CEO Harold Boyanovsky noted, "We have now experienced almost a full year of significant global economic pressures with inevitable negative consequences for capital equipment markets and industry sales in both construction and agricultural equipment, with corresponding negative impacts on our net sales and operating profit."

Agricultural Equipment net sales reflected weaker market conditions in most regions of the world when compared to record levels in 2008. Yet sales for large horsepower tractors and combines in North America remained strong, increasing 3% in the quarter and 13% in the first half.

CNH expects that global stock levels in stocks to use ratios of corn and wheat are expected to increase slightly in 2009, although expects soybean ratios to decline. Prices of corn, wheat, and soybeans are expected to decline from their peaks, but will remain at attractive levels compared to other past years. US net farm income should remain at historically strong levels, although down from 2008.

Management also noted that tightening credit, has impacted business and performance in the first half of 2009.

CNH noted that it expects 2009 to remain challenging, but remains optimistic about the future prospects for agricultural equipment.

In Wednesday trading, shares fell 54 cents, or 3.4%, to $15.34.

- Colvin