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UK rugby stars
Nick Evans, Will Skinner and Chris Robshaw
jumped behind the wheel of the Alfa
Giulietta today for a high-speed challenge
ahead of their landmark match in Abu Dhabi,
this weekend (Sunday 30 January). The game
against London rivals, Wasps, on Sunday is
the first competitive UK domestic rugby
fixture to be played overseas. In between
preparations for the big game, Evans,
Skinner and Club Captain, Robshaw, were
invited by Alfa Romeo - who are the clubs
Official Vehicle Supplier to stretch their
legs by grabbing the wheel of the 235 bhp
range-topping Alfa Giulietta Cloverleaf, at
the world famous Brands Hatch motor racing
circuit in Kent. The players were assessed
across a variety of disciplines including
the ability to drive to instruction,
changing gear, taking the racing line, use
of power and braking technique. |
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For the full year of 2010 a
net profit of 600 million euros has been reported today
by the Fiat Group which compares well to loss of 848
million euros for the full year of 2009, which, when
split up up, works out as 222 million euros from Fiat
and 378 million euros for Fiat Industrial. Today the
Fiat Group announced is fourth quarter and full year
results, the key highlights were:
Revenues of 56.3 billion were up 12.3% over 2009.
Trading
profit doubled to 2.2 billion (1.1 billion for 2009)
with trading margin at 3.9% (2.1% for 2009) and all
businesses contributing positively.
Net profit
was 600 million (2009: loss of 848 million), a 1
billion improvement ex-unusual.
Net
industrial debt came in at 2.4 billion (2009: 4.4
billion).
Liquidity
increased to 15.9 billion (2009: 12.4 billion).
The demerger
of the capital goods businesses as Fiat Industrial was
completed successfully in December 2010 and its public
listing began on 3 January 2011.
The Board of
Directors is recommending a total dividend for 2010, for
all 3 classes of Fiat S.p.A. shares, of 152 million
(excluding own shares).
The Group
confirms the financial objectives set out for its
businesses in the 2010-2014 Plan presented in April
2010. In particular, for 2011, Fiat and Fiat Industrial
have set the following targets:
o
Revenues of
approx 37 billion for Fiat and approx 22 billion for
Fiat Industrial
o
Trading
profit 0.9-1.2 billion for Fiat and 1.2-1.4 billion
for Fiat Industrial
o
Net
industrial debt of 1.5-1.8 billion for Fiat and
1.8-2.0 billion for Fiat Industrial
The dividend
policy for 2011, a transition year, is expected to
remain unchanged, with an expected payout of 25% of
consolidated income for each of Fiat and Fiat
Industrial, with a minimum payout from the first of 50
million and 100 million from the second. The respective
Boards will articulate a dividend policy for each of the
two groups for later years within 2011.
The results relate to Fiat Group prior to the
demerger that took legal effect on 1 January 2011. A
breakdown between businesses remaining under Fiat S.p.A.
after the demerger (Fiat Post Demerger or Continuing
Operations) and those transferred to Fiat Industrial
(Fiat Industrial or Discontinued Operations) is also
shown.
Group
revenues were 56.3 billion, up 12.3% over 2009: the
Automobiles and related Components businesses (Fiat Post
Demerger) posted revenues of 35.9 billion (+9.8%
year-on-year), while CNH, Iveco and related Powertrain
activities (Fiat Industrial) recorded revenues of 21.3
billion (+18.8%).
Trading
profit came in at 2.2 billion (1.1 billion for 2009):
Fiat Post Demerger reported a trading profit of 1.1
billion and trading margin at 3.1% (736 million and
2.3% for 2009), with Automobiles contributing 934
million (up 215 million y.o.y); Fiat Industrial posted
a trading profit of 1.1 billion and trading margin at
5.1% (322 million and 1.8% for 2009), with trading
profit for CNH and Iveco more than double.
Net profit
was 600 million (net loss of 848 million for 2009),
222 million of which relates to Fiat Post Demerger and
378 million to Fiat Industrial. Net profit for the
Group reflects 195 million in unusual charges (699
million for 2009).
Net
industrial debt level was reduced significantly to 2.4
billion (year-end 2009: 4.4 billion), principally
reflecting the positive operating performance for all
businesses. The split in net industrial debt between
Fiat Post Demerger and Fiat Industrial, which takes into
account the effects deriving from the demerger which
occurred on 1 January 2011, is 0.5 billion and 1.9
billion, respectively.
Liquidity
strengthened to 15.9 billion (year-end 2009: 12.4
billion): 12.2 billion for Fiat Post Demerger and 3.7
billion for Fiat Industrial.
On the basis
of 2010 net profit, the Board of Directors intends to
recommend a total dividend for all 3 classes of Fiat
S.p.A. shares of 152 million (excluding own shares).
For 2011,
top-line growth for Fiat is expected to be in the range
of 2-3%, with trading profit in the range of 0.9-1.2
billion. For Fiat Industrial, the plan presented to the
financial community in April 2010 is confirmed with 2011
revenues of
∼22
billion and trading profit in the range of 1.2-1.4
billion. Net industrial debt at the end of 2011 is
expected at levels of 1.5-1.8 billion for Fiat and of
1.8- 2.0 billion for Fiat Industrial.
Fiat Post Demerger (Continuing Operations)
Revenues for Fiat Post Demerger
were 35.9 billion, representing a 9.8% year-on-year
increase.
−
Fiat Group
Automobiles (FGA) achieved revenues of 27.9 billion, up
6.0% over 2009 (+0.5% at constant exchange rates), on a
total of 2,081,800 cars and light commercial vehicles
delivered (-3.2% over 2009). Share of the European
passenger car market was down (-1.1 p.p. to 7.5%), with
the phase-out of eco-incentives impacting demand for
both smaller and CNG/LPG vehicles, particularly in Italy
and Germany. Share in Italy declined 2.7 p.p. to 30.1%
for passenger cars, while performance in the LCV segment
was particularly positive (share up ~3 p.p. to 44.0%).
Fiat maintained its leading position in Brazil, with an
overall share of 22.8%.
−
Luxury and
Performance brands reported significant year-on-year
growth: Ferrari posted revenues of 1.9 billion, up 7.9%
over 2009, and Maserati achieved a 30.8% increase to
0.6 billion.
−
Components
and Production Systems had revenues of 10.9 billion, an
increase of 23.6% over 2009.
Full-year
trading profit was 1.1 billion (736 million for 2009).
−
FGA reported
trading profit of 607 million (2009: 470 million),
with a trading margin of 2.2% (2009: 1.8%). The
increase was attributable to an improved product/market
mix with a notable recovery in demand for light
commercial vehicles and a significant contribution from
Brazil in addition to continued improvements from
World Class Manufacturing and purchasing efficiencies.
−
Luxury and
Performance brands benefited from the performance of new
models and optimization of cost structures: Ferrari had
a 303 million trading profit, increasing 65 million
for the year (trading margin of 15.8%), while trading
profit for Maserati more than doubled to 24 million
(trading margin of 4.1%).
−
Components
and Production Systems nearly tripled trading profit to
249 million (trading margin of 2.3%), up 160 million
from 2009, driven primarily by higher volumes and
improved product mix.
Fiat Industrial (Discontinued Operations)
Revenues for Fiat Industrial were
21.3 billion, up 18.8% over 2009.
−
Agricultural
and Construction Equipment (CNH) posted revenues of
11.9 billion, up 17.8% (+12.0% in USD terms), with
improved demand for agricultural equipment driven by
increased global commodity prices and a healthy recovery
in construction equipment demand, particularly in the
Americas and Asia-Pacific markets.
−
Trucks and
Commercial Vehicles (Iveco) reported revenues of 8.3
billion (+15.6%). Total deliveries were up 24.8% to
129,630 units, increasing 52.4% in Latin America, 41.6%
in Eastern Europe and 17.3% in Western Europe, where,
however, volumes remain modest compared to pre-crisis
levels.
−
FPT
Industrial achieved revenues of 2.4 billion, improving
52.8% over 2009.
Trading
profit was up significantly at 1.1 billion (2009: 322
million).
−
CNH recorded
trading profit of 755 million (2009: 337 million),
representing a trading margin of 6.3% (2009: 3.3%), due
to higher sales volumes, increased capacity utilization
in the Americas, and improved product mix and pricing.
−
Iveco posted
a trading profit of 270 million (2009: 105 million),
with a trading margin of 3.3% (2009: 1.5%). The
improvement was primarily driven by higher sales volumes
and production efficiencies.
−
FPT
Industrial posted a 65 million trading profit (trading
margin of 2.7%), a swing of 196 million over 2009
driven by the significant increase in sales volumes
Group results
Fiat Group
revenues for
2010
totaled 56.3
billion, a 12.3% increase over 2009, when overall
trading conditions were particularly weak. Fiat Post
Demerger posted revenues of 35.9 billion (+9.8%). The
Automobiles business recorded 30.1 billion (+6.3%):
increased sales of light commercial vehicles, and by
Ferrari and Maserati, in addition to positive currency
effects, more than offset the decline in passenger cars
for FGA, following the phase-out of eco-incentives in
major European markets. Components & Production Systems
achieved a 23.6% increase in revenues to 10.9 billion
on the back of higher demand. Fiat Industrial recorded
revenues of 21.3 billion, up 18.8% over 2009, with
significant volume recoveries for all businesses.
For the
fourth quarter, the Group
recorded 15.0 billion in
revenues,
up 10.4% year-on-year, driven primarily by CNH (3,023
million, +27.0% over Q4 2009) and Iveco (2,538 million,
+16.9%). Revenues for the Automobiles business (7,779
million) were stable compared with 2009 levels. Fiat
Group posted
2010
trading profit
of 2,204 million (1,058 million
for 2009). Trading profit for Fiat Post Demerger was
1,112 million (trading margin: 3.1%), compared with
736 million for 2009 (trading margin: 2.3%), and Fiat
Industrial reported a trading profit of 1,092 million
(trading margin: 5.1%), up from 322 million for 2009
(trading margin: 1.8%). Overall, the improvements were
driven by higher volumes, with the exception of
passenger cars for FGA, better product mix and continued
focus on costs and industrial efficiencies.
Trading profit
for the
fourth quarter
was
615 million (trading margin: 4.1%), compared with 488
million for the same period in 2009 (trading margin:
3.6%). The improvement was essentially due to the
performance of Fiat Industrial Sectors.
For
2010, Fiat Group recorded
operating profit
of 2,009 million (359 million in 2009), which included
195 million (699 million in 2009) in net unusual
expenses, mainly due to restructuring costs across all
Sectors (176 million), inclusive of related asset
write-offs. Operating profit for Fiat Post Demerger was
992 million (378 million for 2009): the increase
reflects the improvement in trading profit (+376
million) and a reduction in net unusual expense (120
million for 2010 compared with a 358 million charge for
2009). Operating profit for Fiat Industrial was 1,017
million: the increase over the 19 million loss for 2009
was due to improved trading performance (+770 million)
and a reduction in net unusual expense (75 million for
2010 compared with a 341 million charge for 2009).
Net financial expense
for 2010 for
Fiat Group totaled 905 million (753 million for 2009)
with the increase primarily due to the cost of
maintaining a higher level of liquidity. For Fiat Post
Demerger, net financial expense was 400 million (352
million for 2009) and included a 111 million gain in
the mark-to-market value of two stock option-related
equity swaps (a 117 million gain for 2009). For Fiat
Industrial, net financial expense totaled 505 million
(401 million for 2009).
Fiat Group recorded
profit before taxes
of 1,282 million (loss before
taxes of 367 million for 2009), 706 million of which
related to Fiat Post Demerger (profit before taxes of
103 million for 2009) and reflected the higher
operating result (+614 million), as well as an increase
in investment income (+37 million), partially offset by
a 48 million increase in net financial expense. Fiat
Industrial closed 2010 with a profit before taxes of
576 million, compared to a loss before taxes of 470
million for 2009. The increase reflects the higher
operating result (+1,036 million) and an increase in
investment income (+114 million), partially offset by a
104 million increase in net financial expense.
Income taxes
for Fiat Group
totaled 682 million (481 million for 2009) and related
to the taxable income of companies operating outside
Italy and employment-related taxes (IRAP) in Italy.
Income taxes totaled 484 million (448 million for
2009) for Fiat Post Demerger and 198 million (33
million for 2009) for Fiat Industrial.
For 2010, Fiat Group recorded
net
profit
of 600 million (loss of 848 million for 2009), 222
million for Fiat Post Demerger (loss of 345 million for
2009) and 378 million for Fiat Industrial (loss of 503
million for 2009).
Net industrial debt
for Fiat
Group totaled 2.4 billion, a reduction of 2.0 billion
over year-end 2009 driven by strong operating
performance for all businesses and continued disciplined
working capital management. The split in net industrial
debt between Fiat Post Demerger and Fiat Industrial,
which takes into account the effects deriving from the
demerger which occurred on 1 January 2011, is 0.5
billion and 1.9 billion, respectively.
At 31 December 2010, Group
liquidity
was
15.9 billion (12.4 billion at year-end 2009), 12.2
billion of which related to Fiat Post Demerger and 3.7
billion to Fiat Industrial. In January 2011, Fiat
Industrial drew down newly obtained credit facilities to
the extent necessary to repay amounts owed to Fiats
central treasury. Had this taken place at year end,
liquidity would have been 1 billion higher for Fiat
Post Demerger, with Fiat Industrials liquidity and cash
balances unchanged while still having access to an
additional 2 billion of committed undrawn credit
facilities.
Dividends
The Board of Directors, on the
basis of expected income available for distribution by
Fiat S.p.A. and pending formal approval of the Groups
2010 financial statements on 18 February 2011, intends
to propose to Shareholders at the Annual General Meeting
a total dividend, for all 3 classes of Fiat S.p.A.
shares, of 155.1 million (151.6 million excluding own
shares currently held). The proposed distribution by
share class will be as follows:
0.09 per ordinary
share, representing a total distribution of 98.3
million (94.8 million excluding own shares currently
held);
0.31 per preference share, representing a total
distribution of 24.8 million; and,
0.31 per savings
share, representing a total distribution of 32.0
million.
Fiat Group Automobiles
Fiat Group Automobiles (FGA)
posted
revenues
of 27.9 billion
for the year, representing a 6% increase over 2009
(+0.5% at constant exchange rates), with the impact of
the decline in passenger car volumes (-8.2%) compensated
for by the significant increase for light commercial
vehicles (+27%). In total, FGA delivered 2,081,800 cars
and light commercial vehicles, down 3.2% over the prior
year. For passenger cars only, FGA delivered 1,691,400
vehicles, an 8.2% decrease over 2009. In Europe,
deliveries were down 15.1% to 963,000 vehicles with the
reduction also reflecting measures to realign dealer
inventory levels to market demand. Deliveries in Italy
(-16.3%) and Germany (-53.2%) were heavily impacted by
the significant decline in demand for smaller and CNG/LPG
vehicles, following the phase out of eco-incentives.
Deliveries were also down in the United Kingdom
(-17.5%), but remained stable in France (+0.9%) and were
up in Spain (+48.3%), against particularly low 2009
volumes. Notable results were achieved in several of the
Sector's smaller markets including the Netherlands
(+59.3%), Belgium (+40.9%), Portugal (+35.1%) and
Denmark (+78.7%).
Within the first few months of
launch, deliveries for the new Alfa Romeo Giulietta in
Europe reached a total of around 40,000 units, in line
with expectations. For 2010, deliveries also included
some 13,500 Chrysler, Jeepฎ and Dodge vehicles. The
rollout of distribution of these brands through FGAs
European network implemented gradually during the year
is now complete.
The European passenger vehicle
market experienced an overall decrease of 4.9% over 2009
levels to approximately 13.8 million vehicles. Demand in
the first part of the year was still positively
influenced by government incentive programs. However,
beginning in the second quarter, registrations fell off
significantly with a year-on-year decline of
approximately 11% being recorded for the second half. In
Germany, the first European market to completely phase
out these incentives, demand was down 23.4% for the
year. In Italy, the market declined 9.2% for the full
year, with the fall off in demand being particularly
pronounced in the second half (-22.7%). The decrease in
France was more contained (-2.2%), as incentives were
phased out progressively during the year. Modest growth
was experienced in the United Kingdom (+1.8%) and Spain
(+3.1%). In Brazil, demand for passenger cars continued
to increase (+6.9% year-on-year) despite the phase out
of incentives during the first part of the year.
FGAs European market share for
2010 was impacted by the decision to reschedule the
cadence of new product launches to the second half of
2011 in view of the contraction in market demand
envisioned for the second half of 2010 and the first
half of 2011. In Europe, Fiat Group Automobiles closed
2010 with a market share of 7.5% (down 1.1 percentage
points over 2009). In Italy, share was 30.1%, a decrease
of 2.7 percentage points. Excluding the effect of the
sharp reduction in demand for CNG/LPG vehicles (-25%),
where FGA is market leader, share would have been in
line with 2009. At 3.0% (-1.7 percentage points), share
performance in Germany was impacted by the significant
decline in demand (over 40%) in FGA's core market
segments. Modest decreases in share were experienced in
France (-0.3 percentage points to 4.0%) and the United
Kingdom (-0.5 percentage points to 3.0%). By contrast,
market share in Spain was up 0.5 percentage points to
3.0%. With regard to other European markets, notable
performance was achieved in the Netherlands, where FGAs
eco-performing product range benefited from CO2
emissions based incentives, resulting in a 44% increase
in registrations and a 0.8 percentage point gain in
market share to 6.4%.
The Fiat brand's market share
decreased to 6.0% in Europe (-1.0 percentage point over
2009). The Fiat Panda and the Fiat 500 retained the top
two positions in the A segment, with the Fiat 500
achieving a net gain in share of 2.5 percentage points.
In Europe, market share for the Lancia brand was 0.7%
(-0.1 percentage points), while Alfa Romeo, with a 0.8%
share, maintained registration levels, despite a
contraction in the market, due to the positive
contribution of the new Giulietta during the second half
of the year.
For light commercial vehicles,
a total of 390,400 units were delivered, representing a
27.1% year-on-year increase. In Europe, Fiat
Professional increased deliveries 19.7% to 183,300
units, achieving double-digit growth in all major
markets: Italy (+14.5%), France (+21.7%), Germany
(+24.9%), the UK (+66.1%) and Spain (+46.9%). Demand in
the European light commercial vehicle market was up 9.2%
for the year, reflecting a partial recovery over the
extremely low levels experienced in 2009. Increases were
recorded in all major markets: France (+10.7%), Italy
(+6.2%), Germany (+14.0%), the UK (+18.7%) and Spain
(+9.5%). Growth in LCV demand was particularly
significant in Brazil (+29.5% over 2009), driven by the
strong performance of the domestic economy. In Italy,
Fiat Professional achieved a 44.0% market share, gaining
approximately 3 percentage points over 2009. This
increase was primarily attributable to the brands
expanded product offer. The success of the CNG-powered
Fiorino in the first part of the year, the contribution
of the new Dobl๒ (Van of the Year 2011) for the full
year and excellent performance for the Ducato all
underpinned the brand's continued strong competitive
position in Europe, where it recorded a 12.8% share
(stable vs. 2009).
In Brazil, Fiat Group
Automobiles maintained its leadership position,
delivering a total of 761,400 passenger cars and light
commercial vehicles, representing a year-on-year
increase of 1.6%. With the overall market growing 10.6%,
FGA achieved a 22.8% share for the year (-1.7 percentage
points). Of note was the significant success of the
Novo Uno, with some 110,000 units being delivered
since its launch in the second quarter of 2010. For
light commercial vehicles, the Strada was once again the
most sold model in the Brazilian market and, in
December, the Ducato was no. 1 in its segment. In
Argentina, overall market demand was up 28.8% (27% for
passenger cars; 36% for light commercial vehicles) and
FGA increased its share 0.3 percentage points to 10.4%.
A total of 69,100 vehicles were delivered, representing
a 44% increase over 2009.
Fiat Group Automobiles recorded
a 607 million
trading
profit
for 2010 (trading margin of 2.2%), compared to the 470
million figure for 2009 (1.8% margin). The improved
trading performance was attributable to a better
product/market mix, linked to the performance of light
commercial vehicles and the Brazilian business, in
addition to continued improvements from World Class
Manufacturing and purchasing efficiencies.
Fourth quarter revenues
totaled 7.1
billion, down 1.8% over the same period for 2009 (-5.6%
at constant exchange rates). Volume declines were
partially compensated for by the improved sales mix, the
contribution from Chrysler, Jeep and Dodge brand
products.
Trading
profit
was 139 million for the fourth quarter (2% trading
margin), compared with 190 million for the same period
in 2009 (2.6% trading margin), with the decrease
attributable to lower sales volumes.
FGA delivered a total of
513,800 passenger cars and light commercial vehicles for
the fourth quarter, down 7.6% over the same period in
2009. Passenger car deliveries were down 12.6%, while
deliveries of light commercial vehicles were up 17.9%
over the same period for the prior year. In Europe,
deliveries totaled 270,700 units, a 19.3% contraction
over Q4 2009.
The European passenger car
market continued a downward trend (-8.9% over Q4 2009)
and in Italy demand was down 23.8% over the same period
of the prior year, which fully benefited from the
remaining phase of eco-incentives. Fiat Group
Automobiles had a 28.5% share in Italy (-3.0 percentage
points over Q4 2009 and a 6.8% share in Europe (-1.5
percentage points). For Alfa Romeo, 2010 was the year of
the Giulietta, which was premiered at the Geneva Motor
Show. Offering the maximum in technology and
performance, following initial launch, two low
consumption/emissions engines were added to the offer
(one diesel and one gasoline), along with the innovative
Alfa TCT transmission. The Giulietta was awarded 5 stars
for safety by Euro NCAP (scoring 87/100) and the Unione
Italiana Giornalisti dell'Automotive (UIGA) named the
car Auto Europa 2011. The Alfa TCT transmission is
also available in the Alfa MiTo, whose new BlackLine
Collection was presented at the Bologna Motorshow.
In anticipation of the major
new product launches scheduled for 2011, in 2010 Lancia
enriched its existing product line-up with the
presentation of the special series Hard Black Delta,
featuring several style and content enhancements, a
Delta equipped with highly responsive Euro 5 MultiAir
Turbo and Start&Stop as standard, the limited edition
LPG/gasoline Ypsilon ELLE and the elegant Musa 5th
Avenue.
Major product refreshes for
Fiat included the 500 and 500C, equipped with the new 2-
cylinder TwinAir, which offers up to a 30% reduction in
CO2 emissions with equivalent performance. Another major
release was the new MyLife version of the Punto, with
original styling and advanced technology. Other product
launches during the year include the Dobl๒ Natural
Power, the 2011 Model Year Fiat Qubo and the 2011 range
of the Fiat Panda. Also of note was the launch of the
Novo Uno in Brazil. Four versions of this model were
presented in May, since which excellent sales volumes
have been achieved and the vehicle has won a number of
awards, including the prestigious Carro do Ano
2011.Fiat also returned to the North American market in
2010 with the 500, which debuted at the Los Angeles Auto
Show where it was enthusiastically received with 500
vehicles sold in just 2 hours.
In March 2010, the Fiat brand
was recognized by Jato, for the third year running, as
having the lowest average CO2 emissions in Europe at
127.8 g/km per car sold in 2009. The brand was also
recognized as the most ecological in Europe again for
the first half of 2010, with average CO2 emissions per
vehicle sold coming in at just 123.5 g/km. Fiat
Professional was awarded International Van of the Year
2011 for the new Dobl๒ Cargo, it expanded the Fiat
Scudo line-up to include the new 2.0 MultiJet (Euro 5)
and launched the 2011 Model Year Fiorino. For Abarth,
product developments in 2010 included the release of the
Abarth Punto Evo with 165 hp MultiAir and the Abarth
500C, the first convertible released by the brand since
its relaunch. And in competitive racing, Abarth took
first place in the 2010 European Rally Championship.
Production milestones included the 5,000,000th vehicle
produced at the Melfi plant in Italy in May and the
500,000th Fiat 500 built in Tychy, Poland, just 31
months after its commercial launch.
Maserati
For 2010,
Maserati reported 586 million
in revenues,
an increase of 30.8% over 2009, primarily attributable
to excellent sales performance for the new GranCabrio. A
total of 5,675 cars were delivered to the network during
the year, an increase of 26.4%, with positive
performance in the majority of Maserati's 59 national
markets. In the USA, Maserati's no. 1 market, volumes
were up 45% over the prior year. Excellent results were
also achieved in the United Kingdom (+72%) and China
(+128%), which has become Maserati's 4th largest market
after the USA, Italy and the United Kingdom.
For 2010, Maserati had
a
trading profit
of 24 million (trading
margin: 4.1%). The sharp increase over the 11 million
trading profit for 2009 (trading margin: 2.5%) is
attributable to both higher sales volumes and continued
optimization of operating costs. Maserati reported 151
million in
revenues
for
Q4 2010,
up 17.1% over the same period for the prior year.
Trading
profit
was 8 million for the quarter compared with 5 million
for the fourth quarter of 2009.
During the year, the Company
released the new GranTurismo MC Stradale, the fastest,
lightest and most powerful model in the marque's product
range: a top-of-the-line coup้ that embodies Maserati's
vast experience gained on the racetrack. Other models
presented were the limited edition Quattroporte Sport
GTS Awards Edition and the GranTurismo MC Trofeo, for
which Maserati has organized a single-make championship.
Ferrari
For 2010,
Ferrari reported 1,919
million in
revenues,
up 7.9% over 2009, mainly reflecting higher sales
volumes driven by the new 458 Italia and 599 GTO, as
well as the positive contribution from the customization
program. A total of 6,573 cars were delivered to the
network during the year (+5.4% over 2009), an all-time
record which beat the previous record achieved in 2008
in decidedly more favorable market conditions. In
particular, 2010 sales benefited from the full roll-out
of the 458 Italia in all markets and the continued
success of the Ferrari California. Together these two
models accounted for 87% of total deliveries. Sales
performance for the limited edition 599 GTO was also
excellent.
Ferrari closed 2010 with a
trading
profit of 303
million (trading margin: 15.8%), compared to 238
million for 2009 (trading margin: 13.4%). The increase
was attributable to higher sales volumes, excellent
results from the customization program and efficiency
gains. For
Q4 2010,
Ferrari recorded
revenues
of 570 million, up 16.1%
over the same period for the prior year.
Trading
profit
was 111 million, a significant increase over the 62
million trading profit for Q4 2009 attributable to
higher sales volumes, the significant impact of
customization programs and efficiency gains.
During 2010, Ferrari launched
the 599 GTO, the highest performance road car ever
produced by the Maranello-based company. The car is
powered by a 12-cylinder, 6 liter engine and has a
maximum speed of more than 335 kilometers per hour. That
was followed by the 458 Challenge, a model derived from
the 458 Italia that will be the protagonist of Ferrari's
new single-make trophy. Also in the new product line-up
was the Ferrari SA Aperta, a special series of 80
vehicles, for which the order book was filled almost
immediately, the Ferrari California with Start&Stop, and
US and right-hand drive versions of the 458 Italia and
the HY-Kers concept car. The second of these two models
is a GT hybrid (electric plus traditional engine) that
employs eco-performing technology solutions developed on
the F1 circuit, demonstrating the carmaker's ability to
combine eco-performance with pure driving pleasure.
Fiat Powertrain
For 2010,
Fiat
Powertrain
(the Passenger & Commercial
Vehicles business line of the former FPT Powertrain
Technologies Sector) reported 4,211 million in
revenues,
an increase of 24.9% over the previous year. This
includes the effect of full consolidation of Fiat-GM
Powertrain Polska following acquisition of the JV
partner's 50% stake during the year. On a like-for-like
basis, the increase in revenues was 11.1%. Sales to Fiat
Group companies accounted for 87% of revenues (90% on a
comparable scope of operations; 92% for 2009), with the
remainder primarily consisting of diesel engines sold to
external customers. A total of 2,347,000 engines (+2.5%
on a like-for-like basis) and 2,233,000 transmissions
(+1.1%) were sold during the year.
Fiat Powertrain closed 2010
with a
trading profit
of 140 million, compared
to 104 million for 2009. This improvement was primarily
attributable to a more favorable sales mix and increased
purchasing and manufacturing efficiencies. For
Q4
2010, Fiat Powertrain reported
revenues
of 1,091
million, an increase of 19.8% (+5.4% on a like-for-like
basis) over the same period of the prior year. Fiat
Powertrain recorded a
trading
profit
of 41 million, an increase over the 32 million in
trading profit for Q4 2009.
At the 2010 Geneva Motor Show,
Fiat Powertrain presented an absolute first in gasoline
engine technology: the new 85 hp 2-cylinder TwinAir,
which combines the revolutionary MultiAir system with
fluid-dynamic technology for optimized combustion.
Lighter and smaller than a 4-cylinder with the same
performance characteristics, this new engine offers a
significant reduction in CO2 emissions and has received
international recognition, being named "Technobest 2010"
by an international panel of judges. The 1.4 Turbo, the
first engine to be fitted with the MultiAir system, was
also named Best New Engine 2010. The TwinAir debuted
on the Fiat 500 and 500C in September. 2010 also saw the
launch of the new 120 hp 1.4 16v T-Jet CNG/gasoline
engine (Euro 5) on the Natural Power version of the new
Dobl๒. Also in Geneva, Fiat Powertrain presented another
major new development in transmission technology, the
"Alfa TCT" (Twin Clutch Technology) mounted on the Alfa
Romeo MiTo and Giulietta in combination with the
Start&Stop system. This innovative transmission
incorporates 23 patented technologies.
In the area of diesel
technology, the 75 and 95 hp MultiJet II versions of the
1.3 Small Diesel Engine, already available on the Punto
Evo, were developed for application on the Fiorino and
Qubo in combination with the Start&Stop system. In South
America, the 1.0 Fire Low Friction and Flexfuel versions
of the 1.4 Fire Evo2 and the 1.6 & 1.8 E-Torq were
launched during the year.
Magneti Marelli
Magneti Marelli
reported 2010
revenues
of
5,402 million, representing a 19.3% increase over 2009.
For Europe overall, the increase reflected strong
performance for light commercial vehicles and recovery
in the medium-large passenger car segments, which were
particularly hard hit in 2009. In Italy and Poland,
revenues reflected the overall decline for A and
B-segment cars following the elimination of government
eco-incentives. The sector experienced strong
performance in both China and Brazil and a significant
recovery in the NAFTA region, where volume growth was
primarily driven by new product launches.
All business lines recorded an
increase in production volumes. The Lighting business
achieved significant growth linked to the recovery of
its core European markets and volume increases in Asian
markets and the NAFTA region. The Suspension Systems
business also saw a strong recovery, with volume
increases primarily concentrated in Brazil and the USA.
Sales were also up for Electronics Systems in China and
Brazil.
Magneti Marelli reported
trading profit
of 98 million for 2010
compared with 25 million for 2009. The improvement in
trading performance was driven by increased sales
volumes, combined with cost containment actions and
manufacturing efficiencies. For
Q4
2010, Magneti Marelli reported
revenues
of
1,446 million (+13% over Q4 2009).
Trading profit
totaled 29 million, compared with
43 million for Q4 2009. The benefits of increased sales
volumes, cost containment actions and manufacturing
efficiencies were partially offset by supply constraints
for electronic components attributable to an excess in
demand.
New products presented during
the year include components for the new Alfa Romeo
Giulietta, such as the bixenon headlights and LED
taillights, suspensions, exhaust and a new infotainment
system, which incorporates navigator, dual tuner radio
receiver, and CD/MP3 player with Blue&MeTM interface in
a single device. Magneti Marelli collaborated with Fiat
Powertrain on development of the Alfa TCT transmission
and the TwinAir engine control unit. In Brazil, the
Sector produced numerous components for the Novo Uno:
headlights, instrument panels, control units and
exhaust, suspension and shock absorber systems. Also in
Brazil, the Sector began production of new shock
absorbers for the Punto and Siena, as well as for models
of other manufacturers. In addition, Magneti Marelli
produced lighting systems, control unit, instrument
panel and shock absorbers for the US version of the Fiat
500. The sector also developed numerous electronic,
engine and lighting components for major global
automakers, including navigation systems, GDI direct
injection systems, intelligent lighting systems and
devices for advanced telematic services (e.g., e-call).
In addition, production of hydraulic components for the
Freechoice robotized transmission began in China.
Trucks and Commercial Vehicles
Iveco
reported
revenues
of 8.3
billion for the year, up 15.6% over 2009, primarily as a
result of higher sales volumes, which reflect a general
recovery in demand, although remaining at modest levels
in Western Europe. Iveco delivered a total of 129,630
vehicles, an increase of 24.8% over 2009. Growth was
recorded in all segments with light vehicles up 25.3%,
medium up 51.3% and heavy up 27.6%. Total volumes for
2010 were, however, still considerably below pre crisis
levels. In Western Europe, a total of 78,326 vehicles
were delivered (+17.3%), with increases in France
(+22.3%), Germany (+31.9%), Spain (+40.8%) and the UK
(+36.9%), but year-on-year performance for Italy flat
(-0.1%). The trend was positive in Eastern Europe, with
deliveries up 41.6%, and very strong in Latin America,
increasing 52.4%.
In Western Europe, the trucks
and commercial vehicles market ( ≥3.5
tons) grew 6.3% over 2009, with a recovery in demand in
almost all major markets. There were increases for both
light (+9.0%) and heavy vehicles (+3.5%), but a
contraction for the medium segment (-1.5%).
Registrations rose sharply in all major European
markets: Germany (+15.7%), the UK (+9.2%), Spain
(+5.9%), and France (+5.2%), with the exception of Italy
where the market continued to decline (-3.2%). Demand
for trucks and commercial vehicles also increased in
Eastern Europe (+13.5%), with the light and medium
segments still experiencing a modest contraction (-1.9%
and -0.6%, respectively), while the heavy segment, by
contrast, grew 47.0% over 2009.
Ivecos market share in Western
Europe was 13.2% (down 0.4 percentage points vs. 2009).
Share was substantially unchanged in the light segment
(-0.1 percentage points), with negative relative
performance in the UK (-1.4 percentage points)
offsetting increases in Spain and Germany (+1.7 and +1.4
percentage points, respectively). Share in the medium
segment was down 0.4 percentage points, despite
improvements in Spain (+11.6 percentage points), France
(+1.0 percentage point) and Germany (+1.1 percentage
points). Share decreased 0.9 percentage points in the
heavy segment, with negative performances in Spain (-8.1
percentage points) and Germany (-1.3 percentage points)
partially compensated for by an increase in market share
for Italy (+2.1 percentage points).
For 2010, Iveco posted a
trading profit
of 270 million (2009:
105 million). This improvement was primarily driven by
higher sales volumes and production efficiencies.
Iveco's
fourth
quarter revenues
were 2.5 billion, up
16.9% over the same period for 2009.
Trading
profit
was 137 million, compared with 77 million for the
fourth quarter of the prior year.
In April, Iveco presented the
new Astra HHD8, a construction and mining vehicle with
significant payload capacity that can adapt to even the
most impenetrable terrain. In June, Iveco Magirus
presented two new fire-fighting products, the
high-performance Dragon 2 especially designed for
emergency response at airports and a first-of-its-kind
60-meter ladder. Iveco also presented the Eurocargo
hybrid, the mid-range vehicle equipped with parallel
diesel/electric propulsion system and, for mass transit,
the new Citelis bus, with a diesel/electric series
hybrid engine. At the Hannover Motor Show in September,
Iveco presented the EcoStralis, the latest evolution of
this heavy segment vehicle, which has been optimized to
make it the most efficient, eco-performing vehicle in
its class. Also on display were the Iveco Glider, a
concept truck that proposes innovative productivity
solutions for long-haul use, and an EcoDaily equipped
with the integrated Blue&MeTM TomTom infotainment
system. In addition, the first of 10 EcoDaily Electrics
was delivered to a major international freight and
logistics operator. In Brazil, Iveco launched the new
medium segment Vertis, while the first export sales of
the Genlyon (the on-road heavy vehicle produced in China
by the joint venture between Iveco and SAIC) began to
Vietnam.
FPT Industrial
For 2010,
FPT
Industrial
(the Industrial & Marine business line of the former FPT
Powertrain Technologies Sector) reported 2,415 million
in
revenues,
representing an increase of 52.8% over the previous year
driven by a strong increase in volumes. Sales to
external customers and joint ventures accounted for
32.3% (32.6% in 2009). A total of 423,000 engines
(+58.1%) were sold, primarily to Iveco (34%), CNH (23%)
and Sevel (25%), Fiat Group Automobiles JV for light
commercial vehicles. In addition, 66,000 transmissions
(+25.0%) and 139,000 axles (+32.1%) were also delivered.
2010 closed with a
trading profit
of 65 million. The
improvement over the 131 million trading loss reported
for 2009 was principally attributable to a significant
increase in sales volumes. For
Q4
2010, FPT Industrial had
revenues
of
725 million, up 65.1% year-over-year.
Trading profit
was 30 million compared with a
trading profit of 6 million for Q4 2009.
In 2010,
development was completed on the new two-stage
turbocharging Cursor 13 for agricultural applications
(with power output of up to 660 hp), which is equipped
with a new generation Common Rail system, capable of
managing injection pressure up to 2,200 bars, and
Selective Catalytic Reduction (SCR) system for reduction
of nitrogen oxide emissions. Other developments during
the year included the commercial launch of the 176 hp
F1C diesel engine, featuring SCR technology, and the
start of production on the 81129 kW versions of the F1C
diesel, under the supply agreement with Daimler-Fuso.
For marine applications, the latest evolution of the
C90, the 650 hp Pleasure version, was presented at the
Genoa Motor Show in October 2010. Also of note were the
victories chalked up by RED FPT, which won the U.I.M
Marathon World Cup and the Harmsworth Trophy, the oldest
motorboat racing trophy in the world.
Significant Events
Since the beginning of 2010,
several events of major importance for the development
of the Group's businesses and industrial capabilities
marked the beginning of a new chapter in its history. In
April, John Elkann was appointed Chairman of Fiat,
replacing Luca Cordero di Montezemolo and, on the same
date, an Investor Day was held in Turin during which
management presented the 2010-2014 Business Plan to the
financial community. In addition to outlining the
strategic growth plans and financial targets for each of
the sectors within the Group, the Plan also contained a
proposal to separate the trucks and commercial vehicles
and agricultural and construction equipment activities
from the automobiles and related components activities
in order to yield each of these businesses the greatest
potential for growth and strategic dexterity. As a
result, on 1 January 2011, two new groups came into
being: Fiat (automobiles businesses) and Fiat Industrial
(capital goods businesses), each with the strategic and
financial clarity necessary to develop independently and
with greater flexibility and focus on their respective
core businesses. The ordinary, preference and savings
shares of Fiat Industrial were accepted for listing on
the Milan Stock Exchange (Mercato Telematico Azionario)
and regular trading began on 3 January 2011.
An agreement was reached for
the Giambattista Vico plant in Pomigliano d'Arco, where
the future Panda is to be produced. Negotiations led to
the signing of an agreement with the trade unions FIM,
UILM, FISMIC and UGL on new work rules aimed at
improving the efficiency and competitiveness of the
plant. On 23 December 2010, company representatives and
the trade unions FIM, UILM, FISMIC and UGL signed an
agreement for the relaunch of the Mirafiori plant. The
plan calls for the establishment of a joint venture
between Chrysler and Fiat to bring a new platform to
Turin from the United States for production of large
SUVs for the Jeep and Alfa Romeo brands, with production
expected to reach up to a maximum of 280,000 vehicles
per year. The agreement, which was put to a referendum
in January this year, received majority approval from
workers. Also in December, the foundation stone was laid
for FGAs new plant in Pernambuco, Brazil. A total of
BRL 3 billion is to be invested with initial production
capacity to reach 200,000 vehicles per year by 2014.
In January 2011, Fiat increased
its ownership in Chrysler Group LLC from 20% to 25%
following achievement of the first of three Performance
Events (beginning commercial production of the FIRE
engine at Chryslers Dundee, Michigan facility)
stipulated in the alliance agreement. In 2010, Fiat
Group Automobiles and Chrysler Group LLC also took
additional steps towards integration of their
distribution activities in Europe. Starting in April,
FGA commenced commercial activities to support the sale
and service of Chrysler, Jeep and Dodge branded products
in several European markets. In May, the two companies
began reorganization and integration of the Chrysler and
Lancia sales networks. This integration will lead to the
creation of a new network of over 1,000 dealerships
across Europe by 2014 with a new mandate.
During 2010, the Group also
continued with its strategy of targeted alliances,
entering into several new agreements in the automobile
and automobile-related components field, as well as in
capital goods. For the Automobiles business, Fiat and
the Russian company Sollers signed a memorandum of
understanding to establish a global alliance for the
production of passenger cars and SUVs. Fiat Group
Automobiles and Adam Opel GmbH signed an agreement under
which Fiat will supply vehicles based on the same
platform as the Fiat Dobl๒. In China, the joint venture
established by Magneti Marelli and Shanghai Automobile
Gear Works (SAGW) opened a new plant near Shanghai to
produce hydraulic components for around 300,000
transmissions annually. Magneti Marelli also inaugurated
a new plant in Russia for the production of headlights
and taillights for passenger cars. Finally, CNH and
KAMAZ finalized a joint venture agreement for the
production of agricultural and construction equipment in
the Russian Federation. Once fully operational, the
50/50 joint venture CNH-KAMAZ Industry, will have an
annual production capacity of 4,000 units.
International recognition
received during the year included Fiat S.p.A. being
named as a sustainability leader, for the second
consecutive year, with its place being confirmed in the
Dow Jones Sustainability World and Dow Jones
Sustainability Europe indexes. The score assigned to
Fiat by SAM, specialists in sustainability investing,
was 93/100 compared to an average of 70/100 for the pool
of Automobiles sector companies analyzed.
2011 Outlook
Fiat and Fiat Industrial
confirm the 2011-14 Plan and the financial objectives
that were set out in the presentation to the capital
markets in April 2010. The capital expenditures programs
are expected to increase substantially, especially for
Fiat over the abnormally low levels of 2010, with the
resumption of a normalized level of capital commitments
across all sectors. While working on the achievement of
their objectives, Fiat and Fiat Industrial will continue
to implement their strategy of targeted alliances in
order to optimize capital commitments and reduce risks.
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