– Full year Net Sales increase 25% to $18.1 billion

       - Agricultural equipment +23% to $14.2 billion

       - Construction equipment +32% to $3.9 billion

– Full year Equipment Operations

       - Operating Profit of $1.5 billion, an increase of 65%

      - Operating Margin increased to 8.1% compared to 6.1% in 2010

CNH Global N.V. (NYSE: CNH) today announced financial results for the year ended December 31, 2011. For the year, net sales increased 25% (22% on a constant currency basis) to $18.1 billion as agricultural equipment markets continue to perform well across the Group's geographical portfolio, and as a result of the continued recovery in the construction equipment market segment. Equipment Operations posted an Operating Profit of $1.5 billion on the strength of higher demand, with resulting increases in plant utilization, a favorable mix and improved net pricing for agricultural equipment, partially offset by fourth quarter European engine stockpiling costs.

Net equipment sales for the year were 79% agricultural equipment and 21% construction equipment. The geographical distribution of revenue for the period was 42% North America, 32% EAME & CIS, 16% Latin America and 10% APAC markets.

Year-to-date capital expenditures totaled $408 million, a 36% increase from the comparable prior period largely as a result of engine environmental compliance programs and new product launches in both the agricultural and construction equipment segments; 72% of the capital spend was on new products and production capacity in the period.

Equipment Operations generated $1.1 billion of operating cash flow during the year as net sales levels and operating performance more than offset the increased net working capital needed to support business activity. CNH's Equipment Operations ended the period with a net cash position of $2.7 billion. The 30% effective tax rate for 2011 is lower than the Group’s full year expectations of 32% to 38%, due primarily to the geographic mix of earnings that resulted in better utilization of the Group’s tax attributes. The full year 2012 forecasted effective tax rate is between 32% and 35%.

Net income before restructuring and exceptional items for the year was $918 million as a result of improved top line and industrial operating performance, better results from the Group's unconsolidated subsidiaries and a lower comparable tax rate. This resulted in the Group generating a significant increase in diluted earnings per share to $3.82 (before restructuring and exceptional items) compared to $2.08 per share in 2010.

2012 Full Year Market Outlook

Demand in the agricultural and construction equipment markets is expected to remain positive for 2012. Agricultural equipment demand is projected to be flat to up 5% on the back of firm agricultural commodity prices and construction equipment demand is expected to continue its recovery with industry unit sales expected to be up 15 to 20%.


Agricultural Equipment

CNH Agricultural Equipment Full Year Results

CNH’s net sales in the agricultural equipment sector increased 23% in 2011 (20% on a constant currency basis) as a result of solid trading conditions in every region. Net sales in the EAME & CIS markets continued their growth with comparative reported revenue up 36% on the back of firm demand across all product segments. As a result of this increased unit volume in Europe and the CIS, comparative industrial capacity utilization in Europe increased, driving positive cost absorption. This benefit, coupled with improved price realization and favorable product mix (to larger horsepower tractor and combine segments), resulted in a 1.7 percentage point increase in comparative operating margin to 9.9%., (despite transitional costs of engine stock-piling for 2012 incurred in the fourth quarter).

Worldwide agricultural equipment market share was in line with industry demand with continued positive performance in tractors overall in Europe and in the high horsepower segment in North America, as the FPT powered Tier 4A/Stage IIIB compliant equipment was well received by the market for its fuel savings and performance characteristics. Combine market share was up in North America, despite decreased year over year industry retail sales, and in the APAC region. Market share was down in the EAME & CIS region where unit retail sales increased, although at a rate less than the market overall, as a result of local content tariff restrictions. In Latin America, market share performance was stable for tractors and combines despite difficult trading conditions in the fourth quarter and a difficult environment for cross border transactions. Industrial production trailed retail sales in the fourth quarter as a result of good retail activity as demonstrated by the fourth quarter market share performance, and in an overall effort to manage down company and dealer inventories reflected in the Group’s fourth quarter cash flow from working capital. As a result, the Group begins 2012 with a healthy profile of both new and used finished goods inventory.