in the First Half of 2004 99th Fiscal Year - FIAT SpA

continuing operations. Thus, on a comparable basis, the
improvement was 7%. A total of 929,800 units were sold in
the first half of the year, up by 7.2% overall compared with the
first half of 2003.
In Western Europe, the Sector sold 641,000 vehicles, up 1.4%
compared with the first half of 2003. Revenues were positively
impacted by sales of models launched in the last part of fiscal
2003 and the beginning of 2004 and by overall market growth.
In the Sector’s principal markets, sales were up in Spain
(+12.4%) and Great Britain (+4.2%), in contrast with decreases
in France (-7.5%) and Germany (-2.2%), due in part to softness
on local markets. Sales in Italy remained at the same level of
the corresponding period last year. In Western Europe, the
Sector’s market share increased by 0.1 percentage points to
7.6%; in Italy, the Sector’s share was 28.4%, up by 0.7
percentage points with respect to the same period of 2003.
Outside Western Europe, sales volumes increased strongly in
Poland (+30%) and Brazil (+16.2%), increasing at a rate higher
than the growth in demand on both markets.
❚ CNH posted revenues of 5,059 million euros in the first half
of 2004, up by 5.4% compared with the first half of 2003,
notwithstanding the negative foreign exchange effect caused
by the strengthening of the euro. On a comparable exchange
basis, the improvement would have been approximately 11%,
7 Operating Performance and Financial Position of the Fiat Group and Fiat S.p.A.
in the First Half of 2004
thanks mainly to the strong sales performance posted
in America and higher prices.
In the agricultural equipment segment, sales volumes
increased significantly during the first half of 2004 on both
the North American market, where volumes expanded faster
than demand, and in the South American market, where they
were in line with the high rate of growth. Sales contracted
in Western Europe due to weak demand, particularly for
combine harvesters, while Sector sales elsewhere in the
world improved, albeit at a rate slower than market trends.
Construction equipment sales posted strong increases in
North America, in line with market performance, which was
especially brilliant in the heavy-range segment, and in Latin
America. On the other hand, they contracted sharply in
Western Europe due to a soft market for light-range
equipment, while heavy-range equipment sales expanded.
❚ Iveco posted revenues of 4,539 million euros in the first half
of 2004, up 8.7% with respect to the 4,175 million euros
posted in the corresponding period of the previous year
reflecting an increase in sales volumes and higher prices.
Overall sales totaled approximately 79,200 units, up 7.2%
with respect to the first six months of 2003. In Western
Europe, Iveco sold approximately 63,200 vehicles, with an
increase of 4.2% with respect to sales in the first half of 2003,
Fiscal 2003 1st half 2004 1st half 2003
Consolidated
Continuing
Operations (in millions of euros) Consolidated Consolidated
Continuing
Operations
47,271 44,498 Net revenues 23,508 24,774 22,163
40,830 38,468 Cost of sales 20,071 21,584 19,243
6,441 6,030 Gross operating result 3,437 3,190 2,920
4,748 4,509 Overhead 2,323 2,599 2,384
1,747 1,724 Research and development 912 916 893
(456) (511) Other operating income (expenses) (342) (42) (186)
(510) (714) Operating result (140) (367) (543)
(156) (79) Result of equity investments (*) 39 (42) 27
347 359 Non-operating income (expenses) (**) (123) 263 279
(319) (434) EBIT (224) (146) (237)
(979) (1,067) Financial income (expenses) (183) (424) (512)
(1,298) (1,501) Result before taxes (407) (570) (749)
650 541 Income taxes 262 167 71
(1,948) (2,042) Net result (669) (737) (820)
– 90 Result of discontinued operations – – 78
(1,948) (1,952) Net result before minority interest (669) (737) (742)
(1,900) N. A. Group interest in net result (658) (708) N. A.
(*) This item includes investment income as well as writedowns and upward adjustments in equity investments valued using the equity method.
(**) The 2003 figures for continuing operations include net gains on the disposal of discontinued operations, amounting to 487 million euros for the first half of 2003 and to 1,742 million
euros for the entire 2003 fiscal year.