CNH SETS BUSINESS TARGETS FOR 2014
For more information please contact:
Communications (630) 887-2345
- FY 2014 Revenue target of $19.8 Bn
- FY 2014 Mid-Range Trading profit margin 10.5%
BURR RIDGE, ILL. - CNH Global N.V. (NYSE: CNH - News) April 21, 2010: CNH released to the public today in Torino, Italy, its 5-year strategic plan. The plan, which is available in full at the CNH website www.cnh.com, was developed as part of a post 2009 re-basing exercise of the Company's strategic position of its product portfolio, geographic footprint of its industrial base, dealer network, and market growth assumptions. The plan relies on four main pillars for performance improvement, all of which equally contribute to maximizing, in many cases, the leadership position of the CNH product portfolio in its targeted end markets and operating geographies.
Continuous improvement in product quality and best in class features development have been the core drivers of the success of the CNH brands as our customers have relied on the Company's ability to deliver products with value enhancing performance characteristics. A critical part of the assumptions embedded in the 5-year plan includes a commitment to our customers to fund future product development, our pledge to invest and co-invest with our industrial partners in emerging markets with customized products, and our promise to our dealership network to provide a full range of high performance products for their end user customers. All of these initiatives will be financed by the Company's commitment to world class manufacturing systems, platform rationalization programs, and the combined efficiencies of being part of one of the world's largest industrial groups.
"CNH has demonstrated that it has the institutional knowledge to build products to meet the demands of our customers in their chosen markets. This new strategic growth plan is, in many ways, an extension of that commitment to our customers and partners through the provision of a 5-year roadmap of performance objectives and strategic intent" said Harold Boyanovsky, CNH President and CEO.
2010-2014 Financial targets (IFRS basis, FX at 2010 rate assumptions)
CNH Global N.V. is a world leader in the agricultural and construction equipment businesses. Supported by more than 11,600 dealers in approximately 170 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.
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, operating results, 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 the availability of credit and to interest rates and government spending. Some of the other significant factors which may affect our results 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 customers' access to credit, restrictive covenants in our debt agreements, actions by rating agencies concerning the ratings of our debt securities and asset backed securities, 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 by competitors, disruptions in production capacity, excess inventory levels, the effect of changes in laws and regulations (including those related to tax, healthcare, retiree benefits, government subsidies and international trade), the results of legal proceedings, 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 and critical suppliers, 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 margin 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 annual report on Form 20-F for the year ended December 31, 2009.
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.