Net sales increased 10.7% to $3.9 billion • Operating profit improved 105% to $330 million • Construction equipment segment posts first profit since 2008 • Second quarter EPS before exceptional items at $0.59 per share • Probable upgrade to FY guidance at the end of Q3 

This morning CNH Global N.V. (NYSE: CNH) announced its financial results for the second quarter that ended June 30, 2010. For the quarter, net sales increased 10.7% (7.9% on a constant currency basis) to $3.9 billion as positive performance in the Americas and Rest of World markets more than offset difficult economic conditions in Western and Eastern Europe.

Equipment operations posted an operating profit of $330 million as a result of higher volumes, better pricing and reduced industrial costs. Operating profit improved $169 million at a margin of 8.4%.

The segmental net sales split was 80% agricultural equipment and 20% construction equipment, largely in line with the comparable period of 2009, on a constant currency basis.

The geographical distribution of revenue for the period was 42% North America, 24% Western Europe, 17% Latin America, and 17% Rest of World. The Group's ability to access the global agricultural and construction equipment markets through its dispersed manufacturing and dealership networks allowed CNH to increase revenues.

Equipment operations generated $1.3 billion in cash flow from operating activities in the first half. This was used to finance capital expenditures of $90 million with the balance reducing group indebtedness. During the quarter, CNH Equipment Operations completed a new refinancing transaction through the issuance of $1.5 billion in notes with a maturity of 2017, improving the Group's debt duration profile.

The proceeds will be used to retire the Group's existing $500 million in notes due 2014 and to pay down certain inter-company debt by the end of 2010. CNH Equipment Operations ended the period with a net cash position of $1.8 billion, an increase of $2.1 billion from the comparable period in 2009.

Net Income before restructuring and exceptional items for the period at $140 million ($144 million inclusive of exceptional items) resulted in the Group generating an EPS of $0.59 ($0.60 inclusive of exceptional items) compared to a loss of $(0.06) in the comparable prior year period.