CNH TO IMPLEMENT SURCHARGE OF FIVE PERCENT
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Company cites extraordinary increases in the price of steel, energy and other commodities
BURR RIDGE, Illinois, - (June 23, 2008) - CNH Global N.V. (NYSE:CNH), a world leader in the agricultural and construction equipment businesses, has announced that, in response to sharp and sustained increases in its costs for steel, energy, commodities, and transportation, it will implement an approximate 5% across the board surcharge on the base price of all whole goods orders, including attachments and options of its Case IH Agriculture, New Holland Agriculture, Steyr, Case Construction, and New Holland Construction products.
The move follows price rises already introduced by many manufacturing companies worldwide.
Steel prices soared 40% to 50% this year and, according to some forecasters, they could rise even higher as raw material costs continue to climb and global demand for steel and other commodities shows little signs of abating.
"CNH will continue to work to lower our operational costs in manufacturing our leading products through the highly productive efforts of our people, the development and use of state of the art technologies, the implementation in all our industrial sites of the World Class Manufacturing production system and the relentless pursuit of excellence," said Harold Boyanovsky, CNH Chief Executive Officer.
"Having implemented aggressive internal steps to manage these cost increases throughout our worldwide operations, we have now announced specific price increases. These increases will be shown separately on the invoices as a surcharge. Our global team has worked and will continue to work hard to improve the company's financial results, and we have the responsibility to take all necessary actions to protect our bottom line and to benefit our employees, customers, dealers, and other stakeholders," Mr. Boyanovsky added.
CNH Global N.V. 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. CNH Global N.V., whose stock is listed at the New York Stock Exchange (NYSE:CNH), is a majority-owned subsidiary of Fiat S.p.A. (FIA.MI). More information about CNH and its Case and New Holland products can be found online at www.cnh.com.