Fiat Group revenues rose 12.3% year on year to EUR56.3bn while automobiles and related components businesses (Fiat SpA post 1 January demerger) booked revenues up 9.8% to EUR35.9bn and CNH, Iveco and related powertrain activities (Fiat Industrial) had revenues up 18.8% to EUR21.3bn.
Trading profit doubled to EUR2.2bn with Fiat booking EUR1.1bn and trading margin at 3.1% (EUR736m and 2.3% in 2009). Automobiles contributed EUR934m (up EUR215m) and Fiat Industrial posted a trading profit of EUR1.1bn and trading margin at 5.1% (EUR322m and 1.8% for 2009), with trading profit for CNH and Iveco more than double.
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Fiat SpA had said last October SpA it expected full year earnings to be at least EUR2bn (US$2.8bn) compared with a previous estimate of EUR1.2bn. The revised figure followed an improved third quarter trading profit of EUR586m beating the EUR409m estimate of analysts thanks to improved sales of Iveco trucks and Case New Holland tractors.
The group was demerged into Fiat SpA – (Alfa Romeo, Abarth, Fiat, Ferrari, Lancia, Maserati, Fiat LCVs, and the part of Fiat Power Train responsible for cars and commercial vehicles plus component companies Magneti Marelli, Teksid and Comau – and Fiat Industrial – CNH (which includes the Case, New Holland, Steyr and Kobelco brands), Iveco commercial vehicles (which include Iveco, Iveco Magirus, Iveco Astra and Iveco Irisbus brands) and the industrial and marine division of FPT – on 1 January.
Net profit was EUR600m (a net loss of EUR848m was booked in 2009), EUR222m of which related to Fiat post demerger and EUR378m to Fiat Industrial. Group net profit reflected EUR195m in special charges (EUR699m for 2009).
Net industrial debt level was reduced significantly to EUR2.4bn (year-end 2009: EUR4.4bn), principally reflecting the positive operating performance for all businesses. The split in net industrial debt between Fiat post demerger and Fiat Industrial, which takes into account the effects deriving from the demerger, was EUR0.5bn and EUR1.9bn, respectively.
Liquidity strengthened to EUR15.9bn from EUR12.4bn at the end of 2009: EUR12.2bn for Fiat post demerger and EUR3.7bn for Fiat Industrial.
The board will recommend a total dividend ranging from EUR0.09-EUR0.31 across the three classes of Fiat SpA shares.
For 2011, top-line growth for Fiat is expected to be in the range of 2-3%, with trading profit in the range of EUR0.9-1.2bn. For Fiat Industrial, the plan presented to the financial community in April 2010 was confirmed with 2011 revenues about EUR22bn and trading profit in the range of EUR1.2-1.4bn. Net industrial debt at the end of 2011 is expected at levels of EUR1.5-1.8bn for Fiat and of EUR1.8-2.0bn for Fiat Industrial.
