CNH Third Quarter 2012 EPS Increases 18% to $1.34 on Net Sales of $4.8 Billion

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BURR RIDGE, IL--(Marketwire - Oct 31, 2012) - CNH Global N.V. (NYSE: CNH)

  • Net Sales of $4.8 billion +5% (+11% constant currency basis)
    • Agricultural equipment net sales of $4.0 billion +12% (+18% constant currency basis)
    • Construction equipment net sales of $830 million -21% (-14% constant currency basis)
  • Equipment Operations' Operating Profit of $464 million, at a margin of 9.6% for the period
  • Diluted EPS attributable to CNH common shareholders at $1.34 per share, compared to $1.14 per share in Q3 2011
             
    Quarter Ended        
    9/30/2012     9/30/2011     Change  
(US $ in millions, except per share data and percentages)  
Net Sales of Equipment   $ 4,833     $ 4,613     4.8 %
Equipment Operations Operating Profit   $ 464     $ 460     0.9 %
Equipment Operations Operating Margin     9.6 %     10.0 %   -0.4 pts  
Financial Services Net Income   $ 71     $ 53     34.0 %
Net Income Attributable to CNH   $ 323     $ 274     17.9 %
Net Income Before Restructuring and Exceptional Items   $ 323     $ 272     18.8 %
Diluted EPS Attributable to CNH common shareholders   $ 1.34     $ 1.14     17.5 %
                       

CNH Global N.V. (NYSE: CNH) today announced financial results for the quarter ended September 30, 2012. Net sales for the quarter increased 5% (11% on a constant currency basis) to $4.8 billion as global demand for agricultural equipment remained solid, driven by high commodity prices offsetting the effects of a severe drought in North America. Strong agricultural equipment sales more than offset the reduction in sales of construction equipment due to challenging market conditions in most geographies and the negative effects of foreign currency translation. Equipment Operations posted a gross profit of $988 million, or 20.4% of net sales for the third quarter, and an operating profit of $464 million, as higher agricultural equipment revenues and positive net pricing in both segments compensated for increased SG&A expenditures and R&D expense (+22%) as a result of significant investments in new products and Tier 4 engine emissions compliance programs and the negative impact from foreign exchange.

Equipment net sales during the quarter were 83% agricultural equipment and 17% construction equipment. The geographical distribution of net sales in the quarter was 46% North America, 27% EAME & CIS, 15% Latin America, and 12% APAC markets.

Equipment Operations generated $450 million in cash flow from operations on a year-to-date basis, a 15% increase over the prior year, as improved net sales and operating performance more than offset the increased net working capital needed to support increased business activity. Year-to-date capital expenditures totaled $334 million, a 53% increase from the comparable 2011 period, largely as a result of investments in new manufacturing sites and product launches in both the agricultural and construction equipment segments. Capital expenditures on new product development (inclusive of interim and final Tier 4 emission compliant equipment) and production capacity represented 71% of the total CAPEX spent through the third quarter. The Group expects full year capital expenditures and R&D investment of approximately $1 billion.

CNH's Equipment Operations ended the period with a net cash position of $2.9 billion. The 31% effective tax rate for the third quarter is lower than the Group's full year 2012 forecast effective tax rate of 32% to 35%, due primarily to the geographic mix of earnings that resulted in better utilization of the Group's tax attributes.

For the quarter, net income, before restructuring and exceptional items, was $323 million, an increase of 19%, driven by continued solid market conditions in the agricultural sector, satisfactory industrial performance, and improved results by the Group's financial services business, largely driven by lower provision for credit losses and higher average portfolio, offsetting the increased costs of research and development and the negative currency translation in the period. This resulted in the Group generating diluted earnings per share of $1.34 (before restructuring and exceptional items), up 19% compared to $1.13 per share in the comparable period of 2011.

2012 Full Year Market Outlook

  • Worldwide agricultural equipment unit volume is expected to be flat to down 5%
  • Worldwide construction equipment unit volume is expected to be flat to down 5%

CNH Confirms Its Guidance For The Full Year 2012

  • Revenues up 5%+
  • Operating Margin in excess of 8.6% 
   
SEGMENT RESULTS  
Agricultural Equipment  
             
    Quarter Ended        
    9/30/2012     9/30/2011     Change  
    (US $ in millions, except percentages)  
Net Sales of Equipment   $ 4,003     $ 3,566     12.3 %
Gross Profit   $ 881     $ 778     13.2 %
Gross Margin     22.0 %     21.8 %   0.2 pts  
Operating Profit   $ 479     $ 411     16.5 %
Operating Margin     12.0 %     11.5 %   0.5 pts  
                       

CNH Agricultural Equipment Third Quarter Results
CNH's third quarter net sales of agricultural equipment increased 18% on a constant currency basis (12% on a reported basis) driven by increased volume, positive net pricing, and favorable product mix. All of the Group's geographic regions reported increased revenue on a constant currency basis. Operating profit increased by $68 million to $479 million at an operating margin of 12.0%, up 50 basis points from the comparable 2011 period.

Third quarter worldwide agricultural equipment market share performance was positive for both tractors and combines, with gains in the high horsepower tractor segment in North America. Combine market share was up in every region except for North America, where the Group performed in line with the market.

CNH worldwide production of agricultural equipment exceeded retail sales in the quarter ahead of scheduled production downtime in the fourth quarter.

At the 2012 Farm Progress show in Iowa, U.S.A., Case IH introduced the 4WD Steiger Rowtrac, equipped with narrow tracks that better adjust to multiple row-crop spacing options, and two folding augers for its combine line-up, which, with length up to 34-feet, achieve precise and safe grain unload on-the-go while reducing the auger displacement when not in use. The brand also unveiled a redesigned cab for its Axial-Flow combine series including improved ergonomics on the Multifunction Propulsion Handle command console.

New Holland Agriculture launched five new FR forage harvester models in Europe, which deliver between 450-824hp and offer industry-leading chop quality and productivity, as well as featuring the new ultra-wide IntelliView IV color touchscreen monitor. New Holland, leveraging on the long term strategic partnership signed with Orkel, introduced a new series of professional fixed chamber Roll Balers. In addition, the brand enhanced its ground care Boomer Compact Tractor 3000 range introducing an upgraded EasyDrive continuously variable transmission. In North America, New Holland introduced several updated products at the Farm Progress show, including: the new 840CD rigid draper head specifically designed to match the CR series Twin Rotor and the CX8000 super-conventional combines, which provide uniform crop flow up to 45 feet of cutting widths.

New Holland, in partnership with Semeato, received the first prize in the Innovation Category at Expointer, the largest fair in Southern Brazil, for its ISOBUS communication system between tractor and the SOLTT planter. At the CIAME trade show in China, the brand displayed the Braud 9080L grape harvester, the first ever to be introduced into the country. In the Republic of Georgia, New Holland was awarded a contract by the Ministry of Agriculture for the supply of over 100 tractors and combine harvesters.

   
Construction Equipment  
             
    Quarter Ended        
    9/30/2012     9/30/2011     Change  
    (US $ in millions, except percentages)  
Net Sales of Equipment   $ 830     $ 1,047     -20.7 %
Gross Profit   $ 107     $ 167     -35.9 %
Gross Margin     12.9 %     16.0 %   -3.1 pts  
Operating Profit   $ (15 )   $ 49     NA  
Operating Margin     (1.8 )%     4.7 %   -6.5 pts  
                       

CNH Construction Equipment Third Quarter Results
CNH's construction equipment third quarter 2012 net sales decreased 14% on a constant currency basis (-21% on a reported basis) as industry recovery slowed considerably in every region with Latin America decreasing 12% year-over-year in the quarter and the APAC market continuing to be down for the third consecutive quarter. Reduced commercial volumes and industrial capacity absorption and adverse currency impact resulted in a $15 million operating loss for the quarter.

CNH's worldwide construction equipment market share was in line with the market in the third quarter, with gains in Latin America as a result of new product launches and good equipment availability.

CNH's worldwide production of construction equipment was moderately below retail sales during the quarter, as a result of the action taken to balance inventory levels, especially in Latin America and Europe. The Group expects to continue producing below retail sales levels during the fourth quarter of the year.

Case Construction Equipment introduced its new Tier 4A/Stage IIIB H Series rough-terrain forklifts and 570N XT tractor loaders in North America. In Latin America, Case launched the new 5.5-ton CX55B compact excavator, specifically designed for residential applications. Case Construction Equipment launched the SR Series skid steer loaders in India; the SR130 and SR150 models offer unmatched power to weight ratio, increased torque and enhanced operator comfort and visibility.

In Latin America, New Holland Construction launched the new LM1445 and LM1745 telehandlers, extending the lift-height range to 17 meters and the new E55B compact excavator. New Holland Construction now offers one of the most complete compact product lines in the region.

CNH Financial Services Third Quarter Results

           
    Quarter Ended      
    9/30/2012   9/30/2011   Change
    (US $ in millions, except percentages)  
Net Income   $ 71   $ 53   34.0 %
On-Book Asset Portfolio   $ 16,931   $ 15,028   12.7 %
Managed Asset Portfolio   $ 19,239   $ 17,627   9.1 %
                   

Net income attributable to Financial Services was $71 million for the quarter, compared with $53 million in the third quarter of 2011. Improved results were due to lower provision for credit losses and higher average portfolio, partially offset by a higher provision for income taxes.

At the end of the third quarter of 2012, delinquent receivables greater than 30 days past due were 1.3% of the total on-book portfolio, a decrease from 1.6% at the end of the second quarter of 2012.

Unconsolidated Equipment Operations Subsidiaries
Third quarter results for the Group's unconsolidated Equipment Operations subsidiaries were $21 million, relatively unchanged from the comparable period of 2011.

Combination Transaction Proposal From Fiat Industrial
On October 15, 2012, the special committee of unconflicted CNH directors appointed to evaluate the business combination proposal between Fiat Industrial S.p.A. and CNH Global N.V., in consultation with their financial and legal advisors, unanimously concluded that the proposal submitted by Fiat Industrial was inadequate and would not be in the best interests of CNH and its shareholders. The special committee and Fiat Industrial and their respective advisors are continuing to meet to explore whether the parties can reach agreement on revised terms for the proposed merger transaction. 

   
Equipment Operations Cash Flow and Net Debt  
   
    Year to Date  
    9/30/2012     9/30/2011  
    (US $ in millions)  
Net Income   $ 945     $ 735  
Depreciation & Amortization     238       231  
Cash Change in Working Capital*     (907 )     (715 )
Other     174       139  
Net Cash Provided by Operating Activities     450       390  
Net Cash (Used) by Investing Activities**     (364 )     (275 )
All Other     75       (33 )
Increase in Net (Cash)   $ 161     $ 82  
Net (Cash)   $ (2,892 )   $ (2,277 )
                 

* 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 11,300 dealers in approximately 170 countries, CNH brings together the knowledge and heritage of its Case and New Holland brand families with the strength and resources of its worldwide commercial, industrial, product support and finance organizations. CNH Global N.V., whose stock is listed 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 October 31, 2012 to review third quarter 2012 results. The conference call webcast will begin at 9:00 a.m. U.S. Central Time (10:00 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 Industrial 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 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, 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, 2011.

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 September 30, 2012 and 2011
(Unaudited)
 
    Consolidated     Equipment Operations     Financial Services
    Three Months Ended September 30,     Three Months Ended September 30,     Three Months Ended September 30,
    2012     2011     2012     2011     2012   2011
    (in millions, except per share data)
Revenues:                                            
  Net sales   $ 4,833     $ 4,613     $ 4,833     $ 4,613     $ -   $ -
  Finance and interest income     249       284       42       45       321     353
      5,082       4,897       4,875       4,658       321     353
Costs and Expenses:                                            
  Cost of goods sold     3,845       3,668       3,845       3,668       -     -
  Selling, general and administrative     427       470       364       354       63     116
  Research, development and engineering     160       131       160       131       -     -
  Restructuring     -       (3 )     -       (3 )     -     -
  Interest expense     163       191       79       94       125     135
  Interest compensation to Financial Services     -       -       73       76       -     -
  Other, net     55       82       26       51       29     31
                                             
Total     4,650       4,539       4,547       4,371       217     282
                                             
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates     432       358       328       287       104     71
Income tax provision     134       110       98       89       36     21
Equity in income of unconsolidated subsidiaries and affiliates:                                            
  Financial Services     3       3       71       53       3     3
  Equipment Operations     21       20       21       20       -     -
                                             
Net income     322       271       322       271       71     53
  Net loss attributable to noncontrolling interests     (1 )     (3 )     (1 )     (3 )     -     -
                                             
Net income attributable to CNH Global N.V.   $ 323     $ 274     $ 323     $ 274     $ 71   $ 53
                                             
Weighted average shares outstanding:                                            
  Basic     240       240                              
  Diluted     241       240                              
                                             
Basic and diluted earnings per share ("EPS") attributable to CNH Global N.V. common shareholders:                                            
  Basic EPS   $ 1.35     $ 1.15                              
  Diluted EPS   $ 1.34     $ 1.14                              
                                             

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, 2011.

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

 
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND SUPPLEMENTAL INFORMATION
For the Nine Months Ended September 30, 2012 and 2011
(Unaudited)
 
    Consolidated     Equipment Operations     Financial Services
    Nine Months Ended September 30,     Nine Months Ended September 30,     Nine Months Ended September 30,
    2012     2011     2012     2011     2012   2011
    (in millions, except per share data)
Revenues:                                            
  Net sales   $ 14,498     $ 13,291     $ 14,498     $ 13,291     $ -   $ -
  Finance and interest income     762       853       109       133       980     1,045
      15,260       14,144       14,607       13,424       980     1,045
Costs and Expenses:                                            
  Cost of goods sold     11,542       10,675       11,542       10,675       -     -
  Selling, general and administrative     1,286       1,340       1,091       1,017       195     323
  Research, development and engineering     471       372       471       372       -     -
  Restructuring     2       -       2       -       -     -
  Interest expense     521       593       249       290       374     414
  Interest compensation to Financial Services     -       -       225       214       -     -
  Other, net     171       186       89       100       82     86
                                             
Total     13,993       13,166       13,669       12,668       651     823
                                             
Income before income taxes and equity in income of unconsolidated subsidiaries and affiliates     1,267       978       938       756       329     222
Income tax provision     397       332       280       259       117     73
Equity in income of unconsolidated subsidiaries and affiliates:                                            
  Financial Services     10       10       222       159       10     10
  Equipment Operations     65       79       65       79       -     -
                                             
Net income     945       735       945       735       222     159
  Net loss attributable to noncontrolling interests     (2 )     (11 )     (2 )     (11 )     -     -
                                             
Net income attributable to CNH Global N.V.   $ 947     $ 746     $ 947     $ 746     $ 222   $ 159
                                             
Weighted average shares outstanding:                                            
  Basic     240       239                              
  Diluted     242       240                              
                                             
Basic and diluted earnings per share ("EPS") attributable to CNH Global N.V. common shareholders:                                            
  Basic EPS   $ 3.94     $ 3.12                              
  Diluted EPS   $ 3.92     $ 3.10                              
                                             

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, 2011.

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 September 30, 2012 and December 31, 2011
(Unaudited)
 
    Consolidated   Equipment Operations   Financial Services
    Sep. 30,   Dec. 31,   Sep. 30,   Dec. 31,   Sep. 30,   Dec. 31,
2012   2011   2012   2011   2012   2011
    (in millions)
ASSETS                                    
Cash and cash equivalents   $ 998   $ 2,055   $ 307   $ 1,251   $ 691   $ 804
Deposits in Fiat Industrial subsidiaries' cash management system     4,218     4,116     3,888     3,980     330     136
Accounts, notes receivable and other, net     16,759     14,491     1,034     894     16,196     14,072
Intersegment notes receivable     -     -     3,052     1,993     535     693
Inventories     4,163     3,662     4,163     3,662     -     -
Property, plant and equipment, net     2,074     1,936     2,072     1,934     2     2
Equipment on operating leases, net     759     666     11     7     748     659
Investment in Financial Services     -     -     2,255     2,045     -     -
Investments in unconsolidated affiliates     510     506     413     423     97     83
Goodwill and other intangibles     3,064     3,084     2,907     2,926     157     158
Other assets     2,780     3,577     1,622     2,065     1,158     1,512
                                     
    Total Assets   $ 35,325   $ 34,093   $ 21,724   $ 21,180   $ 19,914   $ 18,119
                                     
LIABILITIES AND EQUITY                                    
Short-term debt   $ 4,980   $ 4,072   $ 323   $ 144   $ 4,657   $ 3,928
Accounts payable     2,918     2,952     3,037     3,219     344     199
Long-term debt, including current maturities     12,582     13,038     3,497     3,656     9,085     9,382
Intersegment debt     -     -     535     693     3,052     1,993
Accrued and other liabilities     5,888     6,107     5,376     5,545     520     571
                                     
    Total Liabilities   $ 26,368   $ 26,169   $ 12,768   $ 13,257   $ 17,658   $ 16,073
Equity     8,957     7,924     8,956     7,923     2,256     2,046
                                     
    Total Liabilities and Equity   $ 35,325   $ 34,093   $ 21,724   $ 21,180   $ 19,914   $ 18,119
                                     

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, 2011.

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 Nine Months Ended September 30, 2012 and 2011  
(Unaudited)  
   
    Consolidated     Equipment Operations     Financial Services  
    Nine Months Ended     Nine Months Ended     Nine Months Ended  
September 30,     September 30,     September 30,  
    2012     2011     2012     2011     2012     2011  
    (in millions)  
Operating activities:                                                
  Net income   $ 945     $ 735     $ 945     $ 735     $ 222     $ 159  
  Adjustments to reconcile net income to net cash used by operating activities:                                                
    Depreciation and amortization     334       320       238       231       96       89  
    Intersegment activity     -       -       (203 )     (147 )     203       147  
    Changes in operating assets and liabilities     (1,530 )     (952 )     (178 )     (219 )     (1,352 )     (733 )
    Other, net     (70 )     (37 )     (352 )     (210 )     63       14  
                                                 
Net cash (used in) provided by operating activities     (321 )     66       450       390       (768 )     (324 )
                                                 
Investing activities:                                                
  Expenditures for property, plant and equipment     (334 )     (218 )     (334 )     (218 )     -       -  
  Expenditures for equipment on operating leases     (316 )     (258 )     (6 )     (2 )     (310 )     (256 )
  Net additions from retail receivables     (700 )     (211 )     -       -       (700 )     (211 )
  Net (deposits in) withdrawals from Fiat Industrial     (74 )     (2,009 )     118       (2,046 )     (192 )     37  
  Other, net     228       105       (24 )     (55 )     248       160  
                                                 
Net cash used in investing activities     (1,196 )     (2,591 )     (246 )     (2,321 )     (954 )     (270 )
                                                 
Financing activities:                                                
  Intersegment activity     -       -       (1,221 )     (76 )     1,221       76  
  Net increase (decrease) in indebtedness     456       144       33       (351 )     423       495  
  Other, net     28       26       46       26       (17 )     -  
                                                 
Net cash provided by (used in) financing activities     484       170       (1,142 )     (401 )     1,627       571  
                                                 
Effect of foreign exchange rate changes on cash and cash equivalents     (24 )     (61 )     (6 )     (18 )     (18 )     (43 )
                                                 
Decrease in cash and cash equivalents     (1,057 )     (2,416 )     (944 )     (2,350 )     (113 )     (66 )
Cash and cash equivalents, beginning of period     2,055       3,618       1,251       2,934       804       684  
                                                 
Cash and cash equivalents, end of period   $ 998     $ 1,202     $ 307     $ 584     $ 691     $ 618  
                                                 

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, 2011. 

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 Nine Months Ended September 30, 2012 and the Year Ended December 31, 2011
(Unaudited)
 
    Consolidated   Equipment Operations     Financial Services
    Sep. 30,   Dec. 31,   Sep. 30,     Dec. 31,     Sep. 30,   Dec. 31,
2012   2011   2012     2011     2012   2011
    (in millions)
Short-term debt:                                        
  With Fiat Industrial subsidiaries   $ 605   $ 325   $ 221     $ 80     $ 384   $ 245
  Owed to securitization investors     2,942     2,302     -       -       2,942     2,302
  Other     1,433     1,445     102       64       1,331     1,381
  Intersegment     -     -     -       95       2,518     1,394
Total short-term debt     4,980     4,072     323       239       7,175     5,322
Long-term debt:                                        
  With Fiat Industrial subsidiaries     70     314     19       65       51     249
  Owed to securitization investors     6,669     6,511     -       -       6,669     6,511
  Other     5,843     6,213     3,478       3,591       2,365     2,622
  Intersegment     -     -     535       598       534     599
Total long-term debt     12,582     13,038     4,032       4,254       9,619     9,981
Total debt:                                        
  With Fiat Industrial subsidiaries     675     639     240       145       435     494
  Owed to securitization investors     9,611     8,813     -       -       9,611     8,813
  Other     7,276     7,658     3,580       3,655       3,696     4,003
  Intersegment     -     -     535       693       3,052     1,993
                                         
Total debt   $ 17,562   $ 17,110   $ 4,355     $ 4,493     $ 16,794   $ 15,303
Less:                                        
  Cash and cash equivalents     998     2,055     307       1,251       691     804
  Deposits in Fiat Industrial                                        
  subsidiaries' cash                                        
  management system     4,218     4,116     3,888       3,980       330     136
  Intersegment notes receivable     -     -     3,052       1,993       535     693
                                         
Net debt (cash)   $ 12,346   $ 10,939   $ (2,892 )   $ (2,731 )   $ 15,238   $ 13,670
                                         

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 Nine Months Ended September 30, 2012 and 2011  
(Unaudited)  
   
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2012     2011     % Change     2012     2011     % Change  
    (in millions, except percentages)  
1. Revenues and net sales:                                            
  Net sales                                            
    Agricultural equipment   $ 4,003     $ 3,566     12.3 %   $ 11,643     $ 10,488     11.0 %
    Construction equipment     830       1,047     -20.7 %     2,855       2,803     1.9 %
      Total net sales     4,833       4,613     4.8 %     14,498       13,291     9.1 %
  Financial services     321       353     -9.1 %     980       1,045     -6.2 %
  Eliminations and other     (72 )     (69 )           (218 )     (192 )      
                                             
  Total revenues   $ 5,082     $ 4,897     3.8 %   $ 15,260     $ 14,144     7.9 %
                                             
                                             
2. Net sales on a constant currency basis:                                            
                                             
  Agricultural equipment net sales   $ 4,003     $ 3,566     12.3 %   $ 11,643     $ 10,488     11.0 %
  Effect of currency translation     211             5.9 %     522             5.0 %
    Agricultural equipment net sales on a constant currency basis   $ 4,214     $ 3,566     18.2 %   $ 12,165     $ 10,488     16.0 %
                                             
  Construction equipment net sales   $ 830     $ 1,047     -20.7 %   $ 2,855     $ 2,803     1.9 %
  Effect of currency translation     69             6.6 %     157             5.6 %
    Construction equipment net sales on a constant currency basis   $ 899     $ 1,047     -14.1 %   $ 3,012     $ 2,803     7.5 %
                                             
    Total Equipment Operations net sales on a constant currency basis   $ 5,113     $ 4,613     10.8 %   $ 15,177     $ 13,291     14.2 %
                                             

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

   
CNH GLOBAL N.V.  
SUPPLEMENTAL SCHEDULES  
For the Three and Nine Months Ended September 30, 2012 and 2011  
(Unaudited)  
   
3. Equipment Operations gross and operating profit and margin:  
   
    Three Months Ended     Nine Months Ended  
September 30,     September 30,  
    2012     2011     2012     2011  
    (in millions, except percentages)  
                                                   
  Net sales   $ 4,833     100.0 %   $ 4,613   100.0 %   $ 14,498   100.0 %   $ 13,291   100.0 %
  Less:                                                  
    Cost of goods sold     3,845     79.6 %     3,668   79.5 %     11,542   79.6 %     10,675   80.3 %
  Equipment Operations gross profit   $ 988     20.4 %   $ 945   20.5 %   $ 2,956   20.4 %   $ 2,616   19.7 %
  Less:                                                  
    Selling, general and administrative     364     7.5 %     354   7.7 %     1,091   7.5 %     1,017   7.7 %
    Research and development     160     3.3 %     131   2.8 %     471   3.2 %     372   2.8 %
                                                   
  Equipment Operations operating profit   $ 464     9.6 %   $ 460   10.0 %   $ 1,394   9.6 %   $ 1,227   9.2 %
                                                   
  Gross profit and margin:                                                  
    Agricultural equipment   $ 881     22.0 %   $ 778   21.8 %   $ 2,556   22.0 %   $ 2,219   21.2 %
    Construction equipment     107     12.9 %     167   16.0 %     400   14.0 %     397   14.2 %
                                                   
  Equipment Operations gross profit   $ 988     20.4 %   $ 945   20.5 %   $ 2,956   20.4 %   $ 2,616   19.7 %
                                                   
  Operating profit and margin:                                                  
    Agricultural equipment   $ 479     12.0 %   $ 411   11.5 %   $ 1,358   11.7 %   $ 1,169   11.1 %
    Construction equipment     (15 )   -1.8 %     49   4.7 %     36   1.3 %     58   2.1 %
                                                   
  Equipment Operations operating profit   $ 464     9.6 %   $ 460   10.0 %   $ 1,394   9.6 %   $ 1,227   9.2 %
                                                   
                                                   
                                                   
4. Net income and diluted earnings per share before restructuring and exceptional items:  
   
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2012   2011     2012   2011  
    (in millions, except per share data)  
                             
  Net income attributable to CNH   $ 323   $ 274     $ 947   $ 746  
  Restructuring:                            
    Restructuring, net of tax     -     (2 )     1     -  
  Exceptional item:                            
    (Gain) on purchase of business, net of tax     -     -       -     (16 )
                             
  Net income before restructuring and exceptional items   $ 323   $ 272     $ 948   $ 730  
                             
    Weighted average common shares outstanding - diluted     241     240       242     240  
    Diluted earnings per share before restructuring and exceptional items   $ 1.34   $ 1.13     $ 3.93   $ 3.03  
                             
                             
                             
CNH GLOBAL N.V.  
SUPPLEMENTAL SCHEDULES  
For the Nine Months Ended September 30, 2012  
(Unaudited)  
   
5. Equipment Operations cash generated from working capital:  
   
    Balance as of December 31, 2011     Effect of Foreign Currency Translation     Non-Cash Transactions   Balance as of September 30, 2012     Cash used by Working Capital  
    (in millions)  
                                       
  Accounts, notes receivable and other - net - Total   $ 894     $ 33     $ 4   $ 1,034     $ (177 )
  Inventories     3,662       37       18     4,163       (556 )
  Accounts payable - Total     (3,219 )     (8 )     -     (3,037 )     (174 )
                                       
  Working Capital   $ 1,337     $ 62     $ 22   $ 2,160     $ (907 )
                                       

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

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For more information contact:
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+1 (630) 887-3745
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