CNH announces results for 2009

CNH announced 2009 financial results. Net Sales declined 26% to $12,783 million for the full year as the industry faced a global slowdown. In the face of this decline, the Company put in place tight cost controls which delivered an Operating Profit of $373 million from Equipment Operations for the full year, which was down 75% from the same period in 2008.
CNH drove down costs in 2009, including an 18% reduction in SG&A expenses for Equipment Operations. The company reduced its overall work force by 13% and cut other operating costs.
Equipment Operations generated $1.1 billion in cash from operating activities over the year. CNH exceeded its working capital reduction target for the full year, delivering $1.2 billion in cash flows through strict management of working capital, centered around a $1.4 billion reduction of inventory. CNH Equipment Operations improved its net cash position by $953 million, ending the year with a net cash position of $530 million, compared to a net debt position of $423 million at the same time a year earlier. "In the face of the global economic slowdown, we set a clear target focusing on cash flow. We put in place clear action plans, and today's results clearly demonstrate disciplined execution of those plans," said Harold Boyanovsky, CNH President and CEO.
CNH Capital demonstrated that, even in the current environment, it has the ability to fund its operations, and do so on terms which allow it to be competitive in the wholesale and retail financing markets.