2006 Annual Report - Fiat SpA

More documents

Recommendations

Info

60 Relazione sulla gestione Fiat Auto Operating Performance by Sector of Activity Agricultural Trucks and and Construction Commercial Components and Other Businesses Automobiles Equipment Vehicles Production Systems Services Publishing and Communications Report on Operations 61
Fiat Auto – Fiat, Alfa Romeo, Lancia and Fiat Light Commercial Vehicles Operating Performance In 2006, the Western European automobile market expanded slightly (+0.7%) from 2005. Demand rose 3.7% in Italy and 3.8% in Germany, while it contracted in the other principal countries: France by -3.3%, Great Britain by -3.9%, and Spain by -2%. Outside Western Europe, demand expanded slightly in Poland (+1.5%). In contrast, the Brazilian market expanded significantly, at a rate of 13.1%. The commercial vehicle market performed well in Western Europe (+5.6%) as compared with the previous year. Demand rose by about 8% in Italy, over 10% in Germany, 4.8% in France, and 5.9% in Spain, while remaining stable in Great Britain. In 2006, the Sector performed very well in terms of market share. In Italy, its share of the automobile market rose to 30.7%, or 2.7 percentage points higher than in 2005. In Western Europe, its share reached 7.6%, up 1.1 percentage points from 2005. Fiat Auto’s share of the commercial vehicle market in Italy was 47.1%, with an improvement of 4.7 percentage points. In Western Europe, its share rose by 0.7 percentage points to 11%. In Brazil, the Sector’s share of the automobile and commercial vehicle markets in 2006 reached 25.3% (for an increase of 0.9 percentage points) and 26.1% (-2.7 percentage points), respectively. In 2006, Fiat Auto delivered a total of 1,980,300 units, for an increase of 16.7% from 2005. In Western Europe, 1,289,600 units were delivered, for an increase of 17.2%. Automobile Market (in thousands of units) 2006 2005 % change - France 2,000.5 2,067.8 -3.3 - Germany 3,468.0 3,342.1 3.8 - Great Britain 2,344.9 2,439.7 -3.9 - Italy 2,321.1 2,237.4 3.7 - Spain 1,499.0 1,528.9 -2.0 Western Europe 14,624.2 14,529.8 0.7 Poland 239.0 235.5 1.5 Brazil 1,599.9 1,414.8 13.1 62 Report on Operations Fiat Auto Highlights (in millions of euros) 2006 2005 Net revenues 23,702 19,533 Trading profit 291 (281) Operating result (*) 727 (818) Investments in tangible and intangible assets 2,163 1,582 - of which capitalised R&D costs 434 310 Total R&D expenses (**) 675 665 Automobiles and light commercial vehicles delivered (number) 1,980,300 1,697,300 Employees at year-end (number) 44,691 46,099 (*) Including restructuring costs and unusual income (expenses). (**) Including R&D capitalised and charged to operations. The positive sales performance during the year stemmed from the growing success of new models that had been introduced previously, first and foremost the Grande Punto and Panda, as well as the other models that were introduced during the year to enrich the product line of the three brands. Deliveries increased sharply in almost all of the principal European countries, with growth rates far outpacing the market, as in Italy (+17.5% from 2005 deliveries) and Germany (+21.3%), or realised in contracting markets, such as Great Britain, where deliveries rose by 42.8%, and France (+10.9%). Spain represented an exception, where a marginal slip in deliveries (-1.0%) reflected weak demand. Sales Performance Automobiles and Light Commercial Vehicles (in thousands of units) 2006 2005 % change - France 88.0 79.3 10.9 - Germany 110.1 90.8 21.3 - Great Britain 76.1 53.3 42.8 - Italy 808.2 687.7 17.5 - Spain 69.6 70.3 -1.0 - Rest of Western Europe 137.6 118.5 16.0 Western Europe 1,289.6 1,099.9 17.2 Poland 33.0 33.8 -2.3 Brazil 464.8 404.3 15.0 Rest of the World 192.9 159.3 21.2 Total sales 1,980.3 1,697.3 16.7 Associated companies 89.9 107.3 -16.2 Grand total 2,070.2 1,804.6 14.7 In Poland, volumes contracted by 2.3% from 2005. Outside the European Union, in 2006 Fiat Auto intensified its activities on those markets where its position is consolidated, such as Brazil, Argentina, and Turkey. At the same time, it pursued growth opportunities on other emerging markets together with strong local partners. In Brazil, the Sector delivered 464,800 cars and light commercial vehicles. It increased its sales by 15% from 2005 and confirmed its leadership position on the market. This excellent result is mainly attributable to the success of flex versions (which run on both alcohol and gasoline) of the Palio and Mille models, as well as the Fiat Idea, voted Carro Do Año (Car of the Year) in Brazil. Economic recovery continued in Argentina. The automobile market expanded by 16.2% from 2005, and Fiat Auto reported a market share of 10.8%, down slightly from 2005 (-1.6 percentage points). Deliveries of automobiles and light commercial vehicles decreased by 0.7%, to a total of 43,800 units. In Turkey, the automotive industry slowed down in 2006, together with the rest of the economy. The automobile and light commercial vehicle market totalled approximately 621,000 units, down 13.6% from 2005. Tofas (a local joint venture in which Fiat Auto has a 37.9% interest) reported a 9.1% decrease in deliveries. However, its aggregate market share was 11.8%, up 0.6 percentage points from the previous year. This improvement was driven by the New Doblò, New Palio, and Albea. In regard to light commercial vehicles only, a total of 323,500 units were delivered in 2006, for an increase of 13.4% from 2005. This was largely attributable to the New Ducato, which enjoyed great success following its introduction at the end of May 2006, and the New Doblò. In Western Europe, deliveries totalled 211,900 units (+16.5%). With the exception of Germany, where deliveries fell by 1.9%, the other European countries reported an increase in the number of units delivered: France +40.1%, Italy +24.4%, Great Britain +10.7%, Spain +2.9%. During 2006, the Sector continued its strategy of targeted alliances to reinforce its position on international markets, enter new segments and technologies, enhance its know-how, and access new markets. The primary objective of these agreements was to reinforce the Sector’s presence on two high-growth markets, Russia and India. The collaboration between Fiat Auto and the Russian car maker Severstal Auto has evolved in a series of steps. At the beginning of 2006, agreements were reached for the assembly in Russia, starting in 2007, of Albea, Palio, and Doblò models based on CKD produced by Tofas, as well as for the import and distribution in Russia of Fiat cars and light commercial vehicles. In March 2006, a letter of intent was signed to further develop of the strategic partnership between Fiat and Severstal in all industrial areas of the Fiat Group. An agreement was signed in July for production and distribution of the Ducato in Russia by Severstal. Production is planned to start in the last quarter of 2007. Cooperation with India was also intense. After reaching an agreement in January 2006 for the sale of Fiat cars in India through joint use of the sales network, Fiat and Tata Motors signed a memorandum of understanding in July for industrial collaboration; within this context, in December they signed an agreement for the creation of a joint venture in India for the production of cars, engines and transmissions. Fiat Auto will introduce the Grande Punto and Fiat Linea. On the basis of a joint analysis undertaken in July 2006, Fiat and Tata Motors continued studies for industrial and commercial cooperation in Latin America: these studies resulted in an agreement, signed in February 2007, which calls for a Tata license to build a pick-up vehicle in the Fiat Group Automobiles plant in Cordoba, Argentina. These important partnership agreements are complemented by the license to produce diesel engines granted to Suzuki in March 2006, the May 2006 agreement with PSA Peugeot Citroën for production at the Fiat plant in Cordoba of a transmission for the French customer, and the signing in October of a memorandum of understanding with the Chinese company Chery Automobiles for the supply of gasoline engines to Fiat Auto. Report on Operations Fiat Auto 63
Page 1 and 2: Annual Report Consolidated and Stat
Page 3 and 4: But it does move. Galileo Galilei
Page 5 and 6: Letter from the Chairman and the Ch
Page 7 and 8: The Fiat Group The Fiat Group perfo
Page 9 and 10: Stockholders Financial communicatio
Page 11 and 12: in 2003, and now the Panda Hydrogen
Page 13 and 14: The meeting with the EWC Selected C
Page 15 and 16: Revenues by Business Area (in milli
Page 17 and 18: The breakdown of trading profit by
Page 19 and 20: Investment income was 156 million e
Page 21 and 22: If working capital is restated to i
Page 23 and 24: Financial Services Revenues (in mil
Page 25 and 26: Statement of Changes in Net Industr
Page 27 and 28: strategic consistency, economic fea
Page 29 and 30: The Board of Directors, at its meet
Page 31: There can be no motion without some
Page 35 and 36: Maserati Operating Performance In 2
Page 37 and 38: Trucks and Commercial Vehicles Ivec
Page 39 and 40: Fiat Powertrain Technologies Operat
Page 41 and 42: Metallurgical Products - Teksid Pro
Page 43 and 44: Motion for Approval of the Financia
Page 45 and 46: Consolidated Income Statement (*) (
Page 47 and 48: Statement of Changes in Stockholder
Page 49 and 50: partially from the market: the rema
Page 51 and 52: Measurement Investments in unconsol
Page 53 and 54: charges for risk provisions and wri
Page 55 and 56: Union market for the Fiat Auto and
Page 57 and 58: Composition and principal changes I
Page 59 and 60: Net financial expenses in 2006 (exc
Page 61 and 62: Year of expiry Total at December Be
Page 63 and 64: The net carrying amount of Intangib
Page 65 and 66: 14. Property, plant and equipment I
Page 67 and 68: In 2005 Changes in accumulated depr
Page 69 and 70: esulting in a reduction of 1,213 mi
Page 71 and 72: Receivables from financing activiti
Page 73 and 74: (the residual debt of the Exchangea
Page 75 and 76: The reconciliation of the number of
Page 77 and 78: A summary of outstanding stock opti
Page 79 and 80: Under the CNH EIP, performance-base
Page 81 and 82: 26. Provisions for employee benefit
Page 83 and 84:
Changes in the present value of Pos
Page 85 and 86:
■ Commercial risks - This provisi
Page 87 and 88:
31, 2006 (872 million euros at Dece
Page 89 and 90:
Fidis Retail Italia (FRI) All the r
Page 91 and 92:
Other and Magneti Business elimina-
Page 93 and 94:
Credit risk The maximum credit risk
Page 95 and 96:
The increase over the prior year re
Page 97 and 98:
■ Current trade receivables of 78
Page 99 and 100:
The book value at the disposal date
Page 101 and 102:
198 Appendix The Companies of the F
Page 103 and 104:
Subsidiaries consolidated on a line
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
% of Group % of consoli- Interest %
Page 113 and 114:
Subsidiaries accounted for using th
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
234 Financial Review of Fiat S.p.A.
Page 121 and 122:
(*) (*) Income Statement Balance Sh
Page 123 and 124:
Income Statement pursuant to Consob
Page 125 and 126:
When an impairment loss on assets s
Page 127 and 128:
Provisions The company recognises p
Page 129 and 130:
4. Other operating income Other ope
Page 131 and 132:
Net income from derivative financia
Page 133 and 134:
12. Property, plant and equipment T
Page 135 and 136:
15. Other non-current assets At Dec
Page 137 and 138:
Regarding changes in 2005, the Mand
Page 139 and 140:
A summary of outstanding stock opti
Page 141 and 142:
The amounts recognised in the Incom
Page 143 and 144:
The item Payables to Group companie
Page 145 and 146:
These relate to: ■ guarantees of
Page 147 and 148:
Counterparty Other Current Other No
Page 149 and 150:
32. Significant non-recurring trans
Page 151 and 152:
Fees paid to Members of the Board o
Page 153 and 154:
Financial statement format Fiat S.p
Page 155 and 156:
Deferred tax assets Reclassificatio
Page 157 and 158:
Reconciliation of net profit (loss)
Page 159 and 160:
B. Employee benefits The employees
Page 161 and 162:
Auditors’ Reports Auditors’ Rep
Page 163 and 164:
Reports of the Board of Statutory A
Page 165 and 166:
that numerous transactions involvin
Page 167 and 168:
Motion for Approval of the Financia
Page 169 and 170:
Motion to amend Articles 9, 11, 12,
Page 171 and 172:
Stockholders Meeting and will be ef
Page 173 and 174:
Graphic design Atelier Roger Pfund,
show all

2006 Annual Report - Fiat SpA

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?