SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF APRIL, 2002.
CNH GLOBAL N.V.
(TRANSLATION OF REGISTRANT'S NAME INTO ENGLISH)
WORLD TRADE CENTER
TOWER B, 10TH FLOOR
AMSTERDAM AIRPORT
THE NETHERLANDS
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(Indicate by check mark whether the registrant files or will file
annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
----------- ------------
(Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934.)
Yes No X
----------- -----------
(If "Yes" is marked, indicate below the file number assigned to
the registrant in connection with Rule 12g3-2(b): 82- _______.)
[CNH LOGO]
NEWS RELEASE
CNH REPORTS FIRST QUARTER RESULTS
FOR MORE INFORMATION CONTACT:
JEFFREY T. WALSH Media Relations (1) 847 955 3939
ALBERT TREFTS, JR. Investor Relations (1) 847 955 3821
- Strong retail performance delivered market share gains in both the
agricultural and construction equipment businesses.
- Revenues were down slightly year-over-year due to planned cuts in
production and wholesales in order to reduce inventory.
- The loss, before restructuring charges, was $.17 per share for the quarter,
unchanged from last year.
Lake Forest, IL (April 25, 2002) CNH Global N.V. (NYSE:CNH) today reported first
quarter consolidated revenues of $2.389 billion, compared to $2.454 billion in
the first quarter of 2001. Planned dealer destocking actions in construction
equipment and unfavorable foreign exchange rates adversely impacted revenues,
partially offset by stronger sales of agricultural equipment and incremental
revenue from acquisitions, mainly the acquisition of Kobelco's North American
operations.
CNH reported a first quarter loss before restructuring charges of $46 million,
unchanged from the first quarter of 2001, excluding goodwill amortization. The
loss per share, before restructuring, was $.17 for the quarter, also unchanged
from 2001 excluding goodwill amortization. On a net basis, the loss for the
quarter was $49 million, unchanged from the first quarter of 2001 when goodwill
amortization is excluded.
During the quarter the company announced its plan to increase equity and reduce
debt through two separate and concurrent actions: a public offering of 50
million newly issued shares of common stock, and the issuance of equity to
majority shareholder Fiat (FIA.MI) in exchange for $1.3 billion of debt.
Presently, the company expects to close the equity offering and issue the new
common shares in the second quarter of 2002.
"Strong retail demand for our Case IH and New Holland equipment allowed us to
gain share in a flat industry and increase our agricultural revenue," Paolo
Monferino, CNH president and chief executive officer, said. "In the weak
construction equipment market, we have increased our share in the heavy
equipment segment and significantly improved our backhoe loader share. At the
same time, we reduced significantly our company and dealer inventories across
all construction equipment product lines through production cuts of over 36%. We
are extremely pleased that we were able to make such
- CNH Global N.V. Global Management Office 100 South Saunders Rd, Lake Forest,
IL 60045 U.S.A. http://www.cnh.com -
------------------
dramatic cuts in our production and wholesale activity with only a modest impact
on our total revenues for the quarter."
Equipment Operations First Quarter Performance. First quarter net sales from
-----------------------------------------------
Equipment Operations were $2.239 billion, compared to $2.286 billion for the
same period in 2001. 2002 revenues were negatively impacted by the company's
planned inventory reduction actions, the continued weakness in the construction
equipment industry, and unfavorable foreign exchange rates, partially offset by
stronger sales of agricultural equipment and incremental revenue from
acquisitions.
Revenues from sales of agricultural equipment totaled $1.552 billion, up from
$1.518 billion in 2001, even though industry sales were essentially flat on a
global basis, as expected. When adjusted for the impact of adverse foreign
exchange rates, sales of agricultural equipment rose 6%. In both North America
and Latin America, unit sales of agricultural equipment were higher than in the
first quarter of 2001, resulting in share gains in combines as well as in most
categories of agricultural tractors. Gains in the Americas were partly offset by
a slight drop in unit sales in Western Europe, Asia and developing markets.
During the quarter, CNH overproduced retail unit demand in preparation for the
selling season, but at a rate 15% lower than in 2001.
Compared to the first quarter of 2001, construction equipment revenues were down
11% to $687 million. Excluding sales by Kobelco, revenues declined by 16%,
reflecting mainly the company's aggressive dealer destocking initiative, and
secondarily the industry decline. In North America, the company maintained its
share of the heavy equipment segment and significantly increased its backhoe
loader share. In Western Europe, CNH gained share overall, particularly in heavy
equipment. Compared to the first quarter of 2001, CNH cut both company and
dealer inventories of construction equipment, reducing production by over 36%.
The major factor impacting CNH's Equipment Operations gross margin for the first
quarter was the company's decision to cut production in order to manage dealer
and company inventories. This resulted in lower wholesale volumes, lower
absorption of fixed costs, compounded by an adverse country mix in construction
equipment, which were partly offset by higher margins on newly launched products
and material cost reductions. Adverse foreign exchange rates and higher employee
benefit and pension costs also negatively impacted the gross margin.
Compared to the first quarter of 2001, Equipment Operations' SG&A expenses
declined in absolute terms and as a percentage of revenues as the company's
profit improvement initiatives and favorable foreign exchange rates more than
offset additional expenses of about $5 million from newly consolidated
acquisitions.
Since the merger, CNH has reduced its SG&A expenses as a percent of revenues
from 11.8%, on a pro forma basis, to 9.6% in the first quarter of 2002, close to
its SG&A target level of 9%, despite a significant reduction in revenues due to
lower industry volumes, adverse foreign exchange rates and required
divestitures.
CNH's merger-related profit improvements totaled $20 million in the first
quarter bringing the total since the merger to $453 million. In addition, the
process reengineering initiatives to improve the effectiveness of its
administrative activities and its product development process, which were
announced in the third quarter of 2001, have now yielded total savings of an
additional $70 million over the past three quarters.
Page 2
- CNH Global N.V. Global Management Office 100 South Saunders Rd, Lake Forest,
IL 60045 U.S.A. http://www.cnh.com -
------------------
During the first quarter of 2002, the company's employment level was reduced by
approximately 600 personnel, excluding acquisitions. This brings the total
reduction in employment since the merger to approximately 8,500 personnel, or
24%, which was the target set, at the time of the merger, to be achieved by the
end of 2003. Total employment, including new acquisitions, was approximately
29,100 on March 31, 2002.
Financial Services Operations. For the first quarter of 2002, CNH Capital
------------------------------
reported net income of $9 million, compared to a net loss of $3 million for the
same period last year. Lower loan losses and a gain on the successful completion
of an ABS transaction earlier than planned in the year were partly offset by a
reduced spread on new originations. Originations in the core business were up
slightly compared to the first quarter of 2001.
Balance Sheet. In keeping with the normal seasonal pattern, Equipment Operations
--------------
net debt increased during the quarter by $228 million, excluding the impact of
the Kobelco acquisition ($155 million), versus an increase of $372 million in
the first quarter of 2001.
Market Outlook for Agricultural Equipment. CNH anticipates that industry sales
------------------------------------------
of agricultural equipment will remain at or near 2001 levels through the balance
of 2002. In North America, the first quarter was flat overall, as expected. The
company does not anticipate total industry sales to show any significant
departure from 2001 levels through the balance of the year. Sales of under 40
horsepower tractors are now expected to remain at, or somewhat above, 2001
levels throughout the year. Sales of over 40 horsepower tractors are expected to
remain at or slightly below 2001 levels through 2002. In Latin America, CNH
expects industry sales to remain at 2001 levels at least through the third
quarter of 2002. No significant change is anticipated in industry sales for
Western Europe.
Market Outlook for Construction Equipment. CNH expects industry sales of
------------------------------------------
construction equipment to remain weak in the second quarter in all its major
markets except Latin America, which is expected to be essentially unchanged from
2001. In the second half of the year, industry sales of construction equipment
should follow the anticipated economic recovery as it materializes. The company
expects the upturn to occur first in North America, where fourth quarter sales
could approach 2001 levels. Recovery in Western Europe is not expected to be as
rapid.
CNH Outlook for the Second Quarter. Compared to 2001, CNH expects revenues to
-----------------------------------
improve in the second quarter of 2002, as its agricultural equipment business
continues to grow. The company expects that there will be continued pressure on
margins, due to mix and continued destocking actions. For the quarter, CNH
expects to report a profit, before restructuring, close to or slightly above the
$.13 earnings per share, before restructuring and goodwill, recorded in the
second quarter of 2001. This excludes any potential impact of the company's
announced plans to reduce debt and increase equity.
CNH Outlook for 2002. CNH believes that the growing strength of its global
---------------------
agricultural business, along with anticipated second-half improvements in the
construction equipment industry, will contribute significantly to the company's
bottom line in the second half of the year. New product introductions should
also contribute to the bottom line, particularly in the fourth quarter.
CNH expects to record improved bottom line performance in 2002 even as the
company continues dealer destocking by keeping wholesale levels below retail
sales levels and production below wholesale levels. Through the company's
various profit improvement initiatives, including the reengineering of its key
processes, CNH believes that further
Page 3
- CNH Global N.V. Global Management Office 100 South Saunders Rd, Lake Forest,
IL 60045 U.S.A. http://www.cnh.com -
------------------
reductions in SG&A and R&D may be achieved during 2002. Based on current
assumptions, CNH believes that the company's better than expected performance in
the first quarter will be reflected in the full year result, bringing the
expected loss per share in 2002 closer to breakeven, before restructuring, and
without considering the potential impact of the company's initiatives to reduce
debt and increase equity.
###
CNH management will hold a conference call later today to review its first
quarter 2002 results. The conference call webcast will begin at approximately
10:00 am U.S. EDT. This call can be accessed through the investor information
section of the company's web site at www.cnh.com and is being carried by CCBN.
-----------
CNH is the number one manufacturer of agricultural tractors and combines in the
world, the third largest maker of construction equipment, and has one of the
industry's largest equipment finance operations. Revenues in 2001 totaled $9.7
billion. Based in the United States, CNH's network of dealers and distributors
operates in over 160 countries. CNH agricultural products are sold under the
Case IH, New Holland and Steyr brands. CNH construction equipment is sold under
the Case, Fiatallis, Fiat-Hitachi, Kobelco, New Holland, and O&K brands.
Forward Looking Statements. The information contained herein involves
---------------------------
forward-looking statements based on what CNH considers key economic assumptions,
and involves risk and uncertainties that could cause actual results to differ.
Some significant factors for CNH include general economic and capital market
conditions, the cyclical nature of its business, foreign currency movements,
hedging practices, CNH's and its customers' access to credit, political
uncertainty and civil unrest 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 government subsidies and international trade regulations),
technological difficulties, changes in environmental laws, employee and labor
relations, weather conditions, energy prices, real estate values, animal
diseases, crop pests, harvest yields, government farm programs and consumer
confidence, housing starts and construction activity, concerns pertaining to
genetically modified organisms, fuel and fertilizer costs.
Additionally, CNH's achievement of the anticipated benefits of the merger of New
Holland and Case, including the realization of expected annual operating
synergies, depends upon, among other things, industry volumes, as well as CNH's
ability to integrate effectively the operations and employees of New Holland and
Case, and to execute its multi-branding strategy. Further information concerning
factors that could significantly impact expected results is included in the
following sections of CNH's Form 20-F for 2000, as filed with the Securities and
Exchange Commission: Key Information; Information on the Company; Operating and
Financial Review and Prospects; Directors, Senior Management and Employees; and
Financial Information.
Page 4
- CNH Global N.V. Global Management Office 100 South Saunders Rd, Lake Forest,
IL 60045 U.S.A. http://www.cnh.com -
------------------
CNH GLOBAL N.V.
Revenues and Net Sales
(Dollars in Millions)
(Unaudited)
THREE MONTHS ENDED
MARCH 31,
---------------------------------
%
2002 2001 CHANGE
------ ------ ------
Revenues:
Net sales
Agricultural equipment $1,552 $1,518 2%
Construction equipment 687 768 (11%)
------ ------
Total net sales 2,239 2,286 (2%)
Financial Services 162 182 (11%)
Eliminations and other (12) (14)
------ ------
Total revenues $2,389 $2,454 (3%)
====== ======
Net sales:
North America $1,137 $1,050 8%
Western Europe 685 897 (24%)
Latin America 165 147 12%
Rest of World 252 192 31%
------ ------
Total net sales $2,239 $2,286 (2%)
====== ======
CNH GLOBAL N.V.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Millions, except per share data)
(Unaudited)
EQUIPMENT FINANCIAL
CONSOLIDATED OPERATIONS SERVICES
THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, MARCH 31, MARCH 31,
-------------------- -------------------- -------------------
2002 2001 2002 2001 2002 2001
------- ------- ------- ------- ------- -------
Revenues
Net sales $ 2,239 $ 2,286 $ 2,239 $ 2,286 $ - $ -
Finance and interest income 150 168 27 33 162 182
------- ------- ------- ------- ------- -------
Total 2,389 2,454 2,266 2,319 162 182
Costs and Expenses
Cost of goods sold 1,891 1,894 1,891 1,894 - -
Selling, general and administrative 278 303 216 228 62 74
Research and development 70 73 70 73 - -
Restructuring and other merger related costs 4 4 4 4 - -
Interest expense 155 184 127 140 68 92
Other, net 37 70 17 48 19 22
------- ------- ------- ------- ------- -------
Total 2,435 2,528 2,325 2,387 149 188
Equity in income (loss) of unconsolidated
subsidiaries and affiliates:
Financial Services 1 - 9 (3) 1 -
Equipment Operations (6) (19) (6) (20) - 1
------- ------- ------- ------- ------- -------
Income (loss) before taxes and minority interest (51) (93) (56) (91) 14 (5)
Income tax provision (benefit) (3) (23) (8) (21) 5 (2)
Minority interest 1 - 1 - - -
------- ------- ------- ------- ------- -------
Net income (loss) $ (49) $ (70) $ (49) $ (70) $ 9 $ (3)
======= ======= ======= ======= ======= =======
Basic and diluted earnings (loss) per common share (EPS):
EPS before goodwill and restructuring and other
merger related costs ($0.17) ($0.17)
EPS before restructuring and other merger
related costs ($0.17) ($0.24)
EPS ($0.18) ($0.25)
See Notes to Financial Statements.
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Millions)
(Unaudited)
EQUIPMENT FINANCIAL
CONSOLIDATED OPERATIONS SERVICES
--------------------- --------------------- ---------------------
MARCH 31, DECEMBER 31, MARCH 31, DECEMBER 31, MARCH 31, DECEMBER 31,
2002 2001 2002 2001 2002 2001
------- ----------- ------- ----------- ------- -----------
Assets
Cash and cash equivalents $ 382 $ 663 $ 267 $ 378 $ 115 $ 285
Accounts, notes receivable and other - net 6,590 6,160 2,209 1,993 4,530 4,413
Intersegment notes receivable - - 1,587 1,636 247 344
Inventories 2,257 2,204 2,257 2,204 - -
Property, plant and equipment - net 1,343 1,354 1,330 1,333 13 21
Equipment on operating leases - net 600 612 - - 600 612
Investment in Financial Services - - 1,158 1,147 - -
Investments in unconsolidated affiliates 314 266 282 235 32 31
Goodwill and intangibles 3,706 3,647 3,566 3,508 140 139
Other assets 2,243 2,306 1,777 1,799 466 507
------- ------- ------- ------- ------- -------
Total Assets $17,435 $17,212 $14,433 $14,233 $ 6,143 $ 6,352
======= ======= ======= ======= ======= =======
Liabilities and Equity
Short-term debt $ 4,171 $ 3,217 $ 3,052 $ 2,043 $ 1,119 $ 1,174
Intersegment short-term debt - - 247 344 488 524
Accounts payable 1,343 1,217 1,378 1,287 94 166
Long-term debt 5,895 6,646 4,167 4,856 1,728 1,790
Intersegment long-term debt - - - - 1,099 1,112
Accrued and other liabilities 4,191 4,223 3,754 3,794 457 439
------- ------- ------- ------- ------- -------
15,600 15,303 12,598 12,324 4,985 5,205
Equity 1,835 1,909 1,835 1,909 1,158 1,147
------- ------- ------- ------- ------- -------
Total Liabilities and Equity $17,435 $17,212 $14,433 $14,233 $ 6,143 $ 6,352
======= ======= ======= ======= ======= =======
See Notes to Financial Statements.
CNH GLOBAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Millions)
(Unaudited)
EQUIPMENT FINANCIAL
CONSOLIDATED OPERATIONS SERVICES
THREE MONTHS ENDED THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, MARCH 31, MARCH 31,
----------------- ----------------- -----------------
2002 2001 2002 2001 2002 2001
----- ----- ----- ----- ----- -----
Operating Activities:
Net income (loss) $ (49) $ (70) $ (49) $ (70) $ 9 $ (3)
Adjustments to reconcile net income (loss) to net
cash from operating activities:
Depreciation and amortization 87 104 60 78 27 26
Changes in operating assets and liabilities (329) (893) (264) (297) (65) (595)
Other, net 8 (63) (8) (68) 7 7
----- ----- ----- ----- ----- -----
Net cash from operating activities (283) (922) (261) (357) (22) (565)
----- ----- ----- ----- ----- -----
Investing Activities:
Expenditures for property, plant and equipment (35) (19) (34) (19) (1) -
Expenditures for equipment on operating leases (59) (20) - - (59) (20)
Other, net (primarily acquisitions and divestitures) (65) 47 (121) 48 45 (1)
----- ----- ----- ----- ----- -----
Net cash from investing activities (159) 8 (155) 29 (15) (21)
----- ----- ----- ----- ----- -----
Financing Activities:
Intersegment activity - - 15 127 (15) (127)
Net increase (decrease) in indebtedness 172 440 301 (81) (129) 521
Other, net - - - - 11 -
----- ----- ----- ----- ----- -----
Net cash from financing activities 172 440 316 46 (133) 394
----- ----- ----- ----- ----- -----
Other, net (11) (35) (11) (30) - (5)
----- ----- ----- ----- ----- -----
Increase (decrease) in cash and cash equivalents (281) (509) (111) (312) (170) (197)
Cash and cash equivalents, beginning of period 663 886 378 593 285 293
----- ----- ----- ----- ----- -----
Cash and cash equivalents, end of period $ 382 $ 377 $ 267 $ 281 $ 115 $ 96
===== ===== ===== ===== ===== =====
See Notes to Financial Statements.
CNH GLOBAL N.V.
Notes to Financial Statements
(1) The accompanying financial statements reflect the consolidated results
of CNH Global N.V. and its consolidated subsidiaries ("CNH") and have
been prepared in accordance with generally accepted accounting
principles in the United States ("US GAAP"). The supplemental financial
information captioned "Equipment Operations" includes the results of
operations of CNH's agricultural and construction equipment operations,
with the Company's financial services businesses reflected on the
equity basis. The supplemental financial information captioned
"Financial Services" reflects the consolidation of CNH's credit
subsidiaries.
(2) During the first quarter of 2002, CNH acquired a 65% interest in
Kobelco America for approximately $101 million net of cash acquired and
assumption of debt. In addition, CNH acquired a 10% interest in Kobelco
Construction Machinery in Japan and other certain intangibles for a
total of $78 million. CNH received proceeds of approximately $24
million from the divestiture of CNH's construction equipment operations
in Australia, Asia and China to Kobelco.
(3) CNH has three reportable operating segments: agricultural equipment,
construction equipment and financial services. CNH evaluates segment
performance and reports to Fiat S.p.A. ("Fiat") based on results of
operations in accordance with the accounting principles followed by
Fiat. CNH revenues reported to Fiat exclude finance and interest income
of the Equipment Operations. Fiat defines results of operations as the
income (loss) before equity (income) loss in unconsolidated
subsidiaries, net financial expenses, restructuring and taxes. Net
financial expenses primarily include finance and interest income and
expenses of the operations.
Three Months Ended
March 31,
------------------------------
2002 2001
------- -------
A reconciliation of consolidated net loss per US GAAP to results of operations is as follows (in millions):
Net loss per US GAAP statements $ (49) $ (70)
US GAAP adjustments:
Amortization of goodwill and other intangibles (41) (12)
Other 5 5
Minority interest 1 -
Income tax provision (benefit) (3) (22)
Restructuring charge - 4
Net financial expense 108 127
Equity in (income) loss of unconsolidated
subsidiaries and affiliates 5 19
------- -------
Results of operations $ 26 $ 51
======= =======
The following summarizes results of operations by segment (in millions):
Agricultural equipment $ 38 $ 30
Construction equipment (29) 23
Financial services 20 5
Eliminations (3) (7)
------- -------
Results of operations $ 26 $ 51
======= =======
A summary of CNH's results as reported to Fiat is as follows (in millions):
Revenues $ 2,385 $ 2,431
Results of operations $ 26 $ 51
(4) CNH's 2002 and 2001 effective income tax rates were 6% and 25%,
respectively. The tax rates differ from the Dutch statutory rate of 35%
primarily due to differences in the geographical mix of profits, losses
in jurisdictions for which no immediate tax benefit is recognizable,
non-deductible expenses, and changes in
CNH GLOBAL N.V.
Notes to Financial Statements
valuation reserves attributable to prior-year losses. CNH has been
consistent in its approach to benefitting losses in comparison to
previous periods.
(5) Earnings (loss) per common share ("EPS")
(in millions, except per share data):
Three Months Ended
March 31,
---------------------
2002 2001
------ ------
Basic and Diluted EPS
Net income (loss) $ (49) $ (70)
Restructuring charge, net of tax 3 3
------ ------
Net income (loss) before restructuring (46) (67)
Goodwill - 21
------ ------
Net income (loss) before goodwill and restructuring $ (46) $ (46)
====== ======
Weighted-average shares outstanding 277.1 277.0
EPS before goodwill and restructuring $(0.17) $(0.17)
EPS before restructuring $(0.17) $(0.24)
EPS $(0.18) $(0.25)
(6) During the three months ended March 31, 2002, CNH expensed $4 million
of restructuring and other merger-related costs. The restructuring and
other merger-related costs primarily relate to severance and other
costs related to headcount reductions. During the three months ended
March 31, 2002, CNH utilized approximately $23 million of its
restructuring reserves established during 2001 and 2000. The utilized
amounts primarily represent involuntary employee severance costs, as
well as costs related to the closing of existing facilities and other
costs. As of March 31, 2002, CNH had recorded $5 million in
merger-related restructuring reserves for costs to integrate the
Kobelco America operations.
(7) CNH fully, unconditionally and irrevocably guarantees Case
Corporation's $785 million in outstanding 6.25% Notes due 2003, 7.25%
Notes due 2005, and 7.25% Notes due 2016 that were issued pursuant to
two registration statements under the Securities Act of 1933, as
amended. Reference is made to Note 23, "Guarantee of Subsidiary's
Outstanding Debt Securities," of CNH's Form 20-F for the year ended
December 31, 2000 for further discussion.
(8) In July 2001, the FASB issued SFAS No. 142, "Goodwill and Other
Intangible Assets." SFAS No. 142 addresses financial accounting and
reporting for intangible assets and goodwill. The Statement requires
that goodwill and intangible assets having indefinite useful lives not
be amortized, rather tested at least annually for impairment.
Intangible assets that have finite useful lives will continue to be
amortized over their useful lives. As required by SFAS No. 142, CNH
adopted this new accounting standard on January 1, 2002. Application of
the non-amortization provision of SFAS No. 142 will result in a pretax
increase in earnings of approximately $116 million per year related to
goodwill and approximately $11 million per year related to acquired
trademarks with indefinite lives. During the first quarter of 2002, CNH
completed defining its reporting units and its impairment tests for
intangible assets having indefinite useful lives. The fair value of the
indefinite-lived intangible assets exceeded the carrying amount. CNH is
currently performing the required transitional impairment tests of
goodwill for each reporting unit. CNH has not yet determined the
financial impact, if any, of the goodwill transitional impairment
tests.
(9) On March 27, 2002, CNH's Board of Directors recommended a dividend of
10 cents per share for the year 2001. Payment of the dividend is
subject to approval at the Annual Shareholders Meeting, which will be
held on Tuesday, May 7, 2002.
(10) On March 27, 2002, CNH launched its plan to increase equity and reduce
debt through two separate and concurrent actions: a public offering of
50 million newly issued shares of common stock, and the issuance of
equity to majority shareholder Fiat in exchange for debt. In total, the
two actions are expected to increase CNH equity by over $1.5 billion.
SIGNATURES
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934,
THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED, THEREUNTO DULY AUTHORIZED.
CNH Global N.V.
By: /s/ Debra E. Kuper
-------------------------------
Debra E. Kuper
Assistant Secretary
April 25, 2002