CNH Global N.V., Burr Ridge, Ill.,announced second-quarter net sales increased 10.7 percent to $3.9 billion as positive performance in the Americas and rest of the world markets more than offset difficult economic conditions in Western and Eastern Europe. Equipment Operations posted an operating profit of $330 million as a result of higher volumes, better pricing and reduced industrial costs. Operating profit improved $169 million at a margin of 8.4 percent.

The net sales split by segment was 80 percent agricultural equipment and 20 percent construction equipment, largely in line with the comparable period of 2009. The geographical distribution of revenue for the period was 42 percent North America, 24 percent Western Europe, 17 percent Latin America, and 17 percent rest of the world. The group's ability to access the global agricultural and construction equipment markets through its dispersed manufacturing and dealership networks, the company said, allowed CNH to increase revenues.

Equipment Operations generated $1.3 billion in cash flow from operating activities in the first half. This was used to finance capital expenditures of $90 million with the balance reducing group indebtedness. During the quarter, CNH Equipment Operations completed a new refinancing transaction through the issuance of $1.5 billion in notes with a maturity of 2017, improving the group's debt duration profile. The proceeds will be used to retire the group's existing $500 million in notes due 2014 and to pay down certain inter-company debt by the end of 2010. CNH Equipment Operations ended the period with a net cash position of $1.8 billion, an increase of $2.1 billion from the comparable period in 2009.

CNH anticipates that global agricultural equipment markets will be flat in 2010. The CNH outlook for the global construction equipment markets is for an increase of 25 to 30 percent in 2010.