CNH Full Year 2006 Net Income up 79 Percent From 2005
Market Wire, January, 2007
CNH Global N.V.
Estimates of Worldwide Retail Industry Unit Sales Performance(1)
World-
wide N.A. W.E. L.A. ROW
'06 B(W) '06 B(W) '06 B(W) '06 B(W) '06 B(W)
======== ======== ======== ======== ========
---------------------------------------------------------------------------
First Quarter 2006 Industry Unit Sales Revised Estimate Compared with First
Quarter 2005 Actual
---------------------------------------------------------------------------
Agricultural Equipment:
Agricultural Tractors:
- Under 40 horsepower n/a 6 % n/a n/a n/a
- Over 40 horsepower n/a 4 % n/a n/a n/a
Total Tractors 21 % 5 % 2 % (11)% 51 %
Combine Harvesters (8)% 8 % (9)% (36)% 15 %
Total Tractors and
Combines 20 % 5 % 2 % (14)% 50 %
Construction Equipment:
Light Construction
Equipment:
Tractor Loaders &
Backhoes 5 % 0 % (15)% 17 % 23 %
Skid Steer Loaders 6 % 2 % 3 % 67 % 22 %
Other Light Equipment 23 % 48 % 14 % 70 % 20 %
Total Light Equipment 15 % 15 % 9 % 30 % 21 %
Total Heavy Equipment 20 % 25 % 4 % 28 % 25 %
Total Light & Heavy
Equipment 17 % 18 % 8 % 29 % 23 %
---------------------------------------------------------------------------
Second Quarter 2006 Industry Unit Sales Revised Estimate Compared with
Second Quarter 2005 Actual
---------------------------------------------------------------------------
Agricultural Equipment:
Agricultural Tractors:
- Under 40 horsepower n/a (2)% n/a n/a n/a
- Over 40 horsepower n/a (4)% n/a n/a n/a
Total Tractors 11 % (2)% (2)% (3)% 39 %
Combine Harvesters (4)% (2)% (4)% (47)% 7 %
Total Tractors and
Combines 11 % (2)% (2)% (5)% 38 %
Construction Equipment:
Light Construction
Equipment:
Tractor Loaders &
Backhoes 3 % (16)% (10)% 59 % 28 %
Skid Steer Loaders (4)% (10)% 7 % 4 % 16 %
Other Light Equipment 18 % 26 % 11 % 38 % 23 %
Total Light Equipment 9 % 0 % 8 % 42 % 23 %
Total Heavy Equipment 8 % (1)% 8 % 13 % 17 %
Total Light & Heavy
Equipment 9 % 0 % 8 % 26 % 20 %
---------------------------------------------------------------------------
Third Quarter 2006 Industry Unit Sales Revised Estimate Compared with
Third Quarter 2005 Actual
---------------------------------------------------------------------------
Agricultural Equipment:
Agricultural Tractors:
- Under 40 horsepower n/a (8)% n/a n/a n/a
- Over 40 horsepower n/a (8)% n/a n/a n/a
Total Tractors 2 % (8)% 0 % 3 % 9 %
Combine Harvesters (14)% (18)% (14)% (40)% 10 %
Total Tractors and
Combines 1 % (8)% 0 % 0 % 9 %
Construction Equipment:
Light Construction
Equipment:
Tractor Loaders &
Backhoes 9 % (15)% 7 % 37 % 35 %
Skid Steer Loaders (11)% (18)% (3)% 25 % 7 %
Other Light Equipment 18 % 8 % 24 % 21 % 17 %
Total Light Equipment 9 % (9)% 19 % 32 % 20 %
Total Heavy Equipment 13 % (2)% 18 % 28 % 20 %
Total Light & Heavy
Equipment 10 % (6)% 19 % 30 % 20 %
---------------------------------------------------------------------------
Fourth Quarter 2006 Industry Unit Sales Estimated Actual Compared with
Fourth Quarter 2005 Actual
---------------------------------------------------------------------------
Agricultural Equipment:
Agricultural Tractors
- Under 40 horsepower n/a (4)% n/a n/a n/a
- Over 40 horsepower n/a (3)% n/a n/a n/a
Total Tractors 4 % (4)% 11 % 14 % 6 %
Combine Harvesters (4)% 0 % 2 % (26)% 13 %
Total Tractors and
Combines 4 % (3)% 10 % 9 % 6 %
Construction Equipment:
Light Construction
Equipment:
Tractor Loaders &
Backhoes 9 % (20)% 12 % 32 % 43 %
Skid Steer Loaders (12)% (23)% 3 % 45 % 33 %
Other Light Equipment 15 % (7)% 24 % 39 % 18 %
Total Light Equipment 7 % (18)% 20 % 36 % 24 %
Total Heavy Equipment 16 % (5)% 24 % 29 % 31 %
Total Light & Heavy
Equipment 10 % (13)% 21 % 32 % 27 %
---------------------------------------------------------------------------
Full Year 2006 Industry Unit Sales Estimated Actual Compared with Full
Year 2005 Actual
---------------------------------------------------------------------------
Agricultural Equipment:
Agricultural Tractors
- Under 40 horsepower n/a (3)% n/a n/a n/a
- Over 40 horsepower n/a (3)% n/a n/a n/a
Total Tractors 9 % (3)% 3 % 1 % 25 %
Combine Harvesters (7)% (7)% (6)% (36)% 10 %
Total Tractors and
Combines 9 % (3)% 2 % (3)% 25 %
Construction Equipment:
Light Construction
Equipment:
Tractor Loaders &
Backhoes 7 % (13)% (2)% 37 % 33 %
Skid Steer Loaders (5)% (13)% 3 % 30 % 19 %
Other Light Equipment 18 % 17 % 17 % 39 % 19 %
Total Light Equipment 10 % (3)% 14 % 35 % 22 %
Total Heavy Equipment 14 % 3 % 13 % 24 % 23 %
Total Light & Heavy
Equipment 11 % (1)% 14 % 29 % 23 %
(1) Excluding India
CNH Global N.V.
Estimates of Worldwide Retail Industry Unit Sales Performance(1)
World-
wide N.A. W.E. L.A. ROW
'07 B(W) '07 B(W) '07 B(W) '07 B(W) '07 B(W)
======== ======== ========= ======== ========
-------------------------------------------------------------------------
Full Year 2007 Industry Unit Sales Forecast Compared with Full Year 2006
Estimated Actual
-------------------------------------------------------------------------
Agricultural
Equipment:
Agricultural
Tractors 0-2 % FLAT FLAT 0-3 % 5-10 %
Combine Harvesters (0-2)% (2-5)% FLAT 5-10 % (0-5)%
Construction
Equipment:
Total Light
Equipment 1-4 % (0-5)% 5-8% (4-8)% 0-3 %
Total Heavy
Equipment 2-5 % FLAT 3-5% (10-15)% 2-5 %
(1) Excluding India
CNH Global N.V.
Revenues and Net Sales
(Unaudited)
Three Months Ended Years Ended
December 31, December 31,
---------------------------- ----------------------------
% %
2006 2005 Change 2006 2005 Change
-------- -------- -------- -------- -------- --------
(In Millions)
Revenues:
Net sales
Agricultural
equipment $ 1,904 $ 1,793 6% $ 7,809 $ 7,843 -
Construction
equipment 1,085 1,028 6% 4,306 3,963 9%
-------- -------- -------- --------
Total net
sales 2,989 2,821 6% 12,115 11,806 3%
Financial
services 247 226 9% 952 801 19%
Eliminations
and other (25) (8) (69) (32)
-------- -------- -------- --------
Total
revenues $ 3,211 $ 3,039 6% $ 12,998 $ 12,575 3%
======== ======== ======== ========
Net sales:
North America $ 1,157 $ 1,343 (14%) $ 5,354 $ 5,699 (6%)
Western
Europe 1,045 892 17% 3,843 3,643 5%
Latin America 286 197 45% 1,001 766 31%
Rest of World 501 389 29% 1,917 1,698 13%
-------- -------- -------- --------
Total net
sales $ 2,989 $ 2,821 6% $ 12,115 $ 11,806 3%
======== ======== ======== ========
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED INCOME STATEMENTS
AND SUPPLEMENTAL INFORMATION
(Unaudited)
EQUIPMENT FINANCIAL
CONSOLIDATED OPERATIONS SERVICES
Three Months Three Months Three Months
Ended Ended Ended
December 31, December 31, December 31,
---------------- ---------------- ----------------
2006 2005 2006 2005 2006 2005
------- ------- ------- ------- ------- -------
(In Millions, except per share data)
Revenues
Net sales $ 2,989 $ 2,821 $ 2,989 $ 2,821 $ - $ -
Finance and
interest
income 222 218 41 39 247 226
------- ------- ------- ------- ------- -------
Total 3,211 3,039 3,030 2,860 247 226
------- ------- ------- ------- ------- -------
Costs and
Expenses
Cost of goods
sold 2,451 2,366 2,451 2,366 - -
Selling,
general and
administrative 337 306 278 246 59 60
Research and
development 96 82 96 82 - -
Restructuring 81 43 79 41 2 2
Interest
expense 130 149 66 89 82 77
Interest
compensation
to Financial
Services - - 64 44 - -
Other, net 87 72 55 50 15 7
------- ------- ------- ------- ------- --------
Total 3,182 3,018 3,089 2,918 158 146
------- ------- ------- ------- ------- --------
Income (loss)
before income
taxes, minority
interest and
equity in income
of unconsolidated
subsidiaries and
affiliates 29 21 (59) (58) 89 80
Income tax
provision
(benefit) 4 21 (27) (6) 32 27
Minority
interest (1) 7 (1) 8 - -
Equity in income
of unconsolidated
subsidiaries
and affiliates:
Financial
Services 2 2 59 55 2 2
Equipment
Operations 7 12 7 12 - -
------- ------- ------- ------- ------- --------
Net income $ 35 $ 7 $ 35 $ 7 $ 59 $ 55
======= ======= ======= ======= ======= ========
Weighted average
shares outstanding:
Basic 236.1 134.7
======= =======
Diluted 237.7 234.8
======= =======
Basic and diluted
earnings per
share ("EPS"):
Basic:
EPS before
restructuring,
net of tax $ 0.39 $ 0.17
======= =======
EPS $ 0.15 $ 0.03
======= =======
Diluted:
EPS before
restructuring,
net of tax $ 0.39 $ 0.17
======= =======
EPS $ 0.15 $ 0.03
======= =======
Dividends per
share $ - $ -
======= =======
See Notes to Condensed Consolidated Financial Statements.
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED INCOME STATEMENTS
AND SUPPLEMENTAL INFORMATION
(Unaudited)
EQUIPMENT FINANCIAL
CONSOLIDATED OPERATIONS SERVICES
Years Ended Years Ended Years Ended
December 31, December 31, December 31,
----------------- ----------------- -------------
2006 2005 2006 2005 2006 2005
-------- -------- -------- -------- ------ ------
(In Millions, except per share data)
Revenues
Net sales $ 12,115 $ 11,806 $ 12,115 $ 11,806 $ - $ -
Finance and
interest
income 883 769 177 129 952 801
-------- -------- -------- -------- ------ -----
Total 12,998 12,575 12,292 11,935 952 801
-------- -------- -------- -------- ------ -----
Costs and Expenses
Cost of goods sold 9,933 9,934 9,933 9,934 - -
Selling, general
and administrative 1,248 1,177 1,015 964 233 213
Research and
development 367 303 367 303 - -
Restructuring 96 73 94 71 2 2
Interest expense 578 551 321 341 340 267
Interest
compensation to
Financial Services - - 235 159 - -
Other, net 359 280 233 188 54 36
-------- -------- -------- -------- ----- -----
Total 12,581 12,318 12,198 11,960 629 518
-------- -------- -------- -------- ----- -----
Income (loss) before
income taxes,
minority interest
and equity in income
of unconsolidated
subsidiaries and
affiliates 417 257 94 (25) 323 283
Income tax provision 165 116 56 24 109 92
Minority interest 16 26 16 27 - -
Equity in income of
unconsolidated
subsidiaries and
affiliates:
Financial Services 8 9 222 200 8 9
Equipment Operations 48 39 48 39 - -
-------- -------- -------- -------- ----- -----
Net income $ 292 $ 163 $ 292 $ 163 $ 222 $ 200
======== ======== ======== ======== ===== =====
Weighted average
shares outstanding:
Basic 213.4 134.3
======== ========
Diluted 236.8 234.4
======== ========
Basic and diluted
earnings per share
("EPS"):
Basic:
EPS before
restructuring,
net of tax $ 1.70 $ 1.01
======== ========
EPS $ 1.37 $ 0.77
======== ========
Diluted:
EPS before
restructuring,
net of tax $ 1.53 $ 0.95
======== ========
EPS $ 1.23 $ 0.70
======== ========
Dividends per share $ 0.25 $ 0.25
======== ========
See Notes to Condensed Consolidated Financial Statements.
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
AND SUPPLEMENTAL INFORMATION
(Unaudited)
EQUIPMENT FINANCIAL
CONSOLIDATED OPERATIONS SERVICES
----------------- ----------------- -----------------
December December December December December December
31, 31, 31, 31, 31, 31,
2006 2005 2006 2005 2006 2005
-------- -------- -------- -------- -------- --------
(In Millions)
Assets
Cash and cash
equivalents $ 1,174 $ 1,245 $ 703 $ 858 $ 471 $ 387
Deposits in Fiat
affiliates cash
management pools 497 580 496 578 1 2
Accounts, notes
receivable and
other - net 6,549 5,841 1,314 1,243 5,344 4,670
Intersegment notes
receivable - - 1,445 1,067 - -
Inventories 2,735 2,466 2,735 2,466 - -
Property, plant and
equipment - net 1,378 1,311 1,366 1,303 12 8
Equipment on
operating leases -
net 254 180 - - 254 180
Investment in
Financial Services - - 1,788 1,587 - -
Investments in
unconsolidated
affiliates 457 449 354 353 103 96
Goodwill and
intangibles 3,073 3,163 2,927 3,018 146 145
Other assets 2,157 2,083 1,386 1,486 771 597
-------- -------- -------- -------- -------- --------
Total Assets $ 18,274 $ 17,318 $ 14,514 $ 13,959 $ 7,102 $ 6,085
======== ======== ======== ======== ======== ========
Liabilities and
Equity
Short-term debt $ 1,270 $ 1,522 $ 488 $ 826 $ 782 $ 696
Intersegment
short-term debt - - - - 1,348 1,067
Accounts payable 1,881 1,609 1,939 1,641 42 32
Long-term debt,
including current
maturities 5,132 4,765 2,419 2,396 2,713 2,369
Intersegment
long-term debt - - - - 97 -
Accrued and other
liabilities 4,871 4,370 4,548 4,044 332 334
-------- -------- -------- -------- -------- --------
Total Liabilities 13,154 12,266 9,394 8,907 5,314 4,498
Shareholders'
equity 5,120 5,052 5,120 5,052 1,788 1,587
-------- -------- -------- -------- -------- --------
Total Liabilities
and Equity $ 18,274 $ 17,318 $ 14,514 $ 13,959 $ 7,102 $ 6,085
======== ======== ======== ======== ======== ========
Total debt less
cash and cash
equivalents,
deposits in Fiat
affiliates cash
management pools
and intersegment
notes receivables
("Net Debt") $ 4,731 $ 4,462 $ 263 $ 719 $ 4,468 $ 3,743
======== ======== ======== ======== ======== ========
See Notes to Condensed Consolidated Financial Statements.
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
AND SUPPLEMENTAL INFORMATION
(Unaudited)
EQUIPMENT FINANCIAL
CONSOLIDATED OPERATIONS SERVICES
Years Ended Years Ended Years Ended
December 31, December 31, December 31,
---------------- ---------------- ----------------
2006 2005 2006 2005 2006 2005
------- ------- ------- ------- ------- -------
(In Millions)
Operating
Activities:
Net income $ 292 $ 163 $ 292 $ 163 $ 222 $ 200
Adjustments to
reconcile net
income to net
cash from
operating
activities:
Depreciation
and
amortization 316 309 273 263 43 46
Intersegment
activity - - 29 56 (29) (56)
Changes in
operating
assets and
liabilities 46 (88) 274 292 (228) (380)
Other, net (47) 165 (153) 75 (47) (50)
------- ------- ------- ------- ------- -------
Net cash from
operating
activities 607 549 715 849 (39) (240)
------- ------- ------- ------- ------- -------
Investing Activities:
Expenditures for
property, plant
and equipment (218) (155) (213) (152) (5) (3)
Expenditures for
equipment on
operating leases (173) (111) - - (173) (111)
Net (additions)
collections from
retail
receivables and
related
securitizations (227) 171 - - (227) 171
Net (deposits in)
withdrawals from
Fiat affiliates
cash management
pools 128 506 127 493 1 13
Other, net 56 105 (2) (10) 58 102
------- ------- ------- ------- ------- -------
Net cash from
investing activities (434) 516 (88) 331 (346) 172
------- ------- ------- ------- ------- -------
Financing Activities:
Intersegment
activity - - (378) 23 378 (23)
Net increase
(decrease) in
indebtedness (208) (739) (346) (941) 138 202
Dividends paid (59) (34) (59) (34) (74) (60)
Other, net (9) - (9) - 5 13
------- ------- ------- ------- ------- -------
Net cash from
financing activities (276) (773) (792) (952) 447 132
------- ------- ------- ------- ------- -------
Other, net 32 22 10 (7) 22 29
------- ------- ------- ------- ------- -------
Increase (decrease)
in cash and cash
equivalents (71) 314 (155) 221 84 93
Cash and cash
equivalents,
beginning of year 1,245 931 858 637 387 294
------- ------- ------- ------- ------- -------
Cash and cash
equivalents, end of
year $ 1,174 $ 1,245 $ 703 $ 858 $ 471 $ 387
======= ======= ======= ======= ======= =======
See Notes to Condensed Consolidated Financial Statements.
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