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 May 2006

CNH GLOBAL N.V.

     (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 þ Form 40-F o

     (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 o No þ

     (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:

Thomas Witom		News and Information		(847) 955-3939
Albert Trefts, Jr.		Investor Relations		(847) 955-3821

CNH Reports First Quarter 2006 Net Income of $43 million, up $28 million from the First Quarter 2005

n Strong customer response to new brand focus

n Equipment Operations first quarter margins higher

n Full-year 2006 outlook stronger, with an expected range of diluted EPS of $1.30 to $1.40

LAKE FOREST, Illinois (May 2, 2006) — CNH Global N.V. (NYSE:CNH) today reported first quarter 2006 net income of $43 million, compared to net income of $15 million in the first quarter of 2005. Results include restructuring charges, net of tax, of $3 million in the first quarter of 2006, and $4 million in the first quarter of 2005. First quarter diluted earnings per share were $0.18, compared with $0.06 in 2005. Before restructuring, net of tax, first quarter diluted earnings were $0.20 per share, compared with $0.08 in 2005.

“Our results show that CNH’s renewed focus on customers and dealers, through its new global brand structure implemented last year, is gaining traction,” said Harold Boyanovsky, CNH president and chief executive officer. “Our global brands organization – Case IH and New Holland in agricultural equipment and Case and New Holland Construction in construction equipment – is making an impact in the marketplace. We now expect our net sales of equipment for the full year will rise by about 5 to 10%.

“We are particularly pleased by the 2 percentage point improvement in our Equipment Operations gross margin,” Boyanovsky said. “We are on track for another year of improved results.”

Highlights for the quarter included the following:

•

Case IH launched 10 new models of its highest horsepower agricultural tractors, featuring new Tier 3 compliant engines and innovative fuel-savings options

			including high pressure fuel injection systems and AutoShift and Powershift transmissions.
	•		New Holland introduced new models of its highest horsepower agricultural tractors with Tier 3 compliant engines.
	•		Case Construction launched two models of crawler excavators with Tier 3 compliant engines.
	•		New Holland Construction introduced a new line of five backhoe loaders and launched two new models of compact wheel loaders and new styling for its entire product offering.
	•		Pricing, in the quarter, was higher than all economics and currency related cost increases, resulting in positive net recovery. Pricing was strongest in North America. Raw material cost increases are moderating, except for oil related commodities which are continuing to increase.
	•		Research and development spending increased in the quarter from the same period in 2005, reflecting CNH’s investments in quality and product differentiation.
	•		Inventory levels at the end of the first quarter 2006, in terms of days supply, were the same as at the end of the first quarter last year.
	•		CNH Equipment Operations $500 million bond offering, completed in the quarter, is facilitating further repayment of debt to Fiat and debt guaranteed by Fiat.

EQUIPMENT OPERATIONS — First Quarter Financial Results

Net sales of equipment, comprising the company’s agricultural and construction equipment businesses, were $3.0 billion for the 2006 first quarter, compared to $2.8 billion for the same period in 2005. Net of currency variations, net sales increased by 6% over the prior year’s first quarter, including approximately 2% pricing.

Agricultural Equipment Net Sales

	•		Agricultural equipment net sales were $2.0 billion for the first quarter, essentially at the same level as the prior year, but up 2% excluding currency variations.
	•		Excluding currency variations, sales in North America are up 7% and sales in Rest-of-World markets were up 14%, while sales in Western Europe declined by 4%. Excluding currency variations, sales in Latin America declined by 18% as the market for combines has continued to decline, more than anticipated.
	•		Total retail unit sales of CNH’s agricultural tractors and combines increased by approximately 11% compared to the first quarter last year. First quarter 2006 production of agricultural tractors and combines was approximately 23% higher than retail, following the company’s normal seasonal pattern to increase company and dealer inventories in anticipation of the spring selling season.

Construction Equipment Net Sales

•

Net sales of construction equipment were approximately $1.0 billion for the first quarter, an increase of 14% compared to approximately $0.9 billion in the first quarter of last year, and up 16% excluding currency variations.

	•		Excluding currency variations, sales in North America were up 13%, in Latin America up 50%, in Rest-of-World markets up 40%, and in Western Europe sales were up 6%.
	•		Total retail unit sales of CNH’s major construction equipment products increased by approximately 21% compared to the first quarter last year. Production was higher than retail by approximately 13%.

Gross Margin

Equipment Operations gross margin (defined as net sales of equipment less cost of goods sold) for agricultural and construction equipment was $488 million in the first quarter of 2006, compared to $409 million in the first quarter of last year. As a percent of net sales, gross margin was 16.5% for the first quarter of 2006, up 2 percentage points from the first quarter of 2005.

	•		Agricultural equipment gross margin increased in both dollars and as a percent of net sales compared to the prior year’s first quarter. The improvement was more than accounted for by positive net pricing which was higher than currency and economics cost changes.
	•		Construction equipment gross margin also increased in both dollars and as a percent of net sales. Higher volume, mix, positive net price recovery and manufacturing efficiencies contributed to the improvement.

Industrial Operating Margin

Equipment Operations industrial operating margin (defined as net sales of equipment, less cost of goods sold, SG&A and R&D costs) was $154 million in the first quarter of 2006, or 5.2% of net sales, compared to $99 million or 3.5% of net sales in the same period of 2005. The improvement was driven by the higher Equipment Operations gross margin, noted above. Increased investments in R&D to improve product quality and increase product differentiation by brand, were partial offsets to the gross margin improvement. SG&A remained constant as a percent of net sales. Currency variations related to SG&A costs were favorable.

Adjusted EBITDA

Adjusted EBITDA for Equipment Operations (defined as net income excluding net interest expense, income tax provision (benefit), depreciation and amortization and restructuring) was $157 million for the quarter, or 5.3% of net sales, compared to $130 million in the first quarter of 2005, or 4.6% of net sales. Interest coverage, on a last 12 months basis (defined as total adjusted EBITDA for the past 12 months divided by total net interest expense for the past 12 months) was 3.9 times for the period ending March 31, 2006, compared with 3.0 times for the similar period ending March 31, 2005.

FINANCIAL SERVICES – First Quarter Financial Results

Financial Services operations reported net income of $52 million, compared to $49 million for the first quarter last year. In the first quarter of 2006, Financial Services in the U.S. closed a $1.2 billion retail asset backed securitization (“ABS”) transaction. In

the first quarter of 2005, Financial Services closed a $1.4 billion ABS transaction. Financial Services recorded higher credit losses in the first quarter of 2006 than in the first quarter of 2005, primarily related to its operations in Brazil.

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 intersegment notes receivables) was $0.6 billion at March 31, 2006, compared to $0.7 billion at December 31, 2005 and $1.6 billion at March 31, 2005. Net debt to net capitalization was 10.8% at March 31, 2006, down from 12.5% at December 31, 2005. Net debt decreased in the quarter principally because of the $122 million of cash generated by operating activities.

Cash generation was positive as improved net income and changes in accruals more than offset the small increase in working capital in the period. Working capital (defined as accounts and notes receivable, excluding inter-segment notes receivable, plus inventories less accounts payables), net of currency variations, increased by approximately $80 million in the quarter, substantially less than the $466 million increase in the first quarter of 2005. At incurred currency rates, working capital at March 31, 2006 was $2.2 billion, compared to $2.1 billion on December 31, 2005 and to $2.8 billion on March 31, 2005.

Financial Services Net Debt increased by approximately $240 million to $4.0 billion at March 31, 2006 from December 31, 2005, reflecting increases in the receivables portfolio, mostly in North America.

AGRICULTURAL EQUIPMENT MARKET OUTLOOK FOR 2006

CNH believes that for the full year 2006, worldwide industry unit retail sales of agricultural tractors will be slightly higher than in 2005. Industry unit retail sales of under-40 horsepower tractors in North America are expected to be down 5 to 10% from the high levels of 2005. Sales of over-40 horsepower tractors in North America are expected to remain at about the same level as in 2005. Agricultural tractor markets in Western Europe and Latin America could be down as much as 5%, but tractor industry unit retail sales in Rest-of-World markets are now expected to be up from 10 to 15%.

Worldwide industry unit retail sales of combine harvesters may be down about 10%, with North America down about 5% and Western Europe and Rest-of-World Markets down 5 to 10%. Industry sales in Latin America could be down 30 to 35%, continuing the decline which started in the fourth quarter of 2004.

CONSTRUCTION EQUIPMENT MARKET OUTLOOK FOR 2006

CNH believes that for the full year 2006, worldwide industry unit retail sales of construction equipment will be stronger than in 2005. Worldwide industry unit retail sales of heavy construction equipment are expected to increase by 5 to 10%, led by

increases of 10 to 15% in the North American and Rest-of-World markets. Industry unit sales in Western Europe and Latin America should be flat to perhaps down 5%.

Worldwide industry unit retail sales of light construction equipment also could be up 5 to 10%, with sales in North America, Latin America and Rest-of-World Markets all up 5 to 10%. In Western Europe, industry retail unit sales are expected to be flat to up as much as 5% compared with full year 2005.

CNH OUTLOOK FOR 2006

CNH expects that its net sales of equipment for the full year will increase in the range of 5 to 10%. Continuing pricing and ongoing margin improvements at Equipment Operations will drive better results. Profitability at Financial Services is expected to be up slightly compared with 2005 results. Results of CNH’s joint ventures are expected to remain in line with 2005. The benefit of the improvement at Equipment Operations will be partially offset by an increase in CNH’s effective tax rate, as previously stated.

CNH anticipates that 2006 diluted earnings per share, before restructuring, net of tax, should be in the range of $1.30 to $1.40, compared with $0.95 for the full year 2005.

Full-year restructuring costs, net of tax, are expected to be slightly higher than in 2005, as CNH recognizes the balance of the costs related to the planned manufacturing rationalization in Europe.

The company’s previously announced $120 million contribution to its U.S. defined benefit pension plan was made in April, 2006. After considering this contribution, Equipment Operations expects to generate cash and to use that cash to further reduce its net debt by approximately $250 million, as compared with year-end 2005 levels.

###

CNH management will hold a conference call later today to review its first 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 Case New Holland is a world leader in the agricultural and construction equipment businesses. Supported by more than 11,000 dealers in 160 countries, CNH brings together the knowledge and heritage of its Case and New Holland brand families with the strength and resources of its worldwide commercial, industrial, product support and finance organizations. More information about CNH and its Case and New Holland products can be found online 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,”, “could”, “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, relations with and the financial strength of dealers, 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 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, 2005.

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
		’06 B(W)				’06 B(W)				’06 B(W)				’06 B(W)				’06 B(W)
First Quarter 2006 Industry Unit Sales Preliminary Estimate Compared with First Quarter 2005 Actual
Agricultural Equipment:
Agricultural Tractors:
-   Under 40 horsepower			n/a				3	%			n/a				n/a				n/a
-   Over 40 horsepower			n/a				4	%			n/a				n/a				n/a
Total Tractors			14	%			4	%			2	%			(4	)%			33	%
Combine Harvesters			(12	)%			9	%			(12	)%			(37	)%			4	%
Total Tractors and Combines			13	%			4	%			1	%			(8	)%			32	%
Construction Equipment:
Light Construction Equipment:
Tractor Loaders & Backhoes			6	%			(1	)%			(11	)%			13	%			25	%
Skid Steer Loaders			5	%			2	%			(6	)%			77	%			27	%
Other Light Equipment			16	%			47	%			8	%			29	%			9	%
Total Light Equipment			11	%			15	%			4	%			27	%			14	%
Total Heavy Equipment			14	%			25	%			(4	)%			17	%			16	%
Total Light & Heavy Equipment			12	%			18	%			2	%			21	%			15	%
Second Quarter 2006 Industry Unit Sales Forecast Compared with Second Quarter 2005 Actual
Agricultural Equipment:
Agricultural Tractors			0-5	%			(0-5	)%			~(5	)%		FLAT					~20	%
Combine Harvesters			~(10	)%			(10-15	)%			(0-5	)%			(35-40	)%			(5-10	)%
Construction Equipment:
Total Light Equipment			5-10	%			10-15	%			0-5	%			10-15	%			5-10	%
Total Heavy Equipment			5-10	%			5-10	%			0-5	%			(0-5	)%			10-15	%
Full Year 2006 Industry Unit Sales Forecast Compared with Full Year 2005 Estimated Actual
Agricultural Equipment:
Agricultural Tractors			0-5	%			(0-5	)%			(0-5	)%			(0-5	)%			10-15	%
Combine Harvesters			~(10	)%			~(5	)%			(5-10	)%			(30-35	)%			(5-10	)%
Construction Equipment:
Total Light Equipment			5-10	%			5-10	%			0-5	%			5-10	%			5-10	%
Total Heavy Equipment			5-10	%			10-15	%			(0-5	)%			(0-5	)%			10-15	%

CNH Global N.V.
Estimates of 2005 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)
1st Qtr ‘05 Industry Unit Sales Revised Estimate Compared with 1st Qtr ‘04 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			5	%			6	%			(2	)%			(3	)%			12	%
Combine Harvesters			(16	)%			39	%			9	%			(55	)%			28	%
Total Tractors and Combines			5	%			7	%			(1	)%			(16	)%			12	%
Construction Equipment:
Light Construction Equipment:
Tractor Loaders & Backhoes			28	%			23	%			6	%			79	%			42	%
Skid Steer Loaders			6	%			4	%			26	%			4	%			3	%
Other Light Equipment			20	%			50	%			16	%			29	%			12	%
Total Light Equipment			17	%			18	%			16	%			53	%			16	%
Total Heavy Equipment			0	%			20	%			12	%			33	%			(16	)%
Total Light & Heavy Equipment			10	%			19	%			14	%			42	%			(3	)%
2nd Qtr ‘05 Industry Unit Sales Revised Estimate Compared with 2nd Qtr ‘04 Actual
Agricultural Equipment:
Agricultural Tractors:
-  Under 40 horsepower			n/a				(7	)%			n/a				n/a				n/a
-  Over 40 horsepower			n/a				7	%			n/a				n/a				n/a
Total Tractors			4	%			(2	)%			(3	)%			(21	)%			25	%
Combine Harvesters			(9	)%			2	%			9	%			(66	)%			18	%
Total Tractors and Combines			3	%			(2	)%			(2	)%			(27	)%			25	%
Construction Equipment:
Light Construction Equipment:
Tractor Loaders & Backhoes			15	%			5	%			8	%			63	%			28	%
Skid Steer Loaders			3	%			(5	)%			10	%			74	%			39	%
Other Light Equipment			22	%			38	%			14	%			122	%			26	%
Total Light Equipment			15	%			8	%			13	%			69	%			28	%
Total Heavy Equipment			13	%			21	%			(1	)%			44	%			12	%
Total Light & Heavy Equipment			14	%			12	%			9	%			54	%			19	%
3rd Qtr ‘05 Industry Unit Sales Revised Estimate Compared with 3rd Qtr ‘04 Actual
Agricultural Equipment:
Agricultural Tractors:
-  Under 40 horsepower			n/a				(7	)%			n/a				n/a				n/a
-  Over 40 horsepower			n/a				3	%			n/a				n/a				n/a
Total Tractors			10	%			(3	)%			(9	)%			(26	)%			46	%
Combine Harvesters			(12	)%			2	%			4	%			(68	)%			44	%
Total Tractors and Combines			9	%			(3	)%			(8	)%			(31	)%			46	%
Construction Equipment:
Light Construction Equipment:
Tractor Loaders & Backhoes			12	%			11	%			(16	)%			21	%			31	%
Skid Steer Loaders			9	%			9	%			(11	)%			44	%			28	%
Other Light Equipment			15	%			38	%			5	%			58	%			15	%
Total Light Equipment			13	%			18	%			0	%			30	%			20	%
Total Heavy Equipment			13	%			13	%			(1	)%			15	%			19	%
Total Light & Heavy Equipment			13	%			16	%			0	%			21	%			20	%

CNH Global N.V.
Estimates of 2005 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)
4th Qtr ‘05 Industry Unit Sales Revised Estimate Compared with 4th Qtr ‘04 Actual
Agricultural Equipment:
Agricultural Tractors:
-  Under 40 horsepower			n/a				5	%			n/a				n/a				n/a
-  Over 40 horsepower			n/a				(2	)%			n/a				n/a				n/a
Total Tractors			12	%			1	%			(11	)%			(20	)%			60	%
Combine Harvesters			(19	)%			(14	)%			20	%			(45	)%			(12	)%
Total Tractors and Combines			11	%			1	%			(11	)%			(23	)%			58	%
Construction Equipment:
Light Construction Equipment:
Tractor Loaders & Backhoes			10	%			20	%			0	%			41	%			22	%
Skid Steer Loaders			0	%			(1	)%			11	%			6	%			(3	)%
Other Light Equipment			14	%			32	%			0	%			16	%			21	%
Total Light Equipment			9	%			7	%			2	%			28	%			18	%
Total Heavy Equipment			7	%			8	%			(5	)%			0	%			15	%
Total Light & Heavy Equipment			8	%			7	%			0	%			12	%			17	%
Full Year 2005 Industry Unit Sales Revised Estimate Compared with Full Year 2004 Actual
Agricultural Equipment:
Agricultural Tractors:
-  Under 40 horsepower			n/a				(4	)%			n/a				n/a				n/a
-  Over 40 horsepower			n/a				5	%			n/a				n/a				n/a
Total Tractors			8	%			0	%			(6	)%			(19	)%			34	%
Combine Harvesters			(14	)%			1	%			10	%			(58	)%			19	%
Total Tractors and Combines			7	%			0	%			(6	)%			(25	)%			34	%
Construction Equipment:
Light Construction Equipment:
Tractor Loaders & Backhoes			15	%			9	%			(1	)%			47	%			30	%
Skid Steer Loaders			4	%			1	%			8	%			32	%			16	%
Other Light Equipment			18	%			39	%			9	%			45	%			18	%
Total Light Equipment			13	%			12	%			8	%			43	%			20	%
Total Heavy Equipment			8	%			15	%			1	%			21	%			5	%
Total Light & Heavy Equipment			11	%			13	%			6	%			30	%			13	%

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

		Three Months Ended
		March 31,
										%
		2006				2005				Change
		(In Millions)
Revenues:
Net sales
Agricultural equipment		$	1,935			$	1,931				—
Construction equipment			1,015				892				14	%
Total net sales			2,950				2,823				4	%
Financial services			223				187				19	%
Eliminations and other			(12	)			(7	)
Total revenues		$	3,161			$	3,003				5	%
Net sales:
North America		$	1,434			$	1,300				10	%
Western Europe			833				924				(10	%)
Latin America			229				200				15	%
Rest of World			454				399				14	%
Total net sales		$	2,950			$	2,823				4	%

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
		March 31,								March 31,								March 31,
		2006				2005				2006				2005				2006				2005
		(In Millions, except per share data)
Revenues
Net sales		$	2,950			$	2,823			$	2,950			$	2,823			$	—			$	—
Finance and interest income			211				180				40				26				223				187
Total			3,161				3,003				2,990				2,849				223				187
Costs and Expenses
Cost of goods sold			2,462				2,414				2,462				2,414				—				—
Selling, general and administrative			307				290				250				241				57				48
Research and development			84				69				84				69				—				—
Restructuring			4				5				4				5				—				—
Interest expense			139				131				81				84				77				59
Interest compensation to Financial Services			—				—				50				32				—				—
Other, net			97				71				66				50				15				10
Total			3,093				2,980				2,997				2,895				149				117
Income (loss) before income taxes, minority interest and equity in income of unconsolidated subsidiaries and affiliates			68				23				(7	)			(46	)			74				70
Income tax provision (benefit)			30				13				6				(9	)			24				23
Minority interest			7				4				6				4				—				—
Equity in income of unconsolidated subsidiaries and affiliates:
Financial Services			2				2				52				49				2				2
Equipment Operations			10				7				10				7				—				—
Net income		$	43			$	15			$	43			$	15			$	52			$	49
Weighted average shares outstanding:
Basic			145.1				133.9
Diluted			235.5				234.2
Basic and diluted earnings per share (“EPS”):
Basic:
EPS before restructuring, net of tax		$	0.32			$	0.08
EPS		$	0.30			$	0.06
Diluted:
EPS before restructuring, net of tax		$	0.20			$	0.08
EPS		$	0.18			$	0.06
Dividends per share		$	—			$	—

See Notes to Condensed Financial Statements.

 

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

										EQUIPMENT								FINANCIAL
		CONSOLIDATED								OPERATIONS								SERVICES
		March 31,				December 31,				March 31,				December 31,				March 31,				December 31,
		2006				2005				2006				2005				2006				2005
		(In Millions)
Assets
Cash and cash equivalents		$	1,194			$	1,245			$	827			$	858			$	367			$	387
Deposits in Fiat affiliates cash management pools			560				580				557				578				3				2
Accounts, notes receivable and other — net			6,171				5,841				1,295				1,243				4,910				4,670
Intersegment notes receivable			—				—				1,199				1,067				—				—
Inventories			2,665				2,466				2,665				2,466				—				—
Property, plant and equipment — net			1,305				1,311				1,297				1,303				8				8
Equipment on operating leases — net			185				180				—				—				185				180
Investment in Financial Services			—				—				1,650				1,587				—				—
Investments in unconsolidated affiliates			452				449				367				353				85				96
Goodwill and intangibles			3,153				3,163				3,008				3,018				145				145
Other assets			2,065				2,083				1,477				1,486				588				597
Total Assets		$	17,750			$	17,318			$	14,342			$	13,959			$	6,291			$	6,085
Liabilities and Equity
Short-term debt		$	1,412			$	1,522			$	679			$	826			$	733			$	696
Intersegment short-term debt			—				—				—				—				1,199				1,067
Accounts payable			1,779				1,609				1,756				1,641				45				32
Long-term debt			4,943				4,765				2,525				2,396				2,418				2,369
Intersegment long-term debt			—				—				—				—				—				—
Accrued and other liabilities			4,469				4,370				4,235				4,044				246				334
Total Liabilities			12,603				12,266				9,195				8,907				4,641				4,498
Equity			5,147				5,052				5,147				5,052				1,650				1,587
Total Liabilities and Equity		$	17,750			$	17,318			$	14,342			$	13,959			$	6,291			$	6,085
Total debt less cash and cash equivalents, deposits in Fiat affiliates cash management pools and intersegment notes receivables (“Net Debt”)		$	4,601			$	4,462			$	621			$	719			$	3,980			$	3,743

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
		Three Months ended								Three Months ended								Three Months ended
		March 31,								March 31,								March 31,
		2006				2005				2006				2005				2006				2005
		(In Millions)
Operating Activities:
Net income		$	43			$	15			$	43			$	15			$	52			$	49
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization			74				74				63				61				11				13
Intersegment activity			—				—				(70	)			(55	)			70				55
Changes in operating assets and liabilities			(281	)			(567	)			67				(246	)			(348	)			(321	)
Other, net			56				17				19				(32	)			(15	)			—
Net cash from operating activities			(108	)			(461	)			122				(257	)			(230	)			(204	)
Investing Activities:
Expenditures for property, plant and equipment			(25	)			(17	)			(24	)			(17	)			(1	)			—
Expenditures for equipment on operating leases			(28	)			(12	)			—				—				(28	)			(12	)
Net (additions) collections from retail receivables and related securitizations			102				526				—				—				102				526
Net (deposits in) withdrawals from Fiat affiliates cash management pools			16				(114	)			17				(117	)			(1	)			3
Other, net			50				23				37				(8	)			13				31
Net cash from investing activities			115				406				30				(142	)			85				548
Financing Activities:
Intersegment activity			—				—				(132	)			47				132				(47	)
Net increase (decrease) in indebtedness			(66	)			(134	)			(42	)			86				(24	)			(220	)
Dividends paid			—				—				—				—				—				—
Other, net			(9	)			—				(9	)			—				—				—
Net cash from financing activities			(75	)			(134	)			(183	)			133				108				(267	)
Other, net			17				(10	)			—				(2	)			17				(8	)
Increase (decrease) in cash and cash equivalents			(51	)			(199	)			(31	)			(268	)			(20	)			69
Cash and cash equivalents, beginning of period			1,245				931				858				637				387				294
Cash and cash equivalents, end of period		$	1,194			$	732			$	827			$	369			$	367			$	363

     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, 2005 included in the Company’s Annual Report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 31, 2006 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 approximately 90% of CNH’s outstanding common shares.
		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 combination of CNH’s financial services businesses.
		Reclassifications
		Certain 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 described more fully in “Note 18: Option and Incentive Plans”, to our 2005 Form 20-F. In January 2006, CNH adopted Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards (“SFAS”) No. 123 Revised, “Share Based Payment” (“SFAS No. 123 Revised”). SFAS No. 123 Revised requires the use of a fair value based method of accounting for stock-based employee compensation. The statement has been applied using a Modified Prospective Method, under which compensation cost is recognized beginning on the effective date and continuing until participants are fully vested. Adopting SFAS No. 123 Revised did not have a material impact on the Company’s financial statements.

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 months ended March 31, 2005:

		Amount
		(in Millions, except per share
		data)
Net income, as reported		$	15
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	)
Pro forma net income			14
Earnings allocated to Series A Preferred Stock			(7	)
Pro forma net income available to common shareholders		$	7
Weighted average shares:
Basic			133.9
Diluted			234.2
Earnings per share (“EPS”):
As reported:
Basic		$	0.06
Diluted		$	0.06
Pro forma:
Basic		$	0.06
Diluted		$	0.06

3.		Accounts and Notes Receivable — In CNH’s receivable asset securitization programs, retail finance receivables are sold to limited purpose, bankruptcy remote, consolidated subsidiaries of CNH. In turn, these subsidiaries establish separate trusts to which they transfer the receivables in exchange for the proceeds from asset-backed securities sold by the trusts. Due to the nature of the assets held by the trusts and the limited nature of each trust’s activities, they are each classified as a qualifying special purpose entity (“QSPE”) under SFAS No. 140, “Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities” (“SFAS No. 140”). In accordance with SFAS No. 140, assets and liabilities of the QSPEs are not consolidated in the Company’s consolidated balance sheets. The amounts outstanding under these programs were $4.9 billion and $4.7 billion at March 31, 2006 and December 31, 2005, respectively. In addition to the retail securitization programs, certain subsidiaries of CNH securitized or discounted wholesale receivables without recourse. As of March 31, 2006 and December 31, 2005, $3.1 billion remained outstanding under these programs. Included in the securitized or discounted wholesale receivables without recourse amount noted above is a wholesale securitization program in Europe under which Equipment Operations entities sell receivables while a Financial Services subsidiary subscribes to notes representing undivided retained interests. At March 31, 2006 and December 31, 2005, the amounts outstanding under this program were $688 million and $709 million, respectively and Financial Services had an undivided retained interest of $215 million and $251 million, respectively.
4.		Inventories — Inventories as of March 31, 2006 and December 31, 2005 consist of the following:

		March 31,				December 31,
		2006				2005
		(in Millions)
Raw materials		$	547			$	494
Work-in-process			243				195
Finished goods and parts			1,875				1,777
Total Inventories		$	2,665			$	2,466

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

5.

Goodwill and Intangibles — The following table sets forth changes in goodwill and intangibles for the three months ended March 31, 2006:

										Foreign
		Balance at								Currency				Balance at
		January 1,								Translation				March 31,
		2006				Amortization				and Other				2006
		(in Millions)
Goodwill		$	2,388			$	—			$	2			$	2,390
Intangibles			775				(12	)			—				763
Total Goodwill and Intangibles		$	3,163			$	(12	)		$	2			$	3,153

As of March 31, 2006 and December 31, 2005, the Company’s intangible assets and related accumulated amortization consisted of the following:

						March 31, 2006												December 31, 2005
		Weighted
		Average								Accumulated												Accumulated
		Life				Gross				Amortization				Net				Gross				Amortization				Net
						(in Millions)
Intangible assets
subject to amortization:
Engineering drawings			20			$	335			$	107			$	228			$	335			$	103			$	232
Dealer Network			25				216				55				161				216				53				163
Software			5				50				40				10				50				37				13
Other			10-30				116				51				65				116				48				68
							717				253				464				717				241				476
Intangible assets
not subject to amortization:
Trademarks							273				—				273				273				—				273
Pension							26				—				26				26				—				26
						$	1,016			$	253			$	763			$	1,016			$	241			$	775