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This is part of the ItalianCar.net archive - go to ItalianCar.net now NEWS ARCHIVE Fiat Auto ends four years of losses
Fiat Auto recently posted its first positive quarterly trading profit (€21 million) after 17 successive quarters of losses. The group closed the year with €1.4 billion of net income and net industrial debt at €3.2 billion. The following is an excerpt from the Fiat Auto press release: o On revenues up 2% on the prior year, consolidated Group
trading profit reached €1 billion compared to €50 million in
2004
Fiat Auto (Fiat, Alfa Romeo, Lancia and LCV's) had revenues of € 19.5 billion, reflecting a slight decrease (-0.8%) from 2004 due to lower volumes, partially offset by a better mix and positive exchange rate impacts. Fiat Auto reported contrasting performances in 2005. Sales in the first half of the year were impacted by intense competitive pressure, the Group's focus on more profitable sales channels, and especially slower sales of older models ahead of new product launches. The market launch of the Croma (May), Grande Punto and Alfa 159 (September) reversed the trend. Volumes, which had declined by 8.4% in the first half and by 5.9% in Q3, rose by 7.6% in Q4 (+14.7% in Italy alone). These launches, aided by the introduction of the Alfa Brera, Panda Cross, and Lancia Ypsilon Momo Design models in Q4 started a solid reversal of the sales decline and positioned the business for healthy volumes in 2006, with Italian market share targeted at around 30% for the year. In Western Europe, demand remained largely unchanged from 2004 (-0.2%). Automobile demand declined in Italy (- 1.3%) and contracted sharply in Poland, where car registrations fell by 26.5%, but continued strong in Brazil (+9.1%). Fiat Auto delivered a total of 1,697,000 units in 2005, 3.9% less than in 2004. A total of 1,100,000 units were delivered in Western Europe (-7.8%); the decline in Italy recorded for the year (-2.4%) leveled off sharply in Q4. In Italy, Fiat Auto's share of the automobile market stood at 28%, virtually unchanged from 2004, while its share of the Western European market dropped by 0.7 percentage points to 6.5%. Outside Western Europe, the dismal performance of the Polish market led to a 44.3% reduction in sales in that country. In Brazil, Fiat Auto sales rose by 12.9%, yielding market shares of 24.4% in passenger cars and 28.8% in light commercial vehicles. The commercial vehicles market grew by 2.8% in Western Europe but contracted by 1.8% in Italy. In 2005, Fiat held more than 10% of the European commercial vehicles market and over 40% in Italy alone, substantially unchanged from 2004 levels. Fiat Auto had a trading loss of € 281 million in 2005, a sharp improvement from the loss of € 822 million of 2004. This change was mainly attributable to an improved product mix due to the new models, a reduction in product cost due to purchasing efficiencies, a strong focus on more profitable sales channels and a drastic reduction in governance costs. Fiat Auto had revenues of € 5.6 billion in Q4 2005, a 3% increase over the prior year. The quarter's trading profit of € 21 million reflects an improvement of € 177 million over Q4 2004. The 7.6% increase in deliveries from Q4 2004 reflects the positive impact of new model launches, with unit sales improving 8.2% in Western Europe. Growth was reported in every European country, with the exception of the U.K. In Italy, deliveries increased by 14.7%. In Q4, Fiat Auto's market share was 29.1% in Italy and 6.8% in Western Europe. Maserati had revenues of € 533 million in 2005. The 30.3% improvement from 2004 was due to the success of the Quattroporte and the special MC12 street version. Strong increases were recorded in Q2 and Q3, with results contracting in Q4. A total of 5,568 units were delivered, up 17% from the previous year. The trading loss of Maserati was € 85 million, as compared to a loss of € 168 million in 2004, which included € 46 million in fixed asset write-downs posted in Q4 2004. Higher sales volumes and a better product mix accounted for the further reduction in the Sector's trading loss. 6 Maserati revenues totaled € 123 million in Q4 2005, a 20.6% drop from Q4 2004. Trading loss was € 22 million, down from a loss (pre-write-down) of € 51 million in 2004. Ferrari posted revenues of € 1,289 million in 2005. The 9.7% increase from 2004 was largely attributable to the success of the F430 and 612 Scaglietti models. Revenues were also boosted by sales of the Superamerica and the FXX limited edition. A total of 5,399 units were delivered to the dealer network during the year, up 11% from 2004. In 2005, Ferrari had a trading profit of € 157 million, up from a profit of € 138 million in 2004, notwithstanding a weak US dollar. The improvement reflected higher sales volumes and efficiency gains, which were partially offset by the negative impact of exchange rates. Ferrari had revenues of € 382 million in Q4 2005, up 16.5% from Q4 2004, due to a 17% rise in deliveries. Trading profit totaled € 83 million, against € 91 million in Q4 2004 mainly due to less favorable product mix and higher R&D expenses. Fiat Powertrain Technologies is the new Sector
which groups all passenger car engine and transmission activities. Fiat
regained control over these activities in May 2005 following termination
of the Master Agreement with General Motors. Starting in 2006, the Sector
will also include the engine and transmission operations of Iveco, Centro
Ricerche Fiat and Elasis. This Sector had revenues of € 1,966 million
between May and December 2005. The majority of the Sector's sales were
allocated to Fiat Auto, while sales to third parties were roughly 23%
of Sector turnover. Fiat Powertrain Technologies achieved a trading profit
of € 26 million. © italiancar.com.au 09/02/06
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