CNH Improves Revenue

CNH Global N.V. announced its financial results for the second quarter, which ended June 30, 2010. For the quarter, net sales increased 10.7% to $3.9 billion as positive performance in the Americas and Rest of World markets more than offset difficult economic conditions in Western and Eastern Europe.

Agricultural Equipment
                                 Quarter Ended      Percent
(US$ in millions)             6/30/2010  6/30/2009   Change
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Net Sales of Equipment        $   3,148  $   3,011      4.5%
Gross Profit                  $     644  $     523     23.1%
Gross Margin                      20.5%      17.4%     3.1pts
Operating Profit              $     317  $     255     24.3%
Operating                         10.1%       8.5%     1.6

Equipment Operations posted an Operating Profit of $330 million as a result of higher volumes, better pricing and reduced industrial costs. Operating profit improved $169 million at a margin of 8.4%. The segmental Net Sales split was 80% agricultural equipment and 20% construction equipment, largely in line with the comparable period of 2009, on a constant currency basis.

The geographical distribution of revenue for the period was 42% North America, 24% Western Europe, 17% Latin America, and 17% Rest of World. The Group’s ability to access the global agricultural and construction equipment markets through its dispersed manufacturing and dealership networks allowed CNH to increase revenues. Equipment Operations generated $1.3 billion in cash flow from operating activities in the first half. This was used to finance capital expenditures of $90 million with the balance reducing group indebtedness.