SOURCE: CNH

CNH

April 30, 2013 08:06 ET

CNH First Quarter 2013 EPS Increases 20% to $1.33 on Net Sales of $4.7 Billion

BURR RIDGE, IL--(Marketwired - Apr 30, 2013) - CNH Global N.V. (NYSE: CNH)

  • First quarter Net Sales of $4.7 billion +1% (+3% constant currency basis)
    • Agricultural equipment net sales of $3.9 billion +9% (+11% constant currency basis)
    • Construction equipment net sales of $754 million -26% (-24% constant currency basis)
  • First quarter Equipment Operations' Operating Profit of $443 million, margin of 9.4% for the period
  • First quarter diluted EPS (before restructuring and exceptional items) attributable to CNH common shareholders $1.33 per share, compared to $1.11 per share in 2012
           
  Quarter Ended        
  3/31/2013     3/31/2012     Change
  (US $ in millions, except per share data and percentages)  
Net Sales of Equipment $ 4,697     $ 4,639     1 %
Equipment Operations Operating Profit $ 443     $ 406     9 %
Equipment Operations Operating Margin   9.4 %     8.8 %   0.6 pts  
Net Income Attributable to Fin. Services $ 90     $ 73     23 %
Net Income Attributable to CNH $ 326     $ 269     21 %
Net Income Before Restructuring and Exceptional Items $ 326     $ 269     21 %
Diluted EPS Before Restructuring and Exceptional Items $ 1.33     $ 1.11     20 %
                     

CNH Global N.V. (NYSE: CNH) today announced financial results for the quarter ended March 31, 2013. Net sales for the quarter increased 1% (3% on a constant currency basis) to $4.7 billion. Equipment Operations posted an operating profit of $443 million or 9.4% of net sales for the quarter, as increased volumes and positive net pricing in the agricultural segment compensated for the reduction in volume in the construction segment, higher selling general and administrative expenditures and research and development expense. The 31% effective tax rate for the quarter is within the Group's full year 2013 forecast range of 31% to 34%.

Equipment net sales in the quarter comprised 84% agricultural equipment and 16% construction equipment. The geographic distribution of net sales in the quarter was 44% North America, 30% EAME & CIS, 19% Latin America, and 7% APAC markets.

Equipment Operations used $146 million in cash in the quarter, a 71% improvement from the first quarter of 2012. This improvement is a result of the increase in earnings for the period coupled with a reduced working capital build compared to the prior year. Capital expenditures totaled $84 million, as the Company continues to implement its strategic plan of investments in new manufacturing sites. Capital expenditures for new product launches (inclusive of interim and final Tier 4 emission compliant equipment) represented 30% of the total CAPEX in the quarter. CNH's Equipment Operations ended the period with a net cash position of $2.7 billion.

Net income, before restructuring and exceptional items, was $326 million for the quarter, an increase of 21%, driven by continued solid market conditions in the agricultural sector, satisfactory industrial performance, and improved results by the Group's financial services business. This resulted in the Group generating diluted earnings per share of $1.33 (before restructuring and exceptional items), up 20% compared to $1.11 per share for the first quarter of 2012.

2013 Full Year Market Outlook

  • Agricultural equipment unit volume is expected to be flat to down 5%
  • Construction equipment unit volume is expected to be down 5 to 10%

CNH Guidance For The Full Year 2013

  • Revenues up ~5%
  • Operating Margin between 8.5% and 9.0%

SEGMENT RESULTS
Agricultural Equipment

                 
  Quarter Ended        
  3/31/2013     3/31/2012     Change
  (US $ in millions, except percentages)  
Net Sales of Equipment $ 3,943     $ 3,615     9 %
Gross Profit $ 877     $ 760     15 %
Gross Margin   22.2 %     21.0 %   1.2 pts  
Operating Profit $ 469     $ 372     26 %
Operating Margin   11.9 %     10.3 %   1.6 pts  
                     

CNH Agricultural Equipment First Quarter Results
CNH's agricultural equipment first quarter net sales increased 9% (11% on a constant currency basis) driven by increased volume, positive net pricing, and favorable product mix. All of the Group's geographic regions except APAC reported increased revenue. Operating profit increased by $97 million to $469 million yielding an operating margin of 11.9%, up 1.6 percentage points compared to the first quarter of 2012.

Worldwide agricultural equipment market share performance was in line with the market in tractors and up in combines, despite a reduction in the APAC region for both categories and in the North American combine market where, as anticipated at the end of 2012, the Company's revenues were negatively impacted by the changeover in manufacturing required to transition to a new flagship model.

CNH worldwide production of agricultural equipment was 19% above retail sales in the quarter as the Company increased inventory levels to accommodate the spring and summer selling seasons and the launch of the new combine in North America.

Case IH expanded its Farmall utility tractor offering in North America and Europe with models that meet the demand for rugged, yet comfortable and easy-to-operate equipment that is reliable and cost-effective. Case IH also presented the completely redesigned Precision Disk single-disk air drills, which deliver best-in-class seed placement accuracy for a wide array of crops. The Precision Disk 500T series includes a new smaller 25-foot working width model for smaller farms. In Europe and Australia, Case IH unveiled new features on its Axial-Flow combine lineup, including a redesigned cab -- already recognized as the largest and quietest in the industry -- and a folding auger with an industry-exclusive pivoting spout option. Case IH presented its new LB large square baler series to the European market at the 2013 SIMA fair in Paris and was also introduced in Australia. Both launches follow the baler series' premiere in North America in late 2012.

The Case IH Robo-Sharpener -- the first manually supervised "field-service robot" for sharpening wavy or regular tillage blades on the company's True-Tandem 330 Turbo -- received a Silver Innovation award from the American Society of Agricultural and Biological Engineers (ASABE) at the Ag Connect Expo.

At the SIMA show in Paris, New Holland Agriculture launched the new Tier 4A/Stage IIIB emissions compliant T6 Auto Command tractor range, equipped with continuously variable transmission. The upgraded HorizonCab, also available on the T7 tractor range, offers new features for enhanced comfort, as well as intuitive, and ergonomic use. The Brand also introduced new no-till drill precision seeders for more sustainable farming of medium and large scale farms. In North America, at the World Ag Expo (Tulare, California) and at the National Farm Machinery Show (Louisville, Kentucky), New Holland Agriculture launched several new products: the new P2080 and P2085 disk drills, which ensure precise, uniform seed placement with very low soil disturbance, and the new T4 and T5 series utility tractor, offering outstanding visibility, ergonomic CommandArc controls, an ultra-comfortable VisionView cab and segment leading performance. In Turkey, New Holland presented the new TTJ Series tractor, further consolidating its leadership in the production of specialized orchard tractors. Equipped with 4WD and power shuttle, it offers high performance in a compact size, making it an ideal choice for a variety of small and mid-sized vineyard and orchard applications. In Japan, New Holland launched the Tier 4A/Stage IIIB compliant T7 tractor range, equipped with the advanced Auto Command transmission. New Holland Agriculture launched the two and four-wheel drive TT Compact series in selected southern African countries (Zambia & Zimbabwe). The tractor series combines versatility with powerful performance, exceptional fuel efficiency and ease of use and service.

In North America, the multi-award winning BigBaler large square baler, recently launched in Australia and Turkey, was recognized with the prestigious Good Design award for its innovative styling. The tracked version of T9 4WD tractor was honored with the FinOvation award by Farm Industry News.

Construction Equipment

                 
  Quarter Ended        
  3/31/2013     3/31/2012     Change
  (US $ in millions, except percentages)  
Net Sales of Equipment $ 754     $ 1,024     -26 %
Gross Profit $ 92     $ 155     -41 %
Gross Margin   12.2 %     15.1 %   -2.9 pts  
Operating Profit (Loss) $ (26 )   $ 34     N/A  
Operating Margin   (3.4 )%     3.3 %   -6.7 pts  
                     

CNH Construction Equipment First Quarter Results
CNH's construction equipment first quarter net sales decreased 26% (24% on a constant currency basis) as industry unit demand slowed in every region with light equipment down 8% and heavy down 23% in the quarter. As a result of the weak trading conditions in most major markets and in an effort to match inventory levels with forecasted demand, capacity utilization was reduced during the period. The reduction in revenue combined with lower fixed cost absorption in the period, resulted in an operating loss of $26 million for the quarter.

CNH's worldwide construction equipment market share was in aggregate largely unchanged, with gains in Latin America offset by a reduction in North America and EAME & CIS regions.

Case Construction Equipment introduced its new Tier 4A/Stage IIIB 521F wheel loader in the North American market, offering customers a 12 percent increase in fuel efficiency over the previous E Series model, while delivering faster acceleration and quicker cycle times. During the quarter, Case introduced in North America several Tier 4B/Stage IV emission requirement compliant models, including the Alpha Series skid steer loader, and the next generation of small double drum compaction units, which offer excellent maneuverability and visibility in a compact size, while maintaining the same control features found in heavy asphalt rollers. In Europe, Case Construction Equipment is once again taking the lead in emissions standards with the presentation in March of two Tier 4B/Stage IV midi excavators: the short radius CX75 SR and the conventional CX80C. Case Construction Equipment presented the new F Series wheel loaders and B Series motor graders for the Indian market at the February Bauma Conexpo (bC India) show in Mumbai. Case also introduced the upgraded version of its locally built Case 752 vibratory tandem compactor to further consolidate its market leadership in this segment. In Europe, Southeast Asia, China and the CIS, Case completed the introduction of the 8WX Series wheeled excavators equipped with a three-pump hydraulic system with a dedicated swing pump, a new engine speed/working mode selection dial, a heavy-duty undercarriage and an improved cab.

New Holland Construction began presenting its lineup of Tier 4B/Stage IV emission compliant equipment to the markets with the launch of four new models of its 200 Series skid steer loader in North America, and two models of its E Series midi excavator in Europe. New Holland also completed the introduction of its new crawler excavator range in Europe with three Tier 4A/Stage IIIB compliant short radius models, which feature the patented "integrated Noise and Dust reduction" system. It also presented, in the CIS and Southeast Asia, its new B Series PRO wheeled excavators which feature excellent productivity, heavy lifting and high precision performance. New Holland upgraded its grader offering in Europe with a new low profile cab that eliminates transport limitations when on a flatbed truck.

Financial Services

             
  Quarter Ended      
  3/31/2013   3/31/2012   Change
  (US $ in millions, except percentages)  
Net Income Attributable to Fin. Services $ 90   $ 73   23 %
On-Book Asset Portfolio $ 17,475   $ 15,740   11 %
Managed Asset Portfolio $ 19,669   $ 18,211   8 %
                 

CNH Financial Services First Quarter Results
First quarter net income attributable to Financial Services increased 23% to $90 million compared with $73 million in the first quarter of 2012. Increased results were primarily due to a higher average portfolio and a lower provision for credit losses.

At March 31, 2013, delinquent receivables greater than 30 days past due were 1.0% of the total managed receivables, down from 1.2% and 1.9% at December 31, 2012 and March 31, 2012, respectively.

CNH Capital LLC
The following is disclosed on behalf of CNH's North American financial services subsidiary, CNH Capital LLC and its consolidated subsidiaries ("CNH Capital").

             
  Quarter Ended      
  3/31/2013   3/31/2012   Change
  (US $ in millions, except percentages)  
Net Income Attributable to CNH Capital LLC $   63   $ 57   11 %
On-Book Asset Portfolio $   12,175   $ 10,823   12 %
Managed Asset Portfolio $   12,214   $ 10,917   12 %
                   
                   

CNH Capital LLC First Quarter Results
First quarter net income attributable to CNH Capital was up 11% primarily due to a higher average portfolio, stronger financial margins and a lower provision for income taxes, partially offset by a higher provision for credit losses.

At March 31, 2013, delinquent receivables greater than 30 days past due were 0.4% of the total managed receivables, down from 0.5% and 0.9% at December 31, 2012 and March 31, 2012, respectively.

Unconsolidated Equipment Operations Subsidiaries
First quarter results for the Group's unconsolidated Equipment Operations subsidiaries were $17 million, down $2 million from the comparable period of 2012.

Equipment Operations Cash Flow and Net Debt

           
  Year to Date  
  3/31/2013     3/31/2012  
  (US $ in millions)  
Net Income $ 328     $ 269  
Depreciation & Amortization   81       76  
Cash Change in Working Capital*   (547 )     (856 )
Other   (8 )     3  
Net Cash (Used) by Operating Activities   (146 )     (508 )
Net Cash (Used) by Investing Activities**   (87 )     (103 )
All Other   (110 )     108  
(Decrease) in Net (Cash) $ (343 )   $ (503 )
Net (Cash) $ (2,677 )   $ (2,228 )
               

* Net cash change in receivables, inventories and payables including inter-segment receivables and payables.
** Excluding Net (Deposits In)/Withdrawals from 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 11,500 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 on the New York Stock Exchange (NYSE: CNH), 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 CONFERENCE CALL AND WEBCAST
CNH management will hold a conference call on April 30, 2013, to review first quarter 2013 results. The conference call webcast will begin at 8:30 a.m. U.S. Central Time (9:30 a.m. U.S. Eastern Time). This call can be accessed through the investor information section of the company's website at www.cnh.com and will be transmitted by CCBN.

NON-GAAP MEASURES
CNH utilizes various figures that are "Non-GAAP Financial Measures" as this term is defined under Regulation G, as promulgated by the SEC. In accordance with Regulation G, CNH has detailed either the computation of these measures from multiple U.S. GAAP figures or reconciled these non-GAAP financial measures to the most relevant U.S. GAAP equivalent in the accompanying tables to this press release. Some of these measures do not have standardized meanings and investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. CNH's management believes these non-GAAP measures provide useful supplementary information to investors in order that they may evaluate CNH's financial performance using the same measures used by our management. These non-GAAP financial measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with U.S. GAAP.

CNH defines "Equipment Operations Gross Profit" as net sales of equipment less costs classified as cost of goods sold. CNH defines "Equipment Operations Operating Profit" as gross profit less costs classified as selling, general and administrative and research and development costs. CNH defines "Equipment Operations Gross Margin" as gross profit as a percent of net sales of equipment. CNH defines "Equipment Operations Operating Margin" as operating profit as a percent of net sales of equipment. "Net Debt (Cash)" is defined as total debt (including intersegment debt) less cash and cash equivalents, deposits in Fiat Industrial subsidiaries' cash management system and intersegment notes receivable. CNH defines "Net income (loss) and diluted EPS before restructuring and exceptional items" as Net income (loss) attributable to CNH, less restructuring charges and exceptional items, after tax. Equipment Operations "working capital" is defined as accounts and notes receivable and other-net, excluding intersegment notes receivables, plus inventories less accounts payable. The U.S. dollar computation of cash generated from working capital, as defined, is impacted by the effect of foreign currency translation and other non-cash transactions. CNH defines the "change in net sales on a constant currency basis" as the difference between prior year actual net sales and current year net sales translated at prior year average exchange rates. Elimination of the currency translation effect provides constant comparisons without the distortion of currency rate fluctuations.

FORWARD-LOOKING STATEMENTS
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release, including statements regarding our competitive strengths, business strategy, future financial position, operating results, budgets, projected costs and plans and objectives of management, are forward-looking statements. These statements may include terminology such as "may," "will," "expect," "could," "should," "intend," "estimate," "anticipate," "believe," "outlook," "continue," "remain," "on track," "goal," or similar terminology.

Our outlook is largely based on our interpretation of what we consider to be relevant economic assumptions and involves risks and uncertainties that could cause actual results to differ (possibly materially) from such forward-looking statements. Macro-economic factors including monetary policy, interest rates, currency exchange rates, inflation, deflation, credit availability and the intervention by governments and non-governmental organizations in an attempt to influence such factors can have a material impact on our customers and the demand for our goods. Crop production and commodity prices are strongly affected by weather and can fluctuate significantly. Housing starts and other construction activity are sensitive to, among other things, credit availability, interest rates and government spending. Some of the other significant factors that may affect our results include general economic and capital market conditions, the cyclical nature of our businesses, customer buying patterns and preferences, the impact of changes in geographical sales mix and product sales mix, foreign currency exchange rate movements, our hedging practices, investment returns, our and our customers' access to credit, restrictive covenants in our debt agreements, actions by rating agencies concerning the ratings on our debt and asset-backed securities and the credit ratings of Fiat Industrial, risks related to our relationship with Fiat Industrial, the effect of the demerger transaction consummated by Fiat pursuant to which CNH was separated from Fiat's automotive business and became a subsidiary of Fiat Industrial, our ability to consummate the pending business combination transaction with Fiat Industrial and to realize the anticipated benefits of such transaction, political uncertainty and civil unrest or war in various areas of the world, pricing, product initiatives and other actions taken by competitors, disruptions in production capacity, excess inventory levels, the effect of changes in laws and regulations (including those related to tax, healthcare, retiree benefits, government subsidies, engine emissions, and international trade regulations), the results of legal proceedings, technological difficulties, results of our research and development activities, changes in environmental laws, employee and labor relations, pension and health care costs, relations with and the financial strength of dealers, the cost and availability of supplies, raw material costs and availability, energy prices, real estate values, animal diseases, crop pests, harvest yields, government farm programs, consumer confidence, housing starts and construction activity, concerns related to modified organisms and fuel and fertilizer costs, and the growth of non-food uses for some crops (including ethanol and biodiesel production). Additionally, our achievement of the anticipated benefits of our margin improvement initiatives depends upon, among other things, industry volumes as well as our ability to effectively rationalize our operations and to execute our brand strategy. Further information concerning factors that could significantly affect expected results is included in our annual report on Form 20-F for the year ended December 31, 2012.

Furthermore, in light of ongoing difficult macroeconomic conditions, both globally and in the industries in which we operate, it is particularly difficult to forecast our results and any estimates or forecasts of particular periods that we provide are uncertain. We can give no assurance that the expectations reflected in our forward-looking statements will prove to be correct. Our actual results could differ materially from those anticipated in these forward-looking statements. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by the factors we disclose that could cause our actual results to differ materially from our expectations. We undertake no obligation to update or revise publicly any forward-looking statements.

 
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND SUPPLEMENTAL INFORMATION
For the Three Months Ended March 31, 2013 and 2012
(Unaudited)
 
             
    Consolidated   Equipment Operations   Financial Services
    Three Months Ended   Three Months Ended   Three Months Ended
    March 31,   March 31,   March 31,
    2013   2012   2013   2012   2013   2012
    (in millions, except per share data)
Revenues:                                
  Net sales   $ 4,697   $ 4,639   $ 4,697   $ 4,639   $ -   $ -
  Finance and interest income     253     260     33     34   317   332
      4,950     4,899     4,730     4,673   317   332
Costs and Expenses:                                
  Cost of goods sold     3,728     3,724     3,728     3,724   -   -
  Selling, general and administrative     421     433     374     360   47   73
  Research, development and engineering     152     149     152     149   -   -
  Restructuring     1     -     1     -   -   -
  Interest expense     154     185     72     88   112   129
  Interest compensation to Financial Services     -     -     67     74   -   -
  Other, net     52     49     21     24   31   25
Total     4,508     4,540     4,415     4,419   190   227
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates     442     359     315     254   127   105
Income tax provision     135     112     94     77   41   35
Equity in income of unconsolidated subsidiaries and affiliates:                                
  Financial Services     3     3     90     73   3   3
  Equipment Operations     17     19     17     19   -   -
Net income     327     269     328     269   89   73
  Net Income (loss) attributable to noncontrolling interests     1     -     2     -   (1)   -
Net income attributable to CNH Global N.V.   $ 326   $ 269   $ 326   $ 269   $ 90   $ 73
Weighted average shares outstanding - Basic:                                
    Common Shares     31     240                    
    Common Shares B     212                          
Weighted average shares outstanding - Diluted:                                
    Common Shares     33     241                    
    Common Shares B     212                          
Basic and diluted earnings per share ("EPS") attributable to Common Shares and Common Shares B:
  Basic EPS for Common Shares and Common Shares B   $ 1.34   $ 1.12                    
  Diluted EPS for Common Shares and Common Shares B   $ 1.33   $ 1.11                    
                                   

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, 2012.

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 SHEETS
AND SUPPLEMENTAL INFORMATION
As of March 31, 2013 and December 31, 2012
(Unaudited)
 
             
    Consolidated   Equipment Operations   Financial Services
    March 31,   Dec. 31,   March 31,   Dec. 31,   March 31,   Dec. 31,
2013   2012   2013   2012   2013   2012
    (in millions)
ASSETS                                    
Cash and cash equivalents   $ 1,482   $ 2,008   $ 768   $ 827   $ 714   $ 1,181
Deposits in Fiat Industrial subsidiaries' cash management system     4,391     4,232     4,212     4,005     179     227
Accounts, notes receivable and other, net     17,228     16,168     1,096     824     16,604     15,812
Intersegment notes receivable     -     -     2,056     2,476     575     554
Inventories     4,212     3,734     4,212     3,734     -     -
Property, plant and equipment, net     2,229     2,220     2,227     2,218     2     2
Equipment on operating leases, net     810     767     -     -     810     767
Investment in Financial Services     -     -     2,405     2,318     -     -
Investments in unconsolidated affiliates     314     345     213     244     101     101
Goodwill and other intangibles     3,051     3,069     2,892     2,909     159     160
Other assets     2,824     2,883     1,720     1,690     1,104     1,193
                                     
  Total Assets   $ 36,541   $ 35,426   $ 21,801   $ 21,245   $ 20,248   $ 19,997
LIABILITIES AND EQUITY                                    
Short-term debt   $ 3,859   $ 3,797   $ 317   $ 361   $ 3,542   $ 3,436
Accounts payable     3,038     2,821     3,124     2,932     378     351
Long-term debt, including current maturities     14,810     14,266     3,467     3,373     11,343     10,893
Intersegment debt     -     -     575     554     2,056     2,476
Accrued and other liabilities     5,899     5,908     5,383     5,392     524     522
  Total Liabilities   $ 27,606   $ 26,792   $ 12,866   $ 12,612   $ 17,843   $ 17,678
Equity     8,935     8,634     8,935     8,633     2,405     2,319
  Total Liabilities and Equity   $ 36,541   $ 35,426   $ 21,801   $ 21,245   $ 20,248   $ 19,997
                                       

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, 2012.

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 Three Months Ended March 31, 2013 and 2012
(Unaudited)
 
               
    Consolidated   Equipment Operations   Financial Services  
    Three Months Ended   Three Months Ended   Three Months Ended  
March 31,   March 31,   March 31,  
    2013   2012   2013   2012   2013   2012  
    (in millions)  
Operating activities:                                      
  Net income   $ 327   $ 269   $ 328   $ 269   $ 89   $ 73  
  Adjustments to reconcile net income to net cash used in operating activities:                                      
    Depreciation and amortization     109     103     81     76     28     27  
    Intersegment activity     -     -     (230 )   (351 )   230     351  
    Changes in operating assets and liabilities     (1,242 )   (1,174 )   (287 )   (392 )   (955 )   (782 )
    Other, net     36     (18 )   (38 )   (110 )   (16 )   19  
Net cash used in operating activities     (770 )   (820 )   (146 )   (508 )   (624 )   (312 )
Investing activities:                                      
  Expenditures for property, plant and equipment     (84 )   (101 )   (84 )   (101 )   -     -  
  Expenditures for equipment on operating leases     (133 )   (101 )   -     (1 )   (133 )   (100 )
  Net (additions) collections from retail receivables     (104 )   12     -     -     (104 )   12  
  Net (deposits in) withdrawals from Fiat Industrial     (220 )   (322 )   (266 )   (353 )   46     31  
  Other, net     151     168     (3 )   (1 )   154     171  
Net cash (used in) provided by investing activities     (390 )   (344 )   (353 )   (456 )   (37 )   114  
Financing activities:                                      
  Intersegment activity     -     -     422     60     (422 )   (60 )
  Net increase (decrease) in indebtedness     620     17     -     56     620     (39 )
  Other, net     10     9     14     14     (4 )   (7 )
Net cash provided by (used in) financing activities     630     26     436     130     194     (106 )
Effect of foreign exchange rate changes on cash and cash equivalents     4     33     4     25     -     8  
Decrease in cash and cash equivalents     (526 )   (1,105 )   (59 )   (809 )   (467 )   (296 )
Cash and cash equivalents, beginning of year     2,008     2,055     827     1,251     1,181     804  
Cash and cash equivalents, end of quarter   $ 1,482   $ 950   $ 768   $ 442   $ 714   $ 508  
                                       

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, 2012. 

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 Three Months Ended March 31, 2013 and the Year Ended December 31, 2012
(Unaudited)
 
               
    Consolidated   Equipment Operations     Financial Services
    March 31,   Dec. 31,   March 31,     Dec. 31,     March 31,   Dec. 31,
2013   2012   2013     2012     2013   2012
    (in millions)
Short-term debt:                                        
  With Fiat Industrial subsidiaries   $ 658   $ 313   $ 107     $ 102     $ 551   $ 211
  Owed to securitization investors     2,718     3,013     -       -       2,718     3,013
  Other     483     471     210       259       273     212
  Intersegment     -     -     -       -       1,248     1,922
Total short-term debt     3,859     3,797     317       361       4,790     5,358
Long-term debt:                                        
  With Fiat Industrial subsidiaries     31     44     19       19       12     25
  Owed to securitization investors     7,959     7,326     -       -       7,959     7,326
  Other     6,820     6,896     3,448       3,354       3,372     3,542
  Intersegment     -     -     575       554       808     554
Total long-term debt     14,810     14,266     4,042       3,927       12,151     11,447
Total debt:                                        
  With Fiat Industrial subsidiaries     689     357     126       121       563     236
  Owed to securitization investors     10,677     10,339     -       -       10,677     10,339
  Other     7,303     7,367     3,658       3,613       3,645     3,754
  Intersegment     -     -     575       554       2,056     2,476
Total debt   $ 18,669   $ 18,063   $ 4,359     $ 4,288     $ 16,941   $ 16,805
Less:                                        
  Cash and cash equivalents     1,482     2,008     768       827       714     1,181
  Deposits in Fiat Industrial subsidiaries' cash management system     4,391     4,232     4,212       4,005       179     227
  Intersegment notes receivable     -     -     2,056       2,476       575     554
Net debt (cash)   $ 12,796   $ 11,823   $ (2,677 )   $ (3,020 )   $ 15,473   $ 14,843
                                         

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 Ended March 31, 2013 and 2012
(Unaudited)
 
       
    Three Months Ended  
    March 31,  
    2013     2012     % Change  
    (in millions, except percentages)  
1. Revenues and net sales:                      
  Net sales                      
    Agricultural equipment   $ 3,943     $ 3,615     9.1 %
    Construction equipment     754       1,024     -26.4 %
      Total net sales     4,697       4,639     1.3 %
  Financial services     317       332     -4.5 %
  Eliminations and other     (64 )     (72 )      
  Total revenues   $ 4,950     $ 4,899     1.0 %
                       
                       
2. Net sales on a constant currency basis:                      
                       
  Agricultural equipment net sales   $ 3,943     $ 3,615     9.1 %
  Effect of currency translation     71             1.9 %
    Agricultural equipment net sales on a constant currency basis   $ 4,014     $ 3,615     11.0 %
                         
  Construction equipment net sales   $ 754     $ 1,024     -26.4 %
  Effect of currency translation     27             2.7 %
    Construction equipment net sales on a constant currency basis   $ 781     $ 1,024     -23.7 %
                         
    Total Equipment Operations net sales on a constant currency basis   $ 4,795     $ 4,639     3.4 %
                           

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 Months Ended March 31, 2013 and 2012
(Unaudited)

3. Equipment Operations gross and operating profit and margin:

    Three Months Ended  
March 31,  
    2013     2012  
    (in millions, except percentages)  
                           
Net sales   $ 4,697     100.0 %   $ 4,639   100.0 %
Less:                          
  Cost of goods sold     3,728     79.4 %     3,724   80.3 %
Equipment Operations gross profit   $ 969     20.6 %   $ 915   19.7 %
Less:                          
  Selling, general and administrative     374     8.0 %     360   7.8 %
  Research and development     152     3.2 %     149   3.2 %
Equipment Operations operating profit   $ 443     9.4 %   $ 406   8.8 %
                           
Gross profit and margin:                          
  Agricultural equipment   $ 877     22.2 %   $ 760   21.0 %
  Construction equipment     92     12.2 %     155   15.1 %
Equipment Operations gross profit   $ 969     20.6 %   $ 915   19.7 %
                           
Operating profit and margin:                          
  Agricultural equipment   $ 469     11.9 %   $ 372   10.3 %
  Construction equipment     (26 )   -3.4 %     34   3.3 %
Equipment Operations operating profit   $ 443     9.4 %   $ 406   8.8 %
                           
                           
 
CNH GLOBAL N.V.
SUPPLEMENTAL SCHEDULES
For the Three Months Ended March 31, 2013 and 2012
(Unaudited)

4. Net income and diluted earnings per share before restructuring and exceptional items:

     
    Three Months Ended March 31,
    2013   2012
    (in millions, except per share data)
  Net income attributable to CNH   $ 326   $ 269
  Restructuring, net of tax     -     -
  Net income before restructuring and exceptional items   $ 326   $ 269
Weighted average shares outstanding - Diluted:            
    Common Shares     33     241
    Common Shares B     212     -
             
    Diluted EPS before restructuring and exceptional items for Common Shares and Common Shares B   $ 1.33   $ 1.11
                 
                 

5. Equipment Operations cash (used) by working capital:

                           
    Balance as of December 31, 2012   Effect of Foreign Currency Translation     Non-Cash Transactions     Balance as of March 31, 2013   Cash generated (used) by Working Capital  
    (in millions)  
                                     
Accounts, notes receivable and other - net - Total   $ 824   $ (2 )   $ (3 )   $ 1,096   $ (267 )
Inventories     3,734     41       9       4,212     (528 )
Accounts payable - Total     (2,932 )   (56 )     -       (3,124 )   248  
Working Capital   $ 1,626   $ (17 )   $ 6     $ 2,184   $ (547 )
                                     

Note: Working Capital is a non-GAAP financial measure. See description of non-GAAP measures contained in this release.

Contact Information

  • For more information contact:
    CNH Investor Relations
    +1 (630) 887-3745