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CNH Global N.V. Company News Alert Significant decline in NYSE common stock price NYSE Common Stock BUY

30 June 2008

Ticker: Target price: Current price: Price change since last report:

CNH US$51.44 US$33.89 (20.2%)

CNH Global N.V.’s (CNH) NYSE common stock price has depreciated significantly since our previous update report, which we believe is primarily due to the implementation of a 5.0% surcharge on the base price of the company’s products in order to offset rising material cost and transportation costs. The decline in the NYSE common stock can also be attributable to weak equity market over the last week. In view of recent increases in raw material costs such as steel, energy and commodities, we expect that margins will be under pressure in the medium term. However, we believe that the company will continue to benefit from increased farm income in FY 2008 and increased spending in agricultural activity will fuel demand for agricultural equipment. In view of this we maintain our medium-term outlook for the company and do not anticipate a change in our current rating for the NYSE common stock. We continue to take a 6-12 month investment horizon for this stock as the market in which CNH operates is highly cyclical and therefore trends can be captured more accurately with a shorter investment horizon We will reassess the NYSE common stock rating after the company announces its 2Q 08 results on 23 July 2008. Our fundamental outlook remains strong and we continue to anticipate a significant currency impact on the European stock over the medium term. Hence, we do not anticipate a change in our current European stock rating.

European Stock1
Ticker: Target price: Current price: Price change since last report:

CNH.F €30.32 €21.40 (21.9%)

We will reassess the European stock rating after the company announces its 2Q 08 results on 23 July 2008.

Supervisor: Nirav Shah Analyst: Anuj Upadhyay Editor: Shem Pennant Global Research Director: Satish Betadpur, CFA Next news due: 2Q 08 results, 23 July 2008

Investment horizon - short term actionable trading strategies
This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If this report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for readers with a shorter trading horizon. These are available on-line only at

In our 1Q 08 update report, dated 05 June 2008, we upgraded the CNH NYSE common stock from a HOLD to a BUY, with a target price of US$51.44 and a potential upside of 21.0%. The CNH NYSE common stock has depreciated by 20.2% since. We believe that the decline in the company’s stock price is partly attributable to weak equity markets and the decision to raise prices for its products. On 23 June 2008, CNH announced that it will levy a 5.0% surcharge on a range of its products due to rising steel, energy, other commodity prices and higher transportation costs. We believe, while the increase in prices will offset some margin decline for the company on account of higher raw material costs, any decline in demand due to such surcharge may lead to poor financial performance. We continue to expect that increased farm income in 2008 would lead to increased spending on agricultural activity and increase demand for agricultural equipment. Furthermore CNH’s new product launches will enable the company to benefit from ongoing growth opportunities in the agricultural market. The rising price of agricultural commodities is leading to an expansion of output, which will drive demand for agricultural equipment, going forward. In view of this, we believe that it is highly unlikely that demand will taper off during the current year and we maintain our positive outlook for the company.

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