Fiat Auto has reported a third quarter trading profit of EUR51m, a substantial improvement from a loss of EUR85m a year ago.
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Fiat group cited higher sales volumes and a better product mix as its Automobiles business achieved a 25.5% increase in revenues to EUR6.0bn. Fiat Auto (Fiat, Alfa Romeo, Lancia and Fiat light commercial vehicles) had revenues of EUR5.5bn, up 27.6% from Q3 2005.
Fiat Auto delivered 459,700 vehicles, 21.4% more than in Q3 2005. This was in sharp contrast with market conditions both in western Europe, where demand dropped by 2.9% while Fiat Auto deliveries rose by 24.1% (279,000 units delivered), and in Italy, where the market contracted by 6.2% while Fiat deliveries rose 25.1%. Fiat Auto volume rose significantly in all European countries: +55.4% in Great Britain, +26.9% in France, +12.5% in Germany, and +10.1% in Spain.
Consequently, Fiat Auto’s market share improved to 30.8% in Italy (+3.2 percentage points) and to 7.1% in western Europe (+1.0 percentage point).
In Brazil, where overall demand expanded by 17.2%, Fiat deliveries rose by 20.3%, achieving market share of 26.3% (+1.5 percentage points).
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By GlobalDataA total of 70,100 light commercial vehicles were delivered (+4%).
The Iveco truck and van division reported revenues of EUR2.1bn in Q3 2006, up 14.4% from the previous year. Iveco delivered 40,300 units during the period (including 4,700 units with buy-back), up 7.2% from the same period in 2005.
Iveco had a trading profit of EUR156m in Q3 2006, versus EUR87m in Q3 2005. This 79% increase stemmed from higher volume, better pricing/mix and efficiency gains on governance costs.
Trading profit rose 84% to EUR427m, as Fiat Auto posted a fourth consecutive quarterly profit (EUR51m) and Iveco rose 79% to EUR156m. The CNH farm equipment business trading profit was up slightly at EUR137m.
Trading profit from Components & Production Systems was down sharply to EUR83m (down EUR 18m) as improvements at Magneti Marelli and FPT could not offset the trading loss at Comau.
Net income totaled EUR200m, an improvement of EUR409m over the third quarter of 2005, excluding unusual items.
Fiat group revenues increased 11.4% to EUR11.8bn.
Trading profit was EUR427m, compared with a trading profit of EUR232m in Q3 2005 (up 84% or EUR 195m).
Operating income, totaling EUR427m, included gains on disposals of investments for EUR 159m (chiefly on the sale of Banca Unione di Credito – BUC, EUR80m), offset by restructuring charges (EUR129m) and other unusual charges (EUR30m) mainly attributable to CNH and Comau.
The EUR409m operating income reported in Q3 2005 included EUR881m in capital gains, mainly on Italenergia Bis, largely offset by restructuring costs of EUR420m and other negative unusual items for a total of EUR284
million.
Net income before minority interest was EUR200m in Q3 2006, compared with net income of EUR826m in the same period of 2005.
Excluding the impact of net unusual items, the group would have posted a net loss of EUR209m in Q3 2005.
On a like-for-like basis, net income improved by EUR409m for the quarter.
