expense           402      392      196      159      279     311
          Interest compensation
           to Financial Services      --       --      138      111       --      --
          Other, net                 104      129       49       71       55      58
                                 -------  -------  -------  -------  ------- -------
         Total                     8,627    7,434    8,297    7,044      541     579
                                 -------  -------  -------  -------  ------- -------
        
        Income before income
         taxes and equity in
         income of
         unconsolidated
         subsidiaries and
         affiliates                  620      297      469      193      151     104
        Income tax provision         222      181      170      156       52      25
        Equity in income of
         unconsolidated
         subsidiaries and
         affiliates:
          Financial Services           7        5      106       84        7       5
          Equipment Operations        59       28       59       28       --      --
                                 -------  -------  -------  -------  ------- -------
        Net income                   464      149      464      149      106      84
        Net loss attributable to
         noncontrolling
         interests                    (8)     (11)      (8)     (11)      --      --
                                 -------  -------  -------  -------  ------- -------
        Net income attributable
         to CNH Global N.V.      $   472  $   160  $   472  $   160  $   106 $    84
                                 =======  =======  =======  =======  ======= =======
        
        
        
        Weighted average shares
         outstanding:
          Basic                      239      238
                                 =======  =======
          Diluted                    241      238
                                 =======  =======
        
        Basic and diluted
         earnings per share
         ("EPS") attributable to
         CNH Global N.V. common
         shareholders:
          Basic EPS              $  1.97  $  0.67
                                 =======  =======
          Diluted EPS            $  1.96  $  0.67
                                 =======  =======
        
        
        
        


These Condensed Consolidated Statements of Operations should be read in conjunction with the Company's Audited Consolidated Financial Statements and Notes for the year ended December 31, 2010.

The supplemental Equipment Operations (with Financial Services on the equity basis) data in these statements include CNH Global N.V.'s agricultural and construction equipment operations. The supplemental Financial Services data in these statements include CNH Global N.V.'s financial services business. Transactions between Equipment Operations and Financial Services have been eliminated to arrive at the consolidated data.

        
                                       CNH GLOBAL N.V
                            CONDENSED CONSOLIDATED BALANCE SHEET
                                AND SUPPLEMENTAL INFORMATION
                          As of June 30, 2011 and December 31, 2010
                                         (Unaudited)
        
                                                     Equipment         Financial
                                  Consolidated       Operations         Services
                               ----------------- ----------------- -----------------
                                 June   December   June   December   June   December
                                 30,       31,     30,      31,       30,      31,
                                 2011      2010    2011     2010     2011      2010
                               -------- -------- -------- -------- -------- --------
                                                   (in millions)
        ASSETS
        Cash and cash
         equivalents           $  1,548 $  3,618 $    949 $  2,934 $    599 $    684
        Deposits in Fiat
         Industrial
         subsidiaries' cash
         management system        3,543       --    3,444       --       99       --
        Deposits in Fiat
         S.p.A. subsidiaries'
         cash management
         system                      --    1,760       --    1,643       --      117
        Accounts, notes
         receivable and other
         - net                   15,434   14,028    1,165      911   14,683   13,495
        Intersegment notes
         receivable                  --       --    2,334    2,273      641      562
        Inventories               3,741    2,937    3,741    2,937       --       --
        Property, plant and
         equipment, net           1,910    1,786    1,908    1,784        2        2
        Equipment on operating
         leases - net               648      622        3        2      645      620
        Investment in
         Financial Services          --       --    2,183    2,007       --       --
        Investments in
         unconsolidated
         affiliates                 484      490      394      407       90       83
        Goodwill and other
         intangibles              3,117    3,064    2,957    2,906      160      158
        Other assets              3,535    3,284    2,196    1,848    1,339    1,436
                               -------- -------- -------- -------- -------- --------
         Total Assets          $ 33,960 $ 31,589 $ 21,274 $ 19,652 $ 18,258 $ 17,157
                               ======== ======== ======== ======== ======== ========
        
        LIABILITIES AND EQUITY
        Short-term debt        $  4,434 $  3,863 $    190 $    125 $  4,244 $  3,738
        Accounts payable          2,983    2,367    3,115    2,586      275      150
        Long-term debt,
         including current
         maturities              12,068   12,434    3,482    3,968    8,586    8,466
        Intersegment debt            --       --      641      562    2,334    2,273
        Accrued and other
         liabilities              6,346    5,545    5,718    5,032      635      522
                               -------- -------- -------- -------- -------- --------
         Total Liabilities       25,831   24,209   13,146   12,273   16,074   15,149
        Equity                    8,129    7,380    8,128    7,379    2,184    2,008
                               -------- -------- -------- -------- -------- --------
         Total Liabilities and
          Equity               $ 33,960 $ 31,589 $ 21,274 $ 19,652 $ 18,258 $ 17,157
                               ======== ======== ======== ======== ======== ========
        
        
        


These Condensed Consolidated Balance Sheets should be read in conjunction with the Company's Audited Consolidated Financial Statements and Notes for the year ended December 31, 2010.

The supplemental Equipment Operations (with Financial Services on the equity basis) data in these statements include CNH Global N.V.'s agricultural and construction equipment operations. The supplemental Financial Services data in these statements include CNH Global N.V.'s financial services business. Transactions between Equipment Operations and Financial Services have been eliminated to arrive at the consolidated data.

        
        
        
                                      CNH GLOBAL N.V.
                      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                AND SUPPLEMENTAL INFORMATION
                      For the Six Months Ended June 30, 2011 and 2010
                                        (Unaudited)
        
                                                     Equipment        Financial
                                 Consolidated       Operations         Services
                               ----------------  ----------------  ----------------
                               Six Months Ended  Six Months Ended  Six Months Ended
                                   June 30,          June 30,          June 30,
                               ----------------  ----------------  ----------------
                                 2011     2010     2011     2010     2011     2010
                               -------  -------  -------  -------  -------  -------
                                                   (in millions)
        Operating activities:
         Net income            $   464  $   149  $   464  $   149  $   106  $    84
         Adjustments to
          reconcile net income
          to net cash (used)
          provided by
          operating
          activities:
          Depreciation and
           amortization            216      198      155      137       61       61
          Intersegment
           activity                 --       --     (234)     (89)     234       89
          Changes in operating
           assets and
           liabilities            (750)     (24)      62    1,127     (812)  (1,151)
          Other, net              (108)    (130)    (215)     (53)       1      (11)
                               -------  -------  -------  -------  -------  -------
        Net cash (used)
         provided by operating
         activities               (178)     193      232    1,271     (410)    (928)
                               -------  -------  -------  -------  -------  -------
        
        Investing activities:
         Expenditures for
          property, plant and
          equipment               (126)     (90)    (126)     (90)      --       --
         Expenditures for
          equipment on
          operating leases        (192)    (174)      --       --     (192)    (174)
         Net collections from
          retail receivables       (38)      98       --       --      (38)      98
         Net (deposits in)
          withdrawals from
          Fiat Industrial/Fiat
          S.p.A. subsidiaries'
          cash management
          systems               (1,702)  (1,369)  (1,727)  (1,376)      25        7
         Other, net                201      133      (51)       6      252      107
                               -------  -------  -------  -------  -------  -------
        Net cash (used)
         provided by investing
         activities             (1,857)  (1,402)  (1,904)  (1,460)      47       38
                               -------  -------  -------  -------  -------  -------
        
        Financing activities:
         Intersegment activity      --       --       53     (642)     (53)     642
         Net decreases in
          indebtedness            (131)   1,391     (438)   1,396      307       (5)
         Other, net                 28     (543)      28     (543)      --     (130)
                               -------  -------  -------  -------  -------  -------
        Net cash (used)
         provided by financing
         activities               (103)     848     (357)     211      254      507
                               -------  -------  -------  -------  -------  -------
        Effect of foreign
         exchange rate changes
         on cash and cash
         equivalents                68      (28)      44      (10)      24      (18)
                               -------  -------  -------  -------  -------  -------
        Decrease in cash and
         cash equivalents       (2,070)    (389)  (1,985)      12      (85)    (401)
         Cash and cash
          equivalents,
          beginning of period    3,618    1,263    2,934      290      684      973
                               -------  -------  -------  -------  -------  -------
        Cash and cash
         equivalents, end of
         period                $ 1,548  $   874  $   949  $   302  $   599  $   572
                               =======  =======  =======  =======  =======  =======
        
        
        
        
        
        



These Condensed Consolidated Statements of Cash Flows should be read in conjunction with the Company's Audited Consolidated Financial Statements and Notes for the year ended December 31, 2010.

The supplemental Equipment Operations (with Financial Services on the equity basis) data in these statements include CNH Global N.V.'s agricultural and construction equipment operations. The supplemental Financial Services data in these statements include CNH Global N.V.'s financial services business. Transactions between Equipment Operations and Financial Services have been eliminated to arrive at the consolidated data.

        
                                       CNH Global N.V.
                               TOTAL DEBT AND NET DEBT (CASH)
         For the Six Months Ended June 30, 2011 and the Year Ended December 31, 2010
                                         (Unaudited)
        
        
                                                    Equipment          Financial
                                Consolidated        Operations          Services
                             ----------------- ------------------- -----------------
                               June   December   June    December    June   December
                               30,       31,      30,       31,       30,     31,
                               2011      2010     2011      2010      2011    2010
                             -------- -------- --------- --------- -------- --------
                                                  (in millions)
        Short-term debt:
          With Fiat
           Industrial
           subsidiaries      $    310 $     -- $     88  $     --  $    222 $     --
          With Fiat S.p.A.
           subsidiaries            --      194       --        43        --      151
          Owed to
           securitization
           investors            2,675    2,488       --        --     2,675    2,488
          Other                 1,449    1,181      102        82     1,347    1,099
          Intersegment             --       --       93        52     1,753    1,730
                             -------- -------- --------- --------- -------- --------
        Total short-term
         debt                   4,434    3,863      283       177     5,997    5,468
                             -------- -------- --------- --------- -------- --------
        Long-term debt:
          With Fiat
           Industrial
           subsidiaries           478       --       72        --       406       --
          With Fiat S.p.A.
           subsidiaries            --      584       --        67        --      517
          Owed to
           securitization
           investors            5,979    5,868       --        --     5,979    5,868
          Other                 5,611    5,982    3,410     3,901     2,201    2,081
          Intersegment             --       --      548       510       581      543
                             -------- -------- --------- --------- -------- --------
        Total long-term debt   12,068   12,434    4,030     4,478     9,167    9,009
                             -------- -------- --------- --------- -------- --------
        Total debt:
          With Fiat
           Industrial
           subsidiaries           788       --      160        --       628       --
          With Fiat S.p.A.
           subsidiaries            --      778       --       110        --      668
          Owed to
           securitization
           investors            8,654    8,356       --        --     8,654    8,356
          Other                 7,060    7,163    3,512     3,983     3,548    3,180
          Intersegment             --       --      641       562     2,334    2,273
                             -------- -------- --------- --------- -------- --------
        Total debt           $ 16,502 $ 16,297 $  4,313  $  4,655  $ 15,164 $ 14,477
                             ======== ======== ========= ========= ======== ========
        Less:
          Cash and cash
           equivalents          1,548    3,618      949     2,934       599      684
          Deposits in Fiat
           Industrial
           subsidiaries'
           cash management
           system               3,543       --    3,444        --        99       --
          Deposits in Fiat
           S.p.A.
           subsidiaries'
           cash management
           system                  --    1,760       --     1,643        --      117
          Intersegment notes
           receivable              --       --    2,334     2,273       641      562
                             -------- -------- --------- --------- -------- --------
        Net debt (cash)      $ 11,411 $ 10,919 $ (2,414) $ (2,195) $ 13,825 $ 13,114
                             ======== ======== ========= ========= ======== ========
        
        
        


Note: Net Debt (Cash) is a non-GAAP financial measure. See description of non-GAAP measures contained in this release.

        
        
        
                                      CNH GLOBAL N.V.
                                  SUPPLEMENTAL SCHEDULES
             For the Three Months and Six Months Ended June 30, 2011 and 2010
                                        (Unaudited)
        
                                  Three Months Ended          Six Months Ended
                                       June 30,                   June 30,
                               ------------------------   ------------------------
                                                    %                          %
                                 2011     2010   Change     2011     2010   Change
                               -------  -------  ------   -------  -------  ------
                                        (in millions, except percentages)
        1. Revenues and net
         sales:
         Net sales
          Agricultural
           equipment           $ 3,851  $ 3,148    22.3%  $ 6,922  $ 5,773    19.9%
          Construction
           equipment             1,030      790    30.4%    1,756    1,402    25.2%
                               -------  -------           -------  -------
           Total net sales       4,881    3,938    23.9%    8,678    7,175    20.9%
         Financial services        353      343     2.9%      692      683     1.3%
         Eliminations and
          other                    (69)     (70)             (123)    (127)
                               -------  -------           -------  -------
         Total revenues        $ 5,165  $ 4,211    22.7%  $ 9,247  $ 7,731    19.6%
                               =======  =======           =======  =======
        
        
        2. Net sales on a
         constant currency
         basis:
        
         Agricultural
          equipment net sales  $ 3,851  $ 3,148    22.3%  $ 6,922  $ 5,773    19.9%
         Effect of currency
          translation             (187)            (5.9)%    (232)            (4.0)%
                               -------  -------           -------  -------
           Agricultural
            equipment net
            sales on a
            constant currency
            basis              $ 3,664  $ 3,148    16.4%  $ 6,690  $ 5,773    15.9%
                               =======  =======           =======  =======
        
         Construction
          equipment net sales  $ 1,030  $   790    30.4%  $ 1,756  $ 1,402    25.2%
         Effect of currency
          translation              (53)            (6.7)%     (72)            (5.1)%
                               -------  -------            ------  -------
           Construction
            equipment net
            sales on a
            constant currency
            basis              $   977  $   790    23.7%  $ 1,684  $ 1,402    20.1%
                               =======  =======           =======  =======
        
           Total Equipment
            Operations net
            sales on a
            constant currency
            basis              $ 4,641  $ 3,938    17.9%  $ 8,374  $ 7,175    16.7%
                               =======  =======           =======  =======
        
        
        


Note: Net sales on a constant currency basis is a non-GAAP financial measure. See description of non-GAAP measures contained in this release.

        
                                      CNH Global N.V.
                                  SUPPLEMENTAL Schedules
                 For the Three and Six Months Ended June 30, 2011 and 2010
                                        (Unaudited)
        
        3. Equipment Operations gross and operating profit and margin:
        
                               Three Months Ended           Six Months Ended
                                     June 30,                    June 30,
                           --------------------------- ---------------------------
                                2011          2010          2011          2010
                           ------------- ------------- ------------- -------------
                                      (in millions, except percentages)
        
        Net sales          $4,881 100.0% $3,938 100.0% $8,678 100.0% $7,175  100.0%
        Less:
          Cost of goods
           sold             3,893  79.8%  3,177  80.7%  7,007  80.7%  5,875   81.9%
                           ------        ------        ------        ------
        Equipment
         Operations gross
         profit               988  20.2%    761  19.3%  1,671  19.3%  1,300   18.1%
        Less:
          Selling, general
           and
           administrative     342   7.0%    319   8.1%    663   7.6%    615    8.6%
          Research and
           development        125   2.6%    112   2.8%    241   2.8%    211    2.9%
                           ------        ------        ------        ------
        Equipment
         Operations
         operating profit  $  521  10.7% $  330   8.4% $  767   8.8% $  474    6.6%
                           ======        ======        ======        ======
        
        Gross profit and
         margin:
          Agricultural
           equipment       $  850  22.1% $  644  20.5% $1,441  20.8% $1,124   19.5%
          Construction
           equipment          138  13.4%    117  14.8%    230  13.1%    176   12.6%
                           ------        ------        ------        ------
        Equipment
         Operations gross
         profit            $  988  20.2% $  761  19.3% $1,671  19.3% $1,300   18.1%
                           ======        ======        ======        ======
        
        Operating profit
         and margin:
          Agricultural
           equipment       $  496  12.9% $  317  10.1% $  759  11.0% $  497    8.6%
          Construction
           equipment           25   2.4%     13   1.6%      8   0.5%    (23)  (1.6)%
                           ------        ------        ------        ------
        Equipment
         Operations
         operating profit  $  521  10.7% $  330   8.4% $  767   8.8% $  474    6.6%
                           ======        ======        ======        ======
        
        
        
        4. Net income and diluted earnings per share before restructuring and
         exceptional items:
        
                                          Three Months Ended     Six Months Ended
                                                June 30,             June 30,
                                          -------------------  --------------------
                                             2011      2010       2011       2010
                                          --------- ---------  ---------  ---------
                                             (in millions, except per share data)
        
        Net income attributable to CNH    $     320 $     144  $     472  $     160
                                          --------- ---------  ---------  ---------
        Restructuring:
          Restructuring, net of tax              --        --          2          2
        Exceptional items:
          (Gain) on purchase/sale of
           business, net of tax                  --        (4)       (16)        (4)
          Tax charge for Medicare Part D
           retiree drug subsidy                  --        --         --         20
                                          --------- ---------  ---------  ---------
        Net income before restructuring
         and exceptional items            $     320 $     140  $     458  $     178
                                          ========= =========  =========  =========
        Weighted average common shares
         outstanding - diluted                  241       238        241        238
                                          ========= =========  =========  =========
        Diluted earnings per share before
         restructuring and exceptional
         items                            $    1.33 $    0.59  $    1.90  $    0.75
                                          ========= =========  =========  =========
        
        
        
                                       CNH GLOBAL N.V.
                                   SUPPLEMENTAL SCHEDULES
                           For the Six Months Ended June 30, 2011
                                         (Unaudited)
        
        5. Equipment Operations cash generated from working capital
        
                         Balance as                           Balance as     Cash
                             of      Effect of                    of      Generated
                         December     Foreign                   June         from
                            31,       Currency    Non-Cash       30,       Working
                            2010    Translation Transactions     2011      Capital
                        ----------- ----------- ------------ ----------- -----------
                                                (in millions)
        
        Accounts, notes
         receivable and
         other - net -
         Total          $      911  $      (46) $       (36) $    1,165  $     (172)
        Inventories          2,937        (146)         (24)      3,741        (634)
        Accounts
         payable -
         Total              (2,586)        160           59      (3,115)        310
                        ----------- ----------- ------------ ----------- -----------
        Working Capital $    1,262  $      (32) $        (1) $    1,791  $     (496)
                        =========== =========== ============ =========== ===========
        

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