SOURCE: CNH

CNH

January 27, 2011 05:29 ET

CNH Global Posts Full Year Sales Growth of 13% to $14.5 Billion, 17% Growth in Q4; Equipment Operations Operating Profit Increased 138% to $889 Million; Net Income Before Restructuring and Exceptional Items Improved to $496 Million, at an EPS of $2.08

BURR RIDGE, IL--(Marketwire - January 27, 2011) - CNH Global N.V. (NYSE: CNH) --

--  Net Sales improve 13% to $14.5 billion (11% on a constant currency
    basis)
    --  Agricultural  equipment +8% (6% on a constant currency basis)
    --  Construction equipment +39% (35% on a constant currency basis)
--  Equipment Operations Operating Profit of $889 million, an increase of
    138%
--  Equipment Operations generated $1.8 billion in cash flow from
    operations; net cash of $2.2  billion at year-end
    --  FY Net inventory reduction of $323 million, significant improvement
        in ageing profile of  inventory
--  FY diluted EPS before exceptional items at $2.08 per share, benefitted
    from one time tax adjustments, compared to a loss of $0.48 per share in
    2009



                Quarter Ended                    Year Ended
                 December 31,                    December 31,
              ------------------             ------------------
                                      %                             %
                2010      2009     Change     2010      2009     Change
              --------  --------  --------   --------  --------  --------
               (US $ in millions, except per share data and percentages)
Net Sales of
 Equipment    $  3,759  $  3,213      17.0%  $ 14,474  $ 12,783      13.2%
Equipment
 Operations
 Operating
 Profit       $    176  $    101      74.3%  $    889  $    373     138.3%
Equipment
 Operations
 Operating
 Margin            4.7%      3.1%   1.6 pts       6.1%      2.9%   3.2 pts
Financial
 Services
 Net Income   $     28  $     96     (70.8)% $    159  $    174     (8.6)%
Net Income
 (Loss)
 Attributable
 to CNH       $    209  $     28     646.4%  $    452  $   (190)       Nm
Net Income
 (Loss)
 Before
 Restructuring
 and
 Exceptional
 Items        $    216  $     47     359.6%  $    496  $   (115)       Nm
Diluted EPS
 Before
 Restructuring
 and
 Exceptional
 Items        $   0.90  $   0.20     350.0%  $   2.08  $  (0.48)       Nm

CNH Global N.V. (NYSE: CNH) today announced financial results for the year ended December 31, 2010. For the year, net sales increased 13% (11% on a constant currency basis) to $14.5 billion on the back of improving demand for agricultural equipment driven by increased prices in global agricultural commodities and construction equipment demand in the Americas and Rest of World markets. Equipment Operations posted an Operating Profit of $889 million as a result of these higher volumes, increased industrial utilization in the Americas, and improved product mix. This positive performance was tempered by Western Europe markets remaining at low demand levels, increased raw material prices, and new product launch costs primarily in the construction equipment sector during the fourth quarter.

Net sales were 80% agricultural equipment and 20% construction equipment for the year. The geographical distribution of revenue for the period was 41% North America, 23% Western Europe, 19% Latin America, and 17% Rest of World markets.

Equipment Operations generated $1.8 billion in cash flows from operations for the year including a $323 million reduction of net inventory. Year to date capital expenditures totaled $301 million, a 39% increase from the comparable period largely as a result of new product launches; 80% of the full year capital spend was on new products and production capacity. CNH's Equipment Operations ended the period with a net cash position of $2.2 billion. The effective tax rate for 2010 was 19%, which was favorably impacted by the settlement of certain tax items in the fourth quarter and certain valuation allowances. The Group expects to return to a more normalized effective tax rate of 36% to 40% in 2011.

Net income before restructuring and exceptional items for the period was $496 million as a result of improved top line and industrial operating performance, better results from the Group's non-consolidated entities, and a lower tax rate. This resulted in the Group generating a significant increase in full year diluted earnings per share to $2.08 (before restructuring and exceptional items) compared to a loss of $0.48 per share in 2009.

2011 Market Outlook

CNH anticipates that in 2011 the global agricultural markets will be flat to up 5% in tractors and up 5-10% in combines; in the global construction equipment market CNH's outlook for 2011 is for an increase of between 8-12% in light equipment and 5-10% in heavy equipment.

2011 CNH Outlook

CNH expects to outperform the market in unit growth as a result of new product launches, geographic footprint diversification, and heavy equipment bias in the agricultural sector resulting in an increased operating profit and margin from volume and industrial leverage.

--  Revenues on a constant currency basis are expected to be up by as much
    as 10% compared to the full year 2010.
--  Operating margin is expected to be between 7.1% and 7.9% consistent
    with our Strategic Business Plan.



SEGMENT RESULTS

Agricultural Equipment

                 Quarter Ended                   Year Ended
               12/31/10  12/31/09  % Change   12/31/10  12/31/09  % Change
               --------  --------  --------   --------  --------  --------
                         (US $ in millions, except percentages)
Net Sales of
 Equipment     $  2,985  $  2,626      13.7%  $ 11,528  $ 10,663       8.1%
Gross Profit   $    561  $    478      17.4%  $  2,232  $  1,859      20.1%
Gross Margin       18.8%     18.2%  0.6 pts       19.4%     17.4%  2.0 pts
Operating
 Profit        $    211  $    167      26.3%  $    943  $    712      32.4%
Operating
 Margin             7.1%      6.4%  0.7 pts        8.2%      6.7%  1.5 pts

Agricultural Equipment Industry and Market

Worldwide agricultural industry unit sales increased 12% compared to the fourth quarter of 2009. Global tractor sales grew 12% while global combine sales grew 16% for the quarter. North American tractor sales were up 17% and combine sales up 28% on continued strong demand from the large cash crop segments. Latin America sales of tractors declined 6% and combine sales were up 16%. Western European markets improved for the quarter, with tractor sales up 12% and combine sales flat. Rest of World markets were up 13% in tractor sales and flat in combine sales. Global unit sales of tractors and combines for full year 2010 were up 8% and 2%, respectively.

CNH Agricultural Equipment Fourth Quarter and Full Year Results

CNH's net sales in the agricultural equipment sector increased 8% for the year (6% on a constant currency basis) as a result of solid trading conditions in the Americas due to increasing commodity prices and good harvest conditions. Trading conditions in Europe were more difficult, largely due to poor harvest conditions in certain countries and tight credit markets. Operating margin increased 22% to 8.2% on the higher unit volume driving manufacturing efficiency, and improved product mix to larger horsepower tractor and combine segments. Common platform design and low cost sourcing and localization initiatives continued apace with important projects approved for capacity expansions of whole goods and component parts started in the Group's Brazil and India operations.

Full year market share for the Group was largely in line with prior year in tractors and up approximately 2% in combines. Worldwide production was matched (+1%) with retail deliveries for the year as inventory levels were sufficient to accommodate transition stocks for new product launches.

Company and dealer inventories ended the period either in line with or below industry averages largely driven by strong demand in North America in Q4, partly influenced by preferential tax legislation, and selective production curtailments in Brazil to level load inventories for the year end. The Group's European industrial footprint remained at reduced activity levels due to slow market conditions and to allow for finished goods inventory reduction targets to be realized; industrial activity in Europe is forecast to increase in 2011.

The next generation of more powerful and fuel-efficient Steiger and Magnum tractors in North America along with a range of new Puma 130-160 series models with Continuous Variable Transmission (CVT) were launched by the Case IH Agriculture brand. All models are equipped to meet Tier 4A/Stage IIIB emission standards. In the US, the brand also released the new series Farmall A tractor, with innovative styling. In Brazil, Case IH launched four new Axial-Flow combines, the Magnum 335 tractor and the Maxxum tractor with extended axle.

The new T7, T8 and T9 tractors with Tier 4A/Stage IIIB -compliant "Selective Catalytic Reduction" (SCR) engines as well as the new Braud 9000L grape harvester were launched by the New Holland Agriculture brand. The brand also introduced the Blue Power T7070 Autocommand and T7060 Power Command tractors in Europe and North America. In Europe, the T6000 Elite 6-cylinder, light-weight tractors with electronic engine and power boost and range from 116 to 140 hp was also launched. In North America, the hydrogen-fuelled NH2 tractor debuted.

Construction Equipment

               Quarter Ended                    Year Ended
            12/31/10   12/31/09   % Change  12/31/10   12/31/09   % Change
            --------   --------   --------  --------   --------   --------
                        (US $ in millions, except percentages)
Net Sales
 of
 Equipment  $    774   $    587       31.9% $  2,946   $  2,120       39.0%
Gross
 Profit     $     77   $     45       71.1% $    351   $     62      466.1%
Gross
 Margin          9.9%       7.7%   2.2 pts      11.9%       2.9%   9.0 pts
Operating
 Profit     $    (35)  $    (66)        nm  $    (54)  $   (339)        nm
Operating
 Margin         (4.5)%    (11.2)%  6.7 pts      (1.8)%    (16.0)% 14.2 pts

Construction Equipment Industry and Market

Global construction equipment industry unit sales rose 35% in the fourth quarter compared to the prior year, with light equipment up 36% and heavy equipment up 35%. North American demand was up 34%, with light equipment volumes up 34% and heavy equipment rising 33%. Western European markets rose 21% as the industry began to rebuild from the prior year's low levels. In Latin America, the market was up 53%, driven by strong demand from projects in both the public and private sectors. Industry sales in Rest of World markets rose 38% with continued strong demand in the Asia-Pacific region, primarily the heavy equipment segment in China. For the full year, light equipment unit sales were up 35% and heavy equipment unit sales were up 59%.

CNH Construction Equipment Fourth Quarter and Full Year Results

Full year 2010, net sales in the construction equipment sector grew 39% (35% on a constant currency basis) as a result of significant market improvements in the Latin American and Asian markets, and from the improvement in conditions in the North American market largely as a result of ageing fleet replacements. Operating profit for the year improved by $285 million to $(54) million due to increased production, wholesale unit increases (+50%), and reduced costs from prior period restructuring initiatives. In an improved sales environment, net inventory was reduced by 29% as a result of a focused effort to improve the ageing profile of the company and dealers' inventories in preparation for product launches initiated in Q4, which continue through 2011. During the period, primarily Q4, significant new product launch costs were incurred as several important product lines were re-tooled for the launch of new products into our dealer network.

Full year market share was flat to prior year across all segments with the exception of Latin America, which was down due to industrial capacity constraints in both the heavy and light segments. Capacity expansion plans have been initiated for two facilities to accommodate future market growth and in order to meet manufacturing localization targets.

Company and dealer inventories ended either in line with or below industry levels for the year. Worldwide production lagged retailed units by 13% to allow for de-stocking initiatives to be completed, and as a result of product launch related capacity losses. The Group expects production units to increase across the Group's industrial footprint in 2011 under current market demand estimates.

During 2010, four new N Series loader backhoes in North America and a range of four Construction King T Series tractor loader backhoes in Europe were launched under the Case Construction brand. Better Roads magazine named the Case 650L crawler dozer one of the "Top 20 Rollouts." Specialized magazines honored Case Construction with an "Excellence in Equipment Engineering" award in the loader backhoe category for the 590 Super M+ Series 3 loader backhoe and a recognition for the joystick steering in its Case E Series wheel loaders.

The first three models of the new range of wheeled excavators, the WE150, WE170 and WE190, were launched by the New Holland Construction brand. The brand also introduced the new E10SR, the smallest mini-excavator in its range. US magazine Construction Equipment named the New Holland Construction B Series loader backhoe as one of the Top 100 Products of 2009.

CNH Financial Services Fourth Quarter and Full Year Results


                   Quarter Ended       %           Year Ended        %
                 12/31/10  12/31/09  Change    12/31/10  12/31/09  Change
                 --------  --------  ------    --------  --------  ------
                           (US $ in millions, except percentages)
Net Income       $     28  $     96   (70.8)%  $    159  $    174    (8.6)%
On-Book Asset
 Portfolio       $ 14,274  $  8,171    74.7%   $ 14,274  $  8,171    74.7%
Managed Asset
 Portfolio       $ 16,996  $ 17,257    (1.5)%  $ 16,996  $ 17,257    (1.5)%

Net Income attributable to Financial Services was $159 million for the year, compared with $174 million in 2009; the 4th quarter of 2009 included $84 million of asset-backed securitization gains in accordance with the prevailing accounting guidance which was changed prospectively in 2010. Market conditions continued to improve in North America in both the agricultural and construction equipment sectors while Europe stabilized in the second half of 2010. Full-year results were lower mainly due to higher provisions for credit losses and a higher annual effective tax rate while financial margins improved and general and administrative expenses were maintained at 2009 levels despite the growth in volumes.

At December 31, 2010, delinquent receivables greater than 30 days past due were 5.2% of total managed portfolio, down from 7.4% at December 31, 2009, primarily due to the general improvement in global economic conditions.

Unconsolidated Equipment Operations Subsidiaries

Full year results for the Group's unconsolidated Equipment Operations subsidiaries improved to $88 million from a prior year loss of $46 million. The improved performance was driven across the breadth of the Group's joint venture portfolio with significant contributions from Turk Traktor in Turkey, CNH Mexico, and the Group's two joint ventures in Japan.

Other

Exceptional and Other Items

In Q3 of 2010, the Company completed the redemption of its $500 million in notes due in 2014, and as a result, incurred a pretax loss of $22 million ($14 million after tax) on retirement of debt. The Company disposed of its participation in the LBX joint venture in Q2 of 2010 recording an exceptional after tax gain of $4 million. In Q1 of 2010, the Company incurred $20 million of tax charges due to the impact of the new U.S. Patient Protection and Affordable Care Act.

Equipment Operations Cash Flow and Net Debt
                                                        Year Ended
                                                  12/31/10       12/31/09
                                                 -----------   -----------
                                                     (US $ in millions)
Net Income (Loss)                                $       438   $      (222)
Depreciation & Amortization                              291           270
Cash Change in Working Capital*                          786         1,234
Other                                                    296          (137)
                                                 -----------   -----------
Net Cash Provided by Operating Activities              1,811         1,145
Net Cash Provided (Used) by
Investing Activities**                                  (313)         (240)
All Other                                                167            48
                                                 -----------   -----------
(Increase)/Decrease in Net Debt (Cash)           $     1,665   $       953
                                                 ===========   ===========
Net Debt (Cash)                                  $    (2,195)  $      (530)

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

ABOUT CNH

CNH Global N.V. is a world leader in the agricultural and construction equipment businesses. Supported by more than 11,600 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 (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 January 27, 2011 to review fourth quarter and full year 2010 results. The conference call webcast will begin at 7:00 a.m. U.S. Central Time; 8:00 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 affiliates cash management pool 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 predominantly based on our interpretation of what we consider key economic assumptions and involves risks and uncertainties that could cause actual results to differ. Crop production and commodity prices are strongly affected by weather and can fluctuate significantly. Housing starts and other construction activity are sensitive to the availability of credit and to interest rates and government spending. Some of the other significant factors which may affect our results include general economic and capital market conditions, the cyclical nature of our business, customer buying patterns and preferences, foreign currency exchange rate movements, our hedging practices, our customers' access to credit, restrictive covenants in our debt agreements, actions by rating agencies concerning the ratings of our debt securities and asset backed securities, risks related to our relationship with Fiat Industrial S.p.A., the effect of the demerger transaction consummated by Fiat S.p.A. pursuant to which CNH was separated from Fiat S.p.A.'s automotive business and has become a subsidiary of Fiat Industrial S.p.A, political uncertainty and civil unrest or war in various areas of the world, pricing, product initiatives and other actions 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 and international trade), 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 and critical suppliers, the cost and availability of supplies from our suppliers, raw material costs and availability, energy prices, real estate values, animal diseases, crop pests, harvest yields, government farm programs and consumer confidence, housing starts and construction activity, concerns related to modified organisms and fuel and fertilizer costs. 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, 2009.

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 December 31, 2010 and 2009
                               (Unaudited)
                                                Equipment       Financial
                               Consolidated    Operations        Services
                              --------------  --------------  -------------
                               Three Months    Three Months   Three Months
                                  Ended           Ended           Ended
                               December 31,    December 31,    December 31,
                              --------------  --------------  -------------
                               2010    2009    2010    2009    2010   2009
                              ------  ------  ------  ------  ------ ------
                                  (in millions, except per share data)
Revenues:
   Net sales                  $3,759  $3,213  $3,759  $3,213  $   -- $   --
   Finance and interest income   296     297      47      34     357    361
                              ------  ------  ------  ------  ------ ------

                               4,055   3,510   3,806   3,247     357    361
                              ------  ------  ------  ------  ------ ------

Costs and Expenses:
   Cost of goods sold          3,121   2,690   3,121   2,690      --     --
   Selling, general and
    administrative               462     399     334     310     128     89
   Research, development and
    engineering                  128     112     128     112      --     --
   Restructuring                   8      20       8      20      --     --
   Interest expense              210     162     108      84     148    118
   Interest compensation to
    Financial Services            --      --      62      59      --     --
   Other, net                    104      83      77      54      27     28
                              ------  ------  ------  ------  ------ ------

  Total                        4,033   3,466   3,838   3,329     303    235
                              ------  ------  ------  ------  ------ ------

Income (loss) before income
 taxes and equity in income
 (loss) of unconsolidated
 subsidiaries and affiliates      22      44     (32)    (82)     54    126
Income tax (benefit)
 provision                      (136)     21    (165)    (12)     29     33
Equity in income (loss) of
 unconsolidated subsidiaries
 and affiliates:
   Financial Services              3       3      28      96       3      3
   Equipment Operations           45      (5)     45      (5)     --     --
                              ------  ------  ------  ------  ------ ------

Net income                       206      21     206      21      28     96
Net loss attributable to
 noncontrolling interests         (3)     (7)     (3)     (7)     --     --
                              ------  ------  ------  ------  ------ ------

Net income attributable to
 CNH Global N.V.              $  209  $   28  $  209  $   28  $   28 $   96
                              ======  ======  ======  ======  ====== ======



Weighted average shares
 outstanding:
   Basic                         238     237
                              ======  ======
   Diluted                       239     238
                              ======  ======

Basic and diluted earnings
 per share ("EPS")
 attributable to CNH Global
 N.V. common shareholders:
   Basic EPS                  $ 0.88  $ 0.12
                              ======  ======
   Diluted EPS                $ 0.87  $ 0.12
                              ======  ======



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, 2009.

The supplemental Equipment Operations (with Financial Services on the
equity basis) data in these statements include primarily CNH Global N.V.'s
agricultural and construction equipment operations. The supplemental
Financial Services data in these statements include primarily 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 Year Ended December 31, 2010 and 2009
                               (Unaudited)

                                                Equipment       Financial
                             Consolidated      Operations       Services
                           ----------------  ---------------  -------------
                              Year Ended       Year Ended      Year Ended
                             December 31,      December 31,   December 31,
                           ----------------  ---------------  -------------
                             2010    2009      2010    2009    2010   2009
                           -------  -------  ------- -------  ------ ------
                                 (in millions, except per share data)
Revenues:
   Net sales               $14,474  $12,783  $14,474 $12,783  $   -- $   --
   Finance and interest
    income                   1,134      977      154     131   1,395  1,190
                           -------  -------  ------- -------  ------ ------

                            15,608   13,760   14,628  12,914   1,395  1,190
                           -------  -------  ------- -------  ------ ------

Costs and Expenses:
   Cost of goods sold       11,891   10,862   11,891  10,862      --     --
   Selling, general and
    administrative           1,698    1,486    1,243   1,150     455    336
   Research, development and
    engineering                451      398      451     398      --     --
   Restructuring                16      102       16      98      --      4
   Interest expense            830      671      395     320     612    497
   Interest compensation to
    Financial Services          --       --      238     202      --     --
   Other, net                  306      334      191     201     115    129
                           -------  -------  ------- -------  ------ ------

  Total                     15,192   13,853   14,425  13,231   1,182    966
                           -------  -------  ------- -------  ------ ------

Income (loss) before income
 taxes and equity in income
 (loss) of unconsolidated
 subsidiaries and affiliates   416      (93)     203    (317)    213    224
Income tax provision            77       92       12      33      65     59
Equity in income (loss) of
 unconsolidated subsidiaries
 and affiliates:
   Financial Services           11        9      159     174      11      9
   Equipment Operations         88      (46)      88     (46)     --     --
                           -------  -------  ------- -------  ------ ------

Net income (loss)              438     (222)     438    (222)    159    174
Net loss attributable to
 noncontrolling interests      (14)     (32)     (14)    (32)     --     --
                           -------  -------  ------- -------  ------ ------

Net income (loss)
 attributable to CNH
 Global N.V.               $   452  $  (190) $   452 $  (190) $  159 $  174
                           =======  =======  ======= =======  ====== ======

Weighted average shares
 outstanding:
   Basic                       238      237
                           =======  =======
   Diluted                     239      237
                           =======  =======

Basic and diluted earnings
 (loss) per share ("EPS")
 attributable to CNH
 Global N.V. common
 shareholders:
   Basic EPS               $  1.90  $ (0.80)
                           =======  =======
   Diluted EPS             $  1.89  $ (0.80)
                           =======  =======


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, 2009.

The supplemental Equipment Operations (with Financial Services on the
equity basis) data in these statements include primarily CNH Global
N.V.'s agricultural and construction equipment operations. The
supplemental Financial Services data in these statements include
primarily 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 December 31, 2010 (Unaudited) and December 31, 2009

                                            Equipment         Financial
                        Consolidated       Operations         Services
                      ----------------- ----------------- -----------------
                      December December December December December December
                         31,      31,      31,      31,      31,      31,
                        2010     2009     2010     2009     2010     2009
                      -------- -------- -------- -------- -------- --------
                                          (in millions)
ASSETS
Cash and cash
 equivalents          $  3,618 $  1,263 $  2,934 $    290 $    684 $    973
Deposits in Fiat
 affiliates cash
 management pools        1,760    2,251    1,643    2,144      117      107
Accounts, notes
 receivable and other
 - net                  14,028    8,426      911      788   13,495    7,952
Intersegment notes
 receivable                 --       --    2,273    2,398      562      634
Inventories              2,937    3,297    2,937    3,297       --       --
Property, plant and
 equipment, net          1,786    1,764    1,784    1,761        2        3
Equipment on
 operating leases -
 net                       622      646        2        3      620      643
Investment in
 Financial Services         --       --    2,007    2,377       --       --
Investments in
 unconsolidated
 affiliates                490      415      407      330       83       85
Goodwill and other
 intangibles             3,064    3,091    2,906    2,935      158      156
Other assets             3,284    2,055    1,848    1,557    1,436      498
                      -------- -------- -------- -------- -------- --------

     Total Assets     $ 31,589 $ 23,208 $ 19,652 $ 17,880 $ 17,157 $ 11,051
                      ======== ======== ======== ======== ======== ========

LIABILITIES AND
 EQUITY
Short-term debt       $  3,863 $  1,972 $    125 $    136 $  3,738 $  1,836
Accounts payable         2,367    1,915    2,586    2,061      150      151
Long-term debt,
 including current
 maturities             12,434    7,436    3,968    3,532    8,466    3,904
Intersegment debt           --       --      562      634    2,273    2,398
Accrued and other
 liabilities             5,545    5,075    5,032    4,708      522      384
                      -------- -------- -------- -------- -------- --------

     Total Liabilities  24,209   16,398   12,273   11,071   15,149    8,673
Equity                   7,380    6,810    7,379    6,809    2,008    2,378
                      -------- -------- -------- -------- -------- --------

     Total Liabilities
      and Equity      $ 31,589 $ 23,208 $ 19,652 $ 17,880 $ 17,157 $ 11,051
                      ======== ======== ======== ======== ======== ========


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, 2009.

The supplemental Equipment Operations (with Financial Services on the
equity basis) data in these statements include primarily CNH Global N.V.'s
agricultural and construction equipment operations. The supplemental
Financial Services data in these statements include primarily 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 Year Ended December 31, 2010 and 2009
                               (Unaudited)

                                                Equipment       Financial
                               Consolidated     Operations      Services
                              --------------  --------------  ------------
                                Year Ended      Year Ended     Year Ended
                               December 31,    December 31,   December 31,
                              --------------  --------------  ------------
                               2010    2009    2010    2009   2010   2009
                              ------  ------  ------  ------  ----  ------
                                              (in millions)
Operating activities:
   Net income (loss)          $  438  $ (222) $  438  $ (222) $159  $  174
   Adjustments to reconcile
    net income (loss) to net
    cash provided (used) by
    operating activities:
     Depreciation and
      amortization               415     398     291     270   124     128
     Intersegment activity        --      --      37      39   (37)    (39)
     Changes in operating
      assets and liabilities     656   2,025     919   1,088  (263)    937
     Other, net                 (107)     11     126     (30)    5      20
                              ------  ------  ------  ------  ----  ------

Net cash provided (used) by
 operating activities          1,402   2,212   1,811   1,145   (12)  1,220
                              ------  ------  ------  ------  ----  ------

Investing activities:
   Expenditures for property,
    plant and equipment         (301)   (218)   (301)   (217)   --      (1)
   Expenditures for equipment
    on operating leases         (365)   (302)     --      --  (365)   (302)
   Net collections from
    retail receivables           101   1,796      --      --   101   1,796
   Net withdrawals from
    (deposits in) Fiat
    affiliates cash
    management pools             462    (162)    481    (451)  (19)    289
   Other, net                     57     119     (12)    (23)   49     142
                              ------  ------  ------  ------  ----  ------

Net cash provided (used) by
 investing activities            (46)  1,233     168    (691) (234)  1,924
                              ------  ------  ------  ------  ----  ------

Financing activities:
   Intersegment activity          --      --     254     676  (254)   (676)
   Net increases (decreases)
    in indebtedness              945  (2,954)    371  (1,017)  574  (1,937)
   Dividends paid                 --      --      --      --  (397)   (153)
   Other, net                      1     (15)      1     (15)   20      --
                              ------  ------  ------  ------  ----  ------

Net cash provided (used) by
 financing activities            946  (2,969)    626    (356)  (57) (2,766)
                              ------  ------  ------  ------  ----  ------

Effect of foreign exchange
 rate changes on cash and
 cash equivalents                 53     154      39      19    14     135
                              ------  ------  ------  ------  ----  ------

Increase (decrease) in cash
 and cash equivalents          2,355     630   2,644     117  (289)    513
Cash and cash equivalents,
 beginning of period           1,263     633     290     173   973     460
                              ------  ------  ------  ------  ----  ------

Cash and cash equivalents,
 end of period                $3,618  $1,263  $2,934  $  290  $684  $  973
                              ======  ======  ======  ======  ====  ======


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, 2009.

The supplemental Equipment Operations (with Financial Services on the
equity basis) data in these statements include primarily CNH Global N.V.'s
agricultural and construction equipment operations. The supplemental
Financial Services data in these statements include primarily 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 Year Ended December 31, 2010 and 2009
                               (Unaudited)

                                            Equipment         Financial
                        Consolidated       Operations         Services
                      ----------------- ----------------  -----------------
                      December December December December December December
                         31,      31,      31,      31,      31,      31,
                        2010     2009     2010     2009     2010     2009
                      -------- -------- -------  -------  -------- --------
                                          (in millions)
Short-term debt:
   With Fiat
    affiliates        $    194 $    537 $    43  $     7  $    151 $    530
   Owed to
    securitization
    investors            2,488       --      --       --     2,488       --
   Other                 1,181    1,435      82      129     1,099    1,306
   Intersegment             --       --      52      161     1,730    1,594
                      -------- -------- -------  -------  -------- --------
Total short-term debt    3,863    1,972     177      297     5,468    3,430
                      -------- -------- -------  -------  -------- --------
Long-term debt:
   With Fiat
    affiliates             584    2,352      67      931       517    1,421
   Owed to
    securitization
    investors            5,868       --      --       --     5,868       --
   Other                 5,982    5,084   3,901    2,601     2,081    2,483
   Intersegment             --       --     510      473       543      804
                      -------- -------- -------  -------  -------- --------
Total long-term debt    12,434    7,436   4,478    4,005     9,009    4,708
                      -------- -------- -------  -------  -------- --------
Total debt:
   With Fiat
    affiliates             778    2,889     110      938       668    1,951
   Owed to
    securitization
    investors            8,356       --      --       --     8,356       --
   Other                 7,163    6,519   3,983    2,730     3,180    3,789
   Intersegment             --       --     562      634     2,273    2,398
                      -------- -------- -------  -------  -------- --------
Total debt            $ 16,297 $  9,408 $ 4,655  $ 4,302  $ 14,477 $  8,138
                      ======== ======== =======  =======  ======== ========
Less:
   Cash and cash
    equivalents          3,618    1,263   2,934      290       684      973
   Deposits in Fiat
    affiliates cash
    management pools     1,760    2,251   1,643    2,144       117      107
   Intersegment notes
    receivable              --       --   2,273    2,398       562      634
                      -------- -------- -------  -------  -------- --------
Net debt (cash)       $ 10,919 $  5,894 $(2,195) $  (530) $ 13,114 $  6,424
                      ======== ======== =======  =======  ======== ========

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 Year Ended
                       December 31, 2010 and 2009
                               (Unaudited)

                           Three Months
                               Ended        Year Ended
                           December 31,     December 31,
                          --------------  ---------------
                                            %                         %
                           2010    2009   Change    2010     2009  Change
                          ------  ------  -----   -------  -------  -----
                                 (in millions, except percentages)

1.Revenues and net sales:
  Net sales
   Agricultural equipment $2,985  $2,626   13.7 % $11,528  $10,663    8.1 %
   Construction equipment    774     587   31.9 %   2,946    2,120   39.0 %
                          ------  ------  -----   -------  -------
     Total net sales       3,759   3,213   17.0 %  14,474   12,783   13.2 %
  Financial services         357     361   (1.1)%   1,395    1,190   17.2 %
  Eliminations and other     (61)    (64)            (261)    (213)
                          ------  ------          -------  -------
  Total revenues          $4,055  $3,510   15.5 % $15,608  $13,760   13.4 %
                          ======  ======          =======  =======


2.Net sales on a
   constant currency basis:

  Agricultural equipment
   net sales              $2,985  $2,626   13.7 % $11,528  $10,663    8.1 %
  Effect of currency
   translation                27            1.0 %    (209)           (1.9)%
                          ------  ------          -------  -------
     Agricultural
      equipment net sales
      on a constant
      currency basis      $3,012  $2,626   14.7 % $11,319  $10,663    6.2 %
                          ======  ======          =======  =======

  Construction equipment
   net sales              $  774  $  587   31.9 % $ 2,946  $ 2,120   39.0 %
  Effect of currency
   translation                 6            1.0 %     (85)           (4.0)%
                          ------  ------          -------  -------
     Construction
      equipment net sales
      on a constant
      currency basis      $  780  $  587   32.9 % $ 2,861  $ 2,120   35.0 %
                          ======  ======          =======  =======

     Total Equipment
      Operations net
      sales on a constant
      currency basis      $3,792  $3,213   18.0 % $14,180  $12,783   10.9 %
                          ======  ======          =======  =======

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 and Year Ended December 31, 2010 and 2009
                               (Unaudited)

3. Equipment Operations gross and operating profit and margin:

           Three Months Ended December 31,     Year Ended December 31,
           ------------------------------  -------------------------------
                2010            2009            2010             2009
           --------------  --------------  --------------  ---------------
                          (in millions, except percentages)


Net sales  $3,759  100.0 % $3,213  100.0 % $14,474 100.0 % $12,783  100.0 %
Less:
 Cost of
  goods
  sold      3,121   83.0 %  2,690   83.7 %  11,891  82.2 %  10,862   85.0 %
           ------          ------          -------         -------
Equipment
 Operations
 gross profit 638   17.0 %    523   16.3 %   2,583  17.8 %   1,921   15.0 %
Less:
 Selling,
  general
  and
  administ
   -rative    334    8.9 %    310    9.6 %   1,243   8.6 %   1,150    9.0 %
 Research
  and
  development 128    3.4 %    112    3.5 %     451   3.1 %     398    3.1 %
           ------          ------          -------         -------
Equipment
 Operations
 operating
 profit    $  176    4.7 % $  101    3.1 % $   889   6.1 % $   373    2.9 %
           ======          ======          =======         =======

Gross profit
 and margin:
 Agricultural
 equipment $  561   18.8 % $  478   18.2 % $ 2,232  19.4 % $ 1,859   17.4 %
 Construction
 equipment     77    9.9 %     45    7.7 %     351  11.9 %      62    2.9 %
           ------          ------          -------         -------
Equipment
 Operations
 gross
 profit    $  638   17.0 % $  523   16.3 % $ 2,583  17.8 % $ 1,921   15.0 %
           ======          ======          =======         =======

Operating
 profit and
 margin:
 Agricultural
 equipment $  211    7.1 % $  167    6.4 % $   943   8.2 % $   712    6.7 %
 Construction
 equipment    (35)  (4.5)%    (66) (11.2)%     (54) (1.8)%    (339) (16.0)%
           ------          ------          -------         -------
Equipment
 Operations
 operating
 profit    $  176    4.7 % $  101    3.1 % $   889   6.1 % $   373    2.9 %
           ======          ======          =======         =======



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



                                       Three Months Ended    Year Ended
                                           December 31,     December 31,
                                        ----------------  ----------------
                                          2010     2009     2010     2009
                                        -------  -------  -------  -------
                                       (in millions, except per share data)

Net income (loss) attributable to CNH   $   209  $    28  $   452  $  (190)
                                        -------  -------  -------  -------
Restructuring, after tax:
    Restructuring                             8       20       16      102
    Tax benefit                              (1)      (1)      (2)     (27)
                                        -------  -------  -------  -------
      Restructuring, after tax                7       19       14       75
                                        -------  -------  -------  -------
Exceptional items:
    Loss from debt redemption, net of
     tax                                     --       --       14       --
    Gain from the sale of business, net
     of tax                                  --       --       (4)      --
    Tax charge for Medicare Part D
     retiree drug subsidy                    --       --       20       --
                                        -------  -------  -------  -------
Net income (loss) before restructuring
 and exceptional items                  $   216  $    47  $   496  $  (115)
                                        =======  =======  =======  =======
Weighted average common shares
 outstanding - diluted                      239      238      239      237
                                        =======  =======  =======  =======
Diluted earnings (loss) per share before
 restructuring and exceptional items    $  0.90  $  0.20  $  2.08  $ (0.48)
                                        =======  =======  =======  =======

Note: Equipment Operations Gross and Operating Profit and Net Income and
Diluted Earnings Per Share Before Restructuring and Exceptional Items are
non-GAAP financial measures.  See description of non-GAAP measures
contained in this release.




                             CNH GLOBAL N.V.
                         SUPPLEMENTAL SCHEDULES
      For the Three Months and Year Ended December 31, 2010 and 2009
                               (Unaudited)

5. Equipment Operations cash generated from working capital

                                                                   Cash
                      Balance   Effect of              Balance   Generated
                       as of     Foreign                as of      from
                     December   Currency    Non-Cash   December   Working
                     31, 2009 Translation Transactions 31, 2010   Capital
                     ---------  ---------  ---------  ---------  ---------
                                         (in millions)

Accounts, notes
 receivable and
 other - net - Total $     788  $      17  $       9  $     911  $     (97)
Inventories              3,297        (37)         -      2,937        323
Accounts payable -
 Total                  (2,061)        72        (37)    (2,586)       560
                     ---------  ---------  ---------  ---------  ---------
Working Capital      $   2,024  $      52  $     (28) $   1,262  $     786
                     =========  =========  =========  =========  =========


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