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 July 2005

CNH GLOBAL N.V.

(Translation of Registrant’s Name Into English)

World Trade Center
Tower B, 10^th 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      ü      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      ü     

     (If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ___.)

 

 

FOR IMMEDIATE RELEASE
For more information contact:

Rich Nelson External Communications (847) 955-3939
Albert Trefts, Jr. Investor Relations (847) 955-3821

CNH Reports Second Quarter Net Income of $114 Million

n		Construction Equipment Profit Improvement Continues
n		CNH Capital Continues Strong Performance
n		Agricultural Equipment Market in Latin America Deteriorates
n		Materials Costs and Supply Issues Constrain Results

Lake Forest, Illinois (July 27, 2005) CNH Global N.V. (NYSE:CNH) today reported second quarter 2005 net income of $114 million, compared to second quarter 2004 net income of $83 million. Results include restructuring charges, net of tax, of $4 million in the second quarter of 2005, and $24 million in last year’s second quarter. Second quarter diluted earnings per share were up 36% to $.49, compared to $.36 in the second quarter of 2004.

“Net income was slightly better than expected, despite a greater than anticipated deterioration of the agricultural sector in Latin America,” said Harold Boyanovsky, CNH President and Chief Executive Officer. “Higher materials costs and shortages of some key supplies constrained results. We expect these trends to impact performance in the second half as well.

“Nevertheless, the robust growth of the global construction equipment industry contributed to the continuing improvement in CNH results in this sector, and CNH Capital continued its strong performance.”

Highlights from the quarter included the following:

	•		In all regions, pricing actions enabled the company to recover increased materials costs in the quarter. This was particularly favorable news for both the agricultural equipment and construction equipment businesses in Europe, which had not been able to offset materials cost increases earlier. However, materials costs are not moderating as much as the company had anticipated.
	•		After delaying their launch to ensure quality and reliability, CNH began shipping its new generation of skid steer loaders and track loaders. The company anticipates improved volumes in the third and fourth quarters of 2005.
	•		In the quarter, Equipment Operations net debt declined by $726 million.
	•		CNH’s Case construction equipment business was awarded a five-year contract by the U.S. government. Case will supply more than 500 backhoe loaders, coupled with parts and service, in a contract valued at $51 million, with the first delivery in 2006.

•

CNH Capital leveraged improved portfolio performance and strong investor demand for its $750 million wholesale receivables asset backed securitization (“ABS”) transaction, confirming CNH Capital’s funding capacity.

EQUIPMENT OPERATIONS — Second Quarter Financial Results

Net sales of equipment, comprising the company’s agricultural and construction equipment businesses, were $3.4 billion for the second quarter, compared to $3.3 billion for the same period in 2004, with most of the increase due to currency variations.

CNH Agricultural Equipment Net Sales

	•		Agricultural equipment net sales were $2.3 billion for the second quarter, essentially unchanged from the prior year, but down 3% excluding currency variations.
	•		Sales in Latin America declined by approximately 60%, excluding currency variations, continuing last quarter’s sharp market contraction, in particular for combines. Sales in Europe were down 10%, excluding currency, in line with combine industry declines and the company’s de-stocking actions. Sales in Rest of World markets were up 12% and up 4% in North America in a flat industry environment.
	•		Second quarter 2005 production of agricultural tractors and combines was approximately 2% lower than retail unit sales.

CNH Construction Equipment Net Sales

	•		Net sales of construction equipment were $1.1 billion for the second quarter, an increase of 13%, compared to $1.0 billion in the second quarter 2004, and up 10% excluding currency variations.
	•		Three of four regions contributed to sales growth in the quarter: North America was up 15% exclusive of currency variations and Latin America was over 50%, but on a smaller base. Sales in Europe decreased 2%, as the company continued to adjust its sales and marketing activities as a result of its previously announced brand rationalization. Sales in Rest of World markets were up 1%.
	•		Production of CNH’s major construction equipment products was higher than retail unit sales by approximately 10%.

Gross Margin

Equipment Operations gross margin (net sales of equipment less cost of goods sold) for agricultural and construction equipment was $574 million in the second quarter of 2005, compared to $551 million in the second quarter last year.

	•		Agricultural equipment gross margin declined slightly compared to the prior year’s second quarter, as most of the improvement in North America was offset by a substantial decline in volumes of higher-margin combines in Latin America and Europe.
	•		Construction equipment gross margin was higher than in the prior-year second quarter, benefiting from volume improvements, mostly in North America, and increased pricing, which were partially offset by materials costs that were greater than anticipated, and other economics increases.

Industrial Operating Margin

Equipment Operations industrial operating margin (defined as net sales, less cost of goods sold, SG&A and R&D costs) was $248 million in the second quarter of 2005, or 7.3% of net sales, compared to $256 million or 7.8%, in the same period of 2004. The improvement in gross margin dollars, noted above, was offset by an increase in selected investments to better support CNH’s dealers, improve product quality, enhance global sourcing initiatives, and strengthen European logistics operations.

Adjusted EBITDA

Adjusted EBITDA for Equipment Operations was $274 million for the quarter, or 8.1% of net sales, compared to $259 million in the second quarter of 2004, or 7.9% of net sales. Interest coverage was 5.1 times for the second quarter 2005, compared to 4.3 times for the prior year second quarter.

FINANCIAL SERVICES — Second Quarter Financial Results

Financial Services operations reported second quarter 2005 net income of $44 million, compared to $29 million for the second quarter last year. Improved yields on the wholesale portfolio and higher retail and wholesale ABS volumes were the principal factors contributing to the improvement in net income compared to the prior period.

CNH CONSOLIDATED INCOME BEFORE TAXES, MINORITY INTEREST AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES

CNH’s consolidated second quarter 2005 income before taxes, minority interest, and equity in income of unconsolidated subsidiaries was $165 million, compared to $108 million for the second quarter last year. The year-over-year improvement of $57 million reflects the combination of the improvements in Equipment Operations and at Financial Services in the period, compared with the second quarter 2004. These results include pre-tax restructuring charges of $6 million in the second quarter of 2005 and $39 million in last year’s second quarter.

CNH — Year-to-Date Financial Results

CNH’s net income for the first six months was $129 million, compared to $74 million for the first six months of 2004. Results include restructuring charges, net of tax, of $8 million in the first half of 2005, and $37 million in the first half of 2004. First half diluted earnings per share were up 72% to $.55, compared to $.32 in the first half of 2004.

EQUIPMENT OPERATIONS — Year-to-Date Financial Results

Net sales of equipment, comprising the company’s agricultural and construction equipment businesses, were $6.2 billion for the first six months of 2005, compared to $5.9 billion for the same period in 2004. Net of currency variations, net sales increased by 2% over the prior year’s first half.

Adjusted EBITDA for Equipment Operations was $404 million for the first half of 2005, or 6.5% of net sales, compared to $387 million in the first half of 2004, or 6.5% of net sales. Interest coverage was 3.6 times for the first half of 2005, compared to 3.1 times for the prior year first half.

FINANCIAL SERVICES — Year-to-Date Financial Results

Financial Services operations reported first half 2005 net income of $93 million, compared to $56 million for the first half last year. This improvement reflects the first quarter 2005 $1.4 billion retail asset backed securitization transaction, lower risks costs associated with the improvements

in Financial Services receivables portfolio quality, improved yields on the wholesale portfolio, and higher retail and wholesale ABS volumes in the second quarter.

CNH CONSOLIDATED INCOME BEFORE TAXES, MINORITY INTEREST AND EQUITY IN INCOME OF UNCONSOLIDATED SUBSIDIARIES

CNH’s consolidated first half 2005 income before taxes, minority interest, and equity in income of unconsolidated subsidiaries was $188 million, compared to $99 million for the first half last year. The year-over-year improvement of $89 million reflects the combination of the improvements in Equipment Operations and at Financial Services in the period, compared with the first half of 2004. These results include pre-tax restructuring charges of $11 million in the first half of 2005 and $58 million in last year’s first half.

NET DEBT AND OPERATING CASH FLOW

Equipment Operations net debt (defined as total debt less cash and cash equivalents, deposits in Fiat affiliates cash management pools and inter-segment receivables) was $824 million at June 30, 2005, compared to $1.6 billion on March 31, 2005 and $1.8 billion at June 30, 2004. The decline in net debt in the quarter reflected $882 million in cash from operating activities.

A decrease in working capital (defined as accounts and notes receivable, excluding inter-segment notes receivable, plus inventories less accounts payable), net of currency variations, contributed approximately $472 million to cash from operating activities, in the quarter. This decrease is primarily driven by an expansion of our accounts receivables securitization program, particularly in Europe, of approximately $345 million. This represents a further step in CNH’s initiative to consolidate management of receivables within its Financial Services operations.

Excluding the expansion of our accounts receivables program, working capital decreased by $127 million, compared with an increase of approximately $106 million in the second quarter last year. At incurred currency rates, working capital on June 30, 2005 was $2.4 billion, compared to $3.1 billion on June 30, 2004.

In addition to the improvements in working capital, net income, seasonal increases in accruals, and a $60 million dividend from Financial Services to Equipment Operations contributed the balance of the cash from operating activities in the quarter.

CNH has become an eligible borrower under Fiat S.p.A.’s recently closed 1 billion Euro credit facility agreement. Under the new facility, CNH has been allocated exclusive rights to 300 million Euros of the syndicated credit line, plus the opportunity to access the remainder of any unutilized capacity. This arrangement replaces CNH’s expiring $1.8 billion credit line which was never utilized and was a back-up to support CNH’s then-existing commercial paper program. With the new facility, other existing facilities and liquidity on its balance sheet, CNH believes its liquidity needs are adequately covered.

Financial Services net debt increased approximately $800 million to $4.0 billion on June 30, 2005 from $3.2 billion on March 31, 2005, reflecting primarily the increased portfolio of receivables under management.

CNH OUTLOOK FOR 2005

CNH believes that for the full year 2005, the agricultural equipment market will be at the same level as last year, although slightly different by region than was previously anticipated. CNH expects that total tractor industry sales in North America should be slightly lower than was previously forecast, but over-40-horsepower tractors are expected to be better than last year by 5%-10%. In Western Europe, the industry unit sales of tractors should be down about 5%, as previously forecast. In Latin America, CNH expects that full-year tractor industry volumes will

be about 25% below last year and sales of combines will be down 60%-65%. Industry sales in rest-of-world markets are now expected to be up slightly.

CNH believes that, for the construction equipment industry, all regions will be stronger except for Western Europe, which will be slightly weaker than previously expected. CNH’s estimates of major agricultural and construction equipment industry retail unit sales, by major market area, are included in the supplemental information provided at the end of the release.

CNH expects that its net sales of equipment for the full year 2005 will increase by up to 5%. Including selected investments to better support CNH’s dealers, improve product quality, enhance global sourcing initiatives, and strengthen European logistics operations, the company expects that its consolidated income before taxes, minority interest and equity in income of unconsolidated subsidiaries will improve by 60%-70%. This improvement is due to reduced restructuring expenses, improvement in Financial Services results, and improvements in Equipment Operations. The full benefit of these expected improvements will be partially offset by an increase in our effective tax rate when compared to 2004. As a result, we anticipate net income before restructuring will improve by approximately 10% to 15% compared with the full year 2004, depending upon market conditions and commodity cost evolution. Net of tax, restructuring costs for the full year are expected to be approximately $65 million.

For the third quarter, the company expects its revenues from net sales of equipment to increase slightly compared with the third quarter of 2004. Including the effects of our increased spending for SG&A and R&D, CNH expects that net income, excluding restructuring costs, will be approximately the same as in the third quarter last year. Net of tax, restructuring costs for the third quarter are expected to be approximately $10 million.

Further, the company expects Equipment Operations to generate approximately $250 million of cash flow during the year, after including its third-quarter contribution to its US defined benefit pension plans of about $100 million, as previously anticipated. CNH expects to use that cash to further reduce Equipment Operations net debt, when compared with year-end 2004 levels.

###

CNH management will hold a conference call later today to review its second quarter results. The conference call webcast will begin at approximately 10:00 a.m. U.S. Eastern Time. 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 power behind leading agricultural and construction equipment brands of the Case and New Holland brand families. Supported by more than 11,400 dealers in 160 countries, CNH brings together the knowledge and heritage of its brands with the strength and resources of its worldwide commercial, industrial, product support and finance organizations. More information about CNH and its products can be found on line at www.cnh.com.

Forward looking statements. This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this press release, including statements regarding our competitive strengths, business strategy, future financial position, budgets, projected costs and plans and objectives of management, are forward-looking statements. These statements may include terminology such as “may,” “will,” “expect,” “should,” “intend,” “estimate,” “anticipate,” “believe,” “outlook,” “continue,” “remain,” “on track,” “goal,” or similar terminology.

Our outlook is predominantly based on our interpretation of what we consider key economic assumptions and involves risks and uncertainties that could cause actual results to differ. Crop production and commodity prices are strongly affected by weather and can fluctuate significantly. Housing starts and other

construction activity are sensitive to interest rates and government spending. Some of the other significant factors for us include general economic and capital market conditions, the cyclical nature of our business, customer buying patterns and preferences, foreign currency exchange rate movements, our hedging practices, our and our customers’ access to credit, actions by rating agencies concerning the ratings on our debt and asset backed securities and the ratings of Fiat S.p.A., risks related to our relationship with Fiat S.p.A., political uncertainty and civil unrest or war 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, results of our research and development activities, changes in environmental laws, employee and labor relations, pension and health care costs, the cost and availability of supplies from our suppliers, raw material costs and availability, energy prices, real estate values, animal diseases, crop pests, harvest yields, government farm programs and consumer confidence, housing starts and construction activity, concerns related to modified organisms and fuel and fertilizer costs. Additionally, our achievement of the anticipated benefits of our profit improvement initiatives depends upon, among other things, industry volumes as well as our ability to effectively rationalize our operations and to execute our dual brand strategy. Further information concerning factors that could significantly affect expected results is included in our Form 20-F for the year ended December 31, 2004.

We can give no assurance that the expectations reflected in our forward-looking statements will prove to be correct. Our actual results could differ materially from those anticipated in these forward-looking statements. All written and oral forward-looking statements attributable to us are expressly qualified in their entirety by the factors we disclose that could cause our actual results to differ materially from our expectations. We undertake no obligation to update or revise publicly any forward-looking statements.

CNH Global N.V.
Estimates of Worldwide Retail Industry Unit Sales Performance⁽¹⁾

		Worldwide				N.A.				W.E.				L.A.				ROW
		’05 B(W)				’05 B(W)				’05 B(W)				’05 B(W)				’05 B(W)
First Quarter 2005 Industry Unit Sales Revised Estimate Compared with First Quarter 2004 Actual
Agricultural Equipment:
Agricultural Tractors:
- Under 40 horsepower			n/a				0	%			n/a				n/a				n/a
- Over 40 horsepower			n/a				14	%			n/a				n/a				n/a
Total Tractors			3	%			6	%			(4	)%			(1	)%			7	%
Combine Harvesters			(16	)%			39	%			9	%			(54	)%			26	%
Total Tractors and Combines			2	%			7	%			(3	)%			(14	)%			7	%
Construction Equipment:
Light Construction Equipment:
Tractor Loaders & Backhoes			27	%			21	%			8	%			70	%			41	%
Skid Steer Loaders			6	%			4	%			25	%			(2	)%			1	%
Other Light Equipment			19	%			47	%			17	%			45	%			9	%
Total Light Equipment			17	%			17	%			17	%			47	%			14	%
Total Heavy Equipment			(1	)%			19	%			13	%			41	%			(18	)%
Total Light & Heavy Equipment			9	%			18	%			16	%			43	%			(5	)%
Second Quarter 2005 Industry Unit Sales Estimate Compared with Second Quarter 2004 Actual
Agricultural Equipment:
Agricultural Tractors:
- Under 40 horsepower			n/a				(8	)%			n/a				n/a				n/a
- Over 40 horsepower			n/a				7	%			n/a				n/a				n/a
Total Tractors			(3	)%			(2	)%			(2	)%			(25	)%			3	%
Combine Harvesters			(15	)%			3	%			(8	)%			(69	)%			17	%
Total Tractors and Combines			(3	)%			(2	)%			(2	)%			(30	)%			3	%
Construction Equipment:
Light Construction Equipment:
Tractor Loaders & Backhoes			15	%			5	%			11	%			45	%			32	%
Skid Steer Loaders			1	%			(4	)%			7	%			63	%			22	%
Other Light Equipment			20	%			35	%			14	%			115	%			17	%
Total Light Equipment			13	%			8	%			13	%			54	%			22	%
Total Heavy Equipment			10	%			20	%			(2	)%			30	%			7	%
Total Light & Heavy Equipment			12	%			12	%			9	%			40	%			13	%
Third Quarter 2005 Industry Unit Sales Forecast Compared with Third Quarter 2004 Actual
Total Tractors			(3	)%			(2	)%			(8	)%			(32	)%			6	%
Combine Harvesters			(28	)%			(2	)%			(8	)%			(75	)%			(34	)%
Total Light Equipment			12	%			23	%			1	%			(9	)%			11	%
Total Heavy Equipment			16	%			20	%			3	%			2	%			21	%
Full Year 2005 Industry Unit Sales Forecast Compared with Full Year 2004 Estimated Actual
Total Tractors			(2	)%			0	%			(5	)%			(25	)%			5	%
Combine Harvesters			(18	)%			9	%			1	%			(63	)%			2	%
Total Light Equipment			10	%			12	%			6	%			17	%			11	%
Total Heavy Equipment			7	%			15	%			1	%			11	%			4	%

CNH Global N.V.
Revenues and Net Sales
(Unaudited)

		Three Months Ended												Six Months Ended
		June 30,												June 30,
										%												%
		2005				2004				Change				2005				2004				Change
		(In Millions)
Revenues:
Net sales
Agricultural equipment		$	2,301			$	2,295				—			$	4,232			$	4,213				—
Construction equipment			1,093				967				13	%			1,985				1,712				16	%
Total net sales			3,394				3,262				4	%			6,217				5,925				5	%
Financial services			184				147				25	%			371				298				24	%
Eliminations and other			(7	)			(11	)							(14	)			(18	)
Total revenues		$	3,571			$	3,398				5	%		$	6,574			$	6,205				6	%
Net sales:
North America		$	1,690			$	1,544				9	%		$	2,990			$	2,740				9	%
Western Europe			1,043				1,077				(3	%)			1,967				1,975				—
Latin America			177				217				(18	%)			377				449				(16	%)
Rest of World			484				424				14	%			883				761				16	%
Total net sales		$	3,394			$	3,262				4	%		$	6,217			$	5,925				5	%

CNH GLOBAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND SUPPLEMENTAL INFORMATION
(Unaudited)

										EQUIPMENT								FINANCIAL
		CONSOLIDATED								OPERATIONS								SERVICES
		Three Months Ended								Three Months Ended								Three Months Ended
		June 30,								June 30,								June 30,
		2005				2004				2005				2004				2005				2004
		(In Millions, except per share data)
Revenues
Net sales		$	3,394			$	3,262			$	3,394			$	3,262			$	—			$	—
Finance and interest income			177				136				32				20				184				147
Total			3,571				3,398				3,426				3,282				184				147
Costs and Expenses
Cost of goods sold			2,820				2,711				2,820				2,711				—				—
Selling, general and administrative			301				274				250				228				52				47
Research and development			76				67				76				67				—				—
Restructuring			6				39				6				39				—				—
Interest expense			135				120				86				80				62				50
Interest compensation to Financial Services			—				—				41				30				—				—
Other, net			68				79				45				60				8				9
Total			3,406				3,290				3,324				3,215				122				106
Income before income taxes, minority interest and equity in income of unconsolidated subsidiaries and affiliates			165				108				102				67				62				41
Income tax provision (benefit)			57				24				36				10				20				14
Minority interest			8				7				8				7								—
Equity in income of unconsolidated subsidiaries and affiliates:
Financial Services			2				2				44				29				2				2
Equipment Operations			12				4				12				4				—				—
Net income		$	114			$	83			$	114			$	83			$	44			$	29
Weighted Average Shares Outstanding:
Basic			134.1				133.2
Diluted			234.3				233.4
Basic and diluted earnings per share (“EPS”):
Basic:
EPS before restructuring, net of tax		$	0.60			$	0.80
EPS		$	0.58			$	0.62
Diluted:
EPS before restructuring, net of tax		$	0.50			$	0.46
EPS		$	0.49			$	0.36
Dividends per share		$	0.25			$	0.25

See Notes to Condensed Financial Statements.

CNH GLOBAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND SUPPLEMENTAL INFORMATION
(Unaudited)

										EQUIPMENT								FINANCIAL
		CONSOLIDATED								OPERATIONS								SERVICES
		Six Months Ended								Six Months Ended								Six Months Ended
		June 30,								June 30,								June 30,
		2005				2004				2005				2004				2005				2004
										(In Millions, except per share data)
Revenues
Net sales		$	6,217			$	5,925			$	6,217			$	5,925			$	—			$	—
Finance and interest income			357				280				58				36				371				298
Total			6,574				6,205				6,275				5,961				371				298
Costs and Expenses
Cost of goods sold			5,234				4,960				5,234				4,960				—				—
Selling, general and administrative			593				555				493				460				100				95
Research and development			143				132				143				132				—				—
Restructuring			11				58				11				57				—				1
Interest expense			266				241				170				159				121				96
Interest compensation to Financial Services			—				—				73				55				—				—
Other, net			139				160				95				119				18				26
Total			6,386				6,106				6,219				5,942				239				218
Income before income taxes, minority interest and equity in income of unconsolidated subsidiaries and affiliates			188				99				56				19				132				80
Income tax provision (benefit)			70				27				27				(1	)			43				28
Minority interest			12				8				12				8				—				—
Equity in income of unconsolidated subsidiaries and affiliates:
Financial Services			4				4				93				56				4				4
Equipment Operations			19				6				19				6				—				—
Net income		$	129			$	74			$	129			$	74			$	93			$	56
Weighted Average Shares Outstanding:
Basic			134.0				133.0
Diluted			234.2				233.2
Basic and diluted earnings per share (“EPS”):
Basic:
EPS before restructuring, net of tax		$	0.67			$	0.83
EPS		$	0.64			$	0.56
Diluted:
EPS before restructuring, net of tax		$	0.58			$	0.48
EPS		$	0.55			$	0.32
Dividends per share		$	0.25			$	0.25

See Notes to Condensed Financial Statements.

CNH GLOBAL N.V.
CONDENSED CONSOLIDATED BALANCE SHEETS
AND SUPPLEMENTAL INFORMATION
(Unaudited)

										EQUIPMENT								FINANCIAL
		CONSOLIDATED								OPERATIONS								SERVICES
		June 30,				December 31				June 30,				December 31				June 30,				December 31
		2005				2004				2005				2004				2005				2004
		(In Millions)
Assets
Cash and cash equivalents		$	843			$	931			$	471			$	637			$	372			$	294
Deposits in Fiat affiliates cash management pools			1,428				1,151				1,419				1,136				9				15
Accounts, notes receivable and other — net			6,396				5,895				1,656				1,596				4,821				4,393
Intersegment notes receivable			—				—				1,062				1,114				17				24
Inventories			2,612				2,515				2,612				2,515				—				—
Property, plant and equipment — net			1,348				1,478				1,341				1,470				7				8
Equipment on operating leases — net			175				215				—				—				175				215
Investment in Financial Services			—				—				1,451				1,419				—				—
Investments in unconsolidated affiliates			442				457				354				373				88				84
Goodwill and intangibles			3,203				3,236				3,058				3,090				145				146
Other assets			2,175				2,202				1,619				1,644				596				599
Total Assets		$	18,622			$	18,080			$	15,043			$	14,994			$	6,230			$	5,778
Liabilities and Equity
Short-term debt		$	2,209			$	2,057			$	819			$	1,064			$	1,390			$	993
Intersegment short-term debt			—				—				17				24				1,062				414
Accounts payable			1,847				1,657				1,861				1,679				58				66
Long-term debt			4,909				4,906				2,940				3,084				1,969				1,822
Intersegment long-term debt			—				—				—				—				—				700
Accrued and other liabilities			4,682				4,431				4,431				4,114				300				364
Total Liabilities			13,647				13,051				10,068				9,965				4,779				4,359
Equity			4,975				5,029				4,975				5,029				1,451				1,419
Total Liabilities and Equity		$	18,622			$	18,080			$	15,043			$	14,994			$	6,230			$	5,778
Total debt less cash and cash equivalents, deposits in Fiat affiliates cash management pools and intersegment notes receivables (“Net Debt”)		$	4,847			$	4,881			$	824			$	1,285			$	4,023			$	3,596

See Notes to Condensed Financial Statements.

CNH GLOBAL N.V.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
AND SUPPLEMENTAL INFORMATION
(Unaudited)

										EQUIPMENT								FINANCIAL
		CONSOLIDATED								OPERATIONS								SERVICES
		Six Months Ended								Six Months Ended								Six Months Ended
		June 30,								June 30,								June 30,
		2005				2004				2005				2004				2005				2004
		(In Millions)
Operating Activities:
Net income		$	129			$	74			$	129			$	74			$	93			$	56
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization			150				169				125				133				25				36
Intersegment activity			—				—				(2	)			(105	)			2				105
Changes in operating assets and liabilities			(396	)			(39	)			372				76				(768	)			(115	)
Other, net			(3	)			56				1				1				(37	)			(1	)
Net cash from operating activities			(120	)			260				625				179				(685	)			81
Investing Activities:
Expenditures for property, plant and equipment			(48	)			(67	)			(47	)			(66	)			(1	)			(1	)
Expenditures for equipment on operating leases			(44	)			(27	)			—				—				(44	)			(27	)
Net (additions) collections from retail receivables and related securitizations			334				(963	)			—								334				(963	)
Net (deposits in) withdrawals from Fiat affiliates cash management pools			(331	)			(295	)			(341	)			(262	)			10				(33	)
Other, net (primarily acquisitions and divestitures)			11				93				(10	)			(25	)			21				86
Net cash from investing activities			(78	)			(1,259	)			(398	)			(353	)			320				(938	)
Financing Activities:
Intersegment activity			—				—				45				177				(45	)			(177	)
Net increase (decrease) in indebtedness			141				980				(399	)			(55	)			540				1,035
Dividends paid			(34	)			(37	)			(34	)			(37	)			(60	)			—
Other, net			—				(1	)			—				(1	)			—				32
Net cash from financing activities			107				942				(388	)			84				435				890
Other, net			3				(11	)			(5	)			(2	)			8				(9	)
Increase (decrease) in cash and cash equivalents			(88	)			(68	)			(166	)			(92	)			78				24
Cash and cash equivalents, beginning of period			931				619				637				486				294				133
Cash and cash equivalents, end of period		$	843			$	551			$	471			$	394			$	372			$	157

See Notes to Condensed Financial Statements.

CNH GLOBAL N.V.
Notes to Unaudited Condensed Consolidated Financial Statements

1.		Principles of Consolidation and Basis of Presentation — The accompanying unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the consolidated results of CNH Global N.V. and its consolidated subsidiaries (“CNH” or the “Company”) in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”); however, because of their condensed nature, they do not include all of the information and note disclosures required by U.S. GAAP for complete financial statements. These financial statements should therefore be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2004 included in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on April 29, 2005 and any subsequently filed Annual Reports on Form 20-F of the Company.
		CNH is controlled by Fiat Netherlands Holding N.V., a wholly owned subsidiary of Fiat S.p.A. (“Fiat”). As of the date of these statements, Fiat owned over 83% of CNH’s outstanding common shares and all of the issued and outstanding Series A Preference Shares (“Series A Preferred Stock”).
		The condensed consolidated financial statements include the accounts of CNH’s majority-owned and controlled subsidiaries and reflect the interests of the minority owners of the subsidiaries that are not fully owned for the periods presented, as applicable. The operations and key financial measures and financial analysis differ significantly for manufacturing and distribution businesses and financial services businesses; therefore, management believes that certain supplemental disclosures are important in understanding the consolidated operations and financial results of CNH. 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 method basis. The supplemental financial information captioned “Financial Services” reflects the consolidation of CNH’s financial services businesses.
		Reclassification of cash flows related to retail receivables, change in accounting policy for Deposits with Fiat and other reclassifications
		Reclassification of cash flows related to retail receivables — CNH has made certain reclassifications of items in its condensed consolidated cash flow statement which it believes improves the presentation of the items that were reclassified. The accompanying 2004 condensed cash flows have been reclassified to conform to the 2005 classification.
		During 2004, the staff of the SEC expressed its views regarding the classifications of certain cash flows by companies with captive finance subsidiaries. As a result of these public comments, management decided to make reclassifications to the condensed consolidated statements of cash flows with respect to certain of its receivables. Previously, CNH recognized activity related to all receivables as part of the cash flows from operating activities within the condensed consolidated statements of cash flows, including cash flows arising from the origination of retail receivables, the securitization of retail receivables, and cash collections related to certificated retained interests.
		CNH made a reclassification to move the activity related to the investment in retail receivables from the operating activity section to the investing activity section of the condensed consolidated statements of cash flows. The reclassification classifies cash receipts from the sale of inventory as operating activities and classifies cash flows from investing in retail receivables as investing activities. The disclosures added to the investing activity section in this condensed presentation are included in “Net (addition) collections from retail receivables and related securitization.”
		Change in accounting policy for Deposits with Fiat — In connection with the aforementioned reclassification, CNH reviewed its presentation of cash flows and cash and cash equivalent balances on its balance sheet. As a result of this review, it was determined that CNH would change its accounting policy defining cash equivalents and correspondingly reclassify its

CNH GLOBAL N.V.
Notes to Unaudited Condensed Consolidated Financial Statements

		balance sheet and cash flow presentation. The new policy classifies “Cash with Fiat Affiliates,” which was previously included in cash equivalents, as “Deposits in Fiat affiliates cash management pools” and reflects cash flows arising from deposits in and withdrawals from such cash pools as cash flows from investing activities. Although none of the agreements or conditions governing these deposits has materially changed since the inception of the cash management arrangements, CNH changed its presentation of such deposits in its 2004 Form 20-F to show them as a separate investment and not as a component of cash and cash equivalents. CNH continues to have the contractual right to withdraw these funds on demand or terminate these cash management arrangements upon a seven-day prior notice, and CNH continues to access funds deposited in these accounts on a daily basis.
		The condensed statements of cash flows for the six months ended June 30, 2004 have been reclassified to conform to this presentation.
		A summary of the effects of these reclassifications is as follows:

		2004
						Retail				Change in
		As previously				receivables				accounting				As currently
		reported				reclassification				policy				reported
		(in Millions)
Condensed consolidated statement of cash flows
Net cash from operating activities		$	(703	)		$	963			$	—			$	260
Net cash from investing activities			(1	)			(963	)			(295	)			(1,259	)
Other, net			(32	)			—				21				(11	)
Equipment Operations statement of cash flows
Net cash from operating activities			179				—				—				179
Net cash from investing activities			(91	)			—				(262	)			(353	)
Other, net			(23	)			—				21				(2	)
Financial Services statement of cash flows
Net cash from operating activities			(882	)			963				—				81
Net cash from investing activities			58				(963	)			(33	)			(938	)
Other, net			(9	)			—				—				(9	)

		Other — In addition, certain other reclassifications of prior year amounts have been made in order to conform to the current year presentation.
2.		Stock-Based Compensation Plans — CNH has stock-based employee compensation plans which are more fully described in Note 18, “Option and Incentive Plans,” to our 2004 Form 20-F. In December 2004, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 123 Revised “Share Based Payment” (“SFAS No. 123 Revised”) which is effective July 1, 2005. SFAS No. 123 Revised requires the use of a fair value based method of accounting for stock-based employee compensation. The statement will be applied using a Modified Prospective Method under which compensation cost is recognized beginning on the effective date and continuing until participants are fully vested. In April 2005, the SEC announced the adoption of a new rule that amends the compliance dates for SFAS No. 123 Revised. The SEC’s new rule allows companies to implement SFAS No. 123 Revised at the beginning of their next fiscal year, instead of the next reporting period, that begins after June 15, 2005. The Company has not yet determined the impact of adopting SFAS No. 123 Revised.
		In 2003, CNH adopted the fair value based method of accounting for stock-based compensation using the Prospective Method. Additionally, compensation expense is reflected in net income for stock options granted with an exercise price less than the quoted market price of CNH common shares on the date of grant.

CNH GLOBAL N.V.
Notes to Unaudited Condensed Consolidated Financial Statements

The following table illustrates the effect on net income and earnings per share if the Company had applied the fair value recognition provisions of SFAS No. 123 “Share Based Payment” to all stock-based compensation for the three and six months ended June 30, 2005 and 2004:

				Three Months								Six Months
				Ended								Ended
				June 30,								June 30,
				2005				2004				2005				2004
				(in Millions, except per share data)
Net income, as reported				$	114			$	83			$	129			$	74
Add:		Stock-based employee compensation expense included in reported net income, net of tax			—				—				—			—
Deduct:		Total stock-based employee compensation expense determined under fair value based methods, net of tax			(1	)			(1	)			(2	)			(2	)
Pro forma net income					113				82				127				72
Dividend to common shares					(34	)							(34	)
Earnings allocated to Series A Preferred Stock					(36	)			—				(42	)			—
Pro forma earnings available to common shareholders					43				82				51				72
Dividend to common shares					34				—				34				—
Pro forma net income available to common shareholders				$	77			$	82			$	85			$	72
Weighted average shares:
		Basic			134.1				133.2				134.0				133.0
		Diluted			234.3				233.4				234.2				233.2
Earnings per share (“EPS”):
	As reported:
		Basic		$	0.58			$	0.62			$	0.64			$	0.56
		Diluted		$	0.49			$	0.36			$	0.55			$	0.32
	Pro forma:
		Basic		$	0.57			$	0.62			$	0.63			$	0.54
		Diluted		$	0.48			$	0.35			$	0.54			$	0.31