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

FERRARI AND MASERATI
In <strong>1999</strong>, Ferrari launched the 360 Modena, a product with
a dramatic impact on its unit sales and revenues. S<strong>in</strong>ce the
launch date, over 1,400 of these cars have been delivered to
end customers, driv<strong>in</strong>g total registrations of new Ferrari cars
to 3,775 units and produc<strong>in</strong>g outstand<strong>in</strong>g results <strong>in</strong> terms of
brand image.
In <strong>1999</strong>, Ferrari acquired the 50% of Maserati it did not own,
reaffirm<strong>in</strong>g its commitment to use the Maserati models to fill
a market niche that is complementary to its exclusive l<strong>in</strong>e of
cars.
<strong>The</strong> highlights of Ferrari’s f<strong>in</strong>ancial results are reviewed below:
❚ Units shipped to end customers <strong>in</strong>creased for the sixth
consecutive year, reach<strong>in</strong>g 3,775 cars, or 3.8% more than <strong>in</strong>
1998. Shipments were up 22.6% <strong>in</strong> North America, where
they passed the 1,000-unit milestone, and held steady at
1998 levels <strong>in</strong> Europe (about 2,200 units) and the Far East
(420 units). In the Middle East, with 67 units, sales were
ahead 24% compared with 1998.
❚ Revenues from Ferrari brand cars totaled 647 million euros,
or 11.3% more than <strong>in</strong> 1998.
❚ Ferrari’s consolidated operat<strong>in</strong>g result came to 47 million
euros, about the same as <strong>in</strong> 1998.
In <strong>1999</strong>, Maserati reported a marked improvement <strong>in</strong> all
measures of performance. In particular:
❚ It sold 1,538 cars, triple the number shipped <strong>in</strong> 1998,
underscor<strong>in</strong>g the success of the efforts made by the <strong>Group</strong>
dur<strong>in</strong>g the last two years to reenergize the Maserati brand.
With 1,186 units shipped, the 3200 GT accounts for the
lion’s share of the cars sold to end customers. Sales were
up <strong>in</strong> Italy, Switzerland and France, with the biggest ga<strong>in</strong>
posted <strong>in</strong> Germany, where motorists bought 321 new
Maseratis.
❚ Revenues <strong>in</strong>creased to 111 million euros, compared with
38 million euros <strong>in</strong> 1998.
❚ <strong>The</strong> operat<strong>in</strong>g result also improved, with the company
report<strong>in</strong>g a smaller operat<strong>in</strong>g loss (24 million euros) than <strong>in</strong>
1998, despite the research and development costs <strong>in</strong>curred
to develop new models.
At the consolidated Ferrari/Maserati level, more than
5,300 cars were delivered to end customers, generat<strong>in</strong>g
consolidated revenues of 758 million euros, or 22.8% more
than the 617 million euros booked <strong>in</strong> 1998.
Over the same period, consolidated operat<strong>in</strong>g <strong>in</strong>come more
than doubled to 24 million euros, after depreciation and
amortization of 60 million euros.
<strong>The</strong> Sector’s <strong>in</strong>terest <strong>in</strong> net <strong>in</strong>come came to 5.8 million euros.
<strong>The</strong> decl<strong>in</strong>e from the 8 million euros earned <strong>in</strong> 1998 reflects a
higher tax rate and a greater percentage of Maserati’s loss
<strong>in</strong>cluded <strong>in</strong> the consolidated result.
<strong>The</strong> return on average net <strong>in</strong>vested capital reached 12.5%,
exceed<strong>in</strong>g the target set by the <strong>Group</strong> for value creation
purposes.
<strong>1999</strong> was a positive and important year for the Sector’s rac<strong>in</strong>g
activities, as Ferrari rega<strong>in</strong>ed the world championship after 16
years. It won the Constructors’ Championship, which best
epitomizes the quality and prowess of its rac<strong>in</strong>g team.
<strong>Report</strong> on Operations – Ferrari and Maserati
51