The Fiat Group in 1999 - Report on Operations - Fiat SpA

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COMMERCIAL VEHICLES — IVECO
Highlights
(<strong>in</strong> millions of euros) <strong>1999</strong> 1998 1997
Net revenues 7,387 6,649 5,850
Operat<strong>in</strong>g <strong>in</strong>come 311 261 203
As a % of revenues 4.2 3.9 3.5
Income before m<strong>in</strong>ority <strong>in</strong>terest 180 192 174
Cash flow 433 368 374
Capital expenditures 359 307 265
Research and development 215 200 187
Net <strong>in</strong>vested capital 2,359 1,764 1,440
Number of employees 36,217 31,912 32,074
SALES PERFORMANCE
In <strong>1999</strong>, the European market for commercial vehicles showed
the same susta<strong>in</strong>ed growth as <strong>in</strong> the previous fiscal year,
prolong<strong>in</strong>g the expansion that started <strong>in</strong> 1994.
In Western Europe, demand for commercial vehicles with
a curb weight of 3.5 tons or more reached 629,000 units
<strong>in</strong> <strong>1999</strong>, or 10.8% more than a year earlier.
<strong>The</strong> breakdown by country shows ga<strong>in</strong>s <strong>in</strong> all European
markets, with the exception of Great Brita<strong>in</strong> (-2.8%).
Particularly healthy <strong>in</strong>creases were recorded <strong>in</strong> Italy (+24.8%)
and Spa<strong>in</strong> (+22.2%). <strong>The</strong> German and French markets also
did remarkably well, ris<strong>in</strong>g 13.6% and 12.4%, respectively.
An analysis by segment reveals that while the <strong>in</strong>crease was
across the board, it was more pronounced for heavy-load
vehicles (curb weight of 16 tons or more), where demand grew
by 13.8% to 233,000 units, compared with 204,700 <strong>in</strong> 1998.
Overall, Iveco sold 149,900 vehicles, or 9.6% more than <strong>in</strong>
1998. If the contribution of the jo<strong>in</strong>t ventures and licensees
is added, the total rises to 192,000 units, about the same
as <strong>in</strong> the previous fiscal year.
In Western Europe, the Sector shipped 119,800 vehicles, for
a ga<strong>in</strong> of 7.7% over 1998. <strong>The</strong> best results were achieved <strong>in</strong>
France (+23.3%), Spa<strong>in</strong> (+16.3%) and Italy (11.6%), but sales
were up <strong>in</strong> all other European countries with the exception of
Great Brita<strong>in</strong> (-12.2%).
Sales to customers outside Western Europe totaled 30,100
units (25,600 <strong>in</strong> 1998). Start<strong>in</strong>g with <strong>1999</strong>, this figure <strong>in</strong>cludes
50% (9,000 units) of the light commercial vehicles shipped
by Naveco, a Ch<strong>in</strong>ese jo<strong>in</strong>t venture <strong>in</strong> which the Sector holds
a 50% <strong>in</strong>terest.
Irisbus, a recently established jo<strong>in</strong>t venture owned <strong>in</strong> equal
shares with Renault, sold a total of 8,800 units <strong>in</strong> <strong>1999</strong>.
Dur<strong>in</strong>g the year, Irisbus cont<strong>in</strong>ued to expand its operations
and acquired a controll<strong>in</strong>g <strong>in</strong>terest <strong>in</strong> Ikarus, a Hungarian bus
manufacturer.
Commercial Vehicles Market (curb weight ≥ 3.5 tons)
99/98
(<strong>in</strong> thousands of units) <strong>1999</strong> 1998 ∆ <strong>in</strong> %
France 100.4 89.3 12.4
Germany 149.3 131.4 13.6
Great Brita<strong>in</strong> 105.5 108.5 (2.8)
Italy 85.0 68.1 24.8
Spa<strong>in</strong> 64.3 52.6 22.2
Western Europe 629.0 567.5 10.8
Sales Performance – Units Sold
99/98
(<strong>in</strong> thousands of units) <strong>1999</strong> 1998 ∆ <strong>in</strong> %
France 20.1 16.3 23.3
Germany 16.9 16.6 1.8
Great Brita<strong>in</strong> 13.7 15.6 (12.2)
Italy 41.5 37.2 11.6
Spa<strong>in</strong> 15.0 12.9 16.3
Western Europe 119.8 111.2 7.7
Rest of the world 30.1 25.6 17.6
Total units sold 149.9 136.8 9.6
Jo<strong>in</strong>t ventures (*) 42.1 56.5 (25.5)
Grand total 192.0 193.3 (0.7)
(*) <strong>The</strong> figure for 1998 does not <strong>in</strong>clude the vehicles sold by Naveco (20,600 units).