As Iveco revealed record quarterly vehicle sales and revenues up by more than a quarter during the announcement of Fiat Group's second quarter financial results yesterday, Fiat CEO Sergio Marchionne told investors in an afternoon conference call that the bus-and-truck maker's plans to enter the United States market should be tied up in the 'next six to nine months'.

Marchionne reconfirmed Fiat's ambitious plans for Iveco to penetrate the US market told investors that "we have to be cautious how we do this." He said that Fiat had looked at a range of options on how to fulfil this plan, including setting up their own operation to to transfer technology with a partner. It is widely believed that Fiat has been discussing such a plan with Illinois-based Navistar International. However he said "It is too early to call," but offered hope that the plans are progressing by adding: "We will have something done in the next six to nine months."

Iveco - Second Quarter

In Q2 2007 Iveco had revenues of €2.9 billion (+25.2%) as a result of higher sales volumes and improved pricing. In Q2 Iveco delivered a total of 56,600 vehicles, the highest level in its history, (including 3,700 with buy-back commitments), up 19.1% over Q2 2006. A total of 41,100 units (+12.4%) were delivered in Western Europe, with sharp improvements in Germany (+24.2%), Spain (+16.5%), France (+9.2%) and Italy (+6.8%). In the rest of the world, deliveries increased significantly in Eastern Europe (+67%) and Latin America (+45%). Western European demand for commercial vehicles (curb weight ≥ 2.8 tons) recorded an overall increase of 6.4% over Q2 2006. Demand rose for light vehicles (+14.4%), while it decreased in the medium (-14.4%) and heavy (-10.3%) vehicles segments which were negatively influenced by the high number of pre-registrations recorded in April 2006, before the introduction of the digital tachograph and the new emission rules for these vehicles.

Iveco’s share of the Western European market (10.5%) declined slightly over Q2 2006 (-0.4 percentage points) due to a drop in the light vehicle segment (-0.5 percentage points). 

While both medium and heavy segments posted increases, of 2.0 and of 0.4 percentage points, respectively. Market share improved, however, when compared to Q1 2007 thereby confirming this year’s growth trend. Iveco’s trading profit totalled €224 million (7.8% of revenues), a sharp improvement (+€61 million) from Q2 2006 trading profit. The increase was mainly attributable to the strong growth in sales volumes and better pricing resulting from the improvement in the competitive repositioning of its products, especially heavy vehicles.

In April Iveco presented the new Trakker, an off-road dump truck and construction vehicle, with two new cabin models. At the same time Iveco also launched the latest version of the Daily CNG, a natural gas powered vehicle. In buses, the Citelis – an urban bus with low environmental impact – rolled out of the Iveco Irisbus plant in Valle Ufita. In addition, one year after its official launch, the new Daily is continuing to receive prizes and awards throughout Europe. In Spain it received the “Light truck of the year” award, and in Great Britain it was named “Best Light Truck 2007”.

Iveco - First Half

In H1 2007 Iveco had revenues of €5.3 billion, a 22.7 increase from H1 2006. A total of 104,500 vehicles were delivered in H1 2007 (including 6,900 with buy back commitments), for an increase of 16.8% over H1 2006. In Western Europe deliveries totalled 76,800 units (+11.2%) and its market share was 10.4%. The slight decline from H1 2006 (-0.2 percentage points) is due to a decrease in the light vehicle segment (-0.1 percentage points) that was not completely offset by the good results achieved in the medium and heavy segments (+0.8 and +0.4 percentage points, respectively). Iveco’s trading profit in H1 totalled €374 million (7% of revenues), up 60.5% or €141 million from H1 2006.