CNH Global N.V. Announced Financial Results for The Quarter Ended June 30, 2012

CNH Global N.V. (CNH) announced financial results for the quarter ended June 30, 2012. For the quarter, net sales increased 3% (9% constant currency basis) to $5.0 billion as firm global demand for agricultural equipment, on the back of favorable agricultural commodity prices, compensated for a more mixed trading environment in the construction equipment sector. Equipment Operations posted a comparable period improvement in gross profit margin of 80 basis points to 21% for the second quarter and an Operating Profit of $524 million as higher revenues and positive net pricing compensated for increased SG&A expenditures and R&D investment and the negative impact from foreign exchange. Equipment net sales during the quarter were 80% agricultural equipment and 20% construction equipment, in line with last year. The geographical distribution of net sales in the quarter was 43% North America, 35% EAME & CIS, 13% Latin America, and 9% APAC markets. In the second quarter, Equipment Operations generated $789 million in cash flow from operations, a 67% increase over the prior year, resulting in $281 million cash generation on a year-to-date basis, as improved net sales and operating performance more than offset the increased net working capital needed to support business activity. Year-to-date capital expenditures totaled $206 million, a 64% 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. Through the second quarter, 72% of the capital expenditures were on new product development (inclusive of interim and final Tier 4 emission compliant equipment) and production capacity. 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 $2.8 billion. The 32% effective tax rate for the second quarter is within the Group's full year 2012 forecasted effective tax rate guidance of 32% to 35%. For the quarter, net income, before restructuring and exceptional items, was $356 million, an increase of 11.3% as a result of solid trading conditions in most regions during the quarter, satisfactory industrial performance, and improved performance by the Group's financial services business offsetting negative currency translation in the period and reduced contribution from unconsolidated industrial subsidiaries. This resulted in the Group generating diluted earnings per share of $1.47 (before restructuring and exceptional items), up 11% compared to $1.33 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 Previously Released Guidance For The Full Year 2012 Despite a mixed economic climate in certain of the Groups' operating regions, the negative effect from the translation of earnings to the U.S. dollar, and the poor climatic conditions in the United States, CNH confirms its full year financial guidance. Revenues up 5%+ Operating Margin in excess of 8.6% Source:finance.yahoo.com