Fiat Group
Press Release
2009 FULL YEAR AND FOURTH QUARTER RESULTS
FIAT GROUP CLOSES 2009 WITH TRADING PROFIT AT 1.1 BILLION AND NET INDUSTRIAL DEBT AT 4.4 BILLION, BOTH
AHEAD OF GUIDANCE. LIQUIDITY REINFORCED TO 12.4 BILLION. OUTLOOK FOR 2010 REMAINS POSITIVE. BOARD TO
PROPOSE 237 MILLION IN DIVIDENDS.
· Revenues of 50.1 billion were down 16% over the record 2008 level (59.6 billion), but Q4 improved 3.6% over
2008.
· Trading profit was 1.1 billion (2008: 3.4 billion), with a strong contribution from the Automobiles business.
· Trading margin was 2.1%. Sequential quarter-by-quarter improvements were achieved during the year as
aggressive cost containment measures took effect and market demand stabilised.
· Net loss of 0.8 billion, which includes the impact of 0.6 billion in unusual charges (2008: profit of 1.7 billion).
· Net industrial debt level was reduced to 4.4 billion (2008: 5.9 billion) and liquidity increased significantly to 12.4
billion (2008: 3.9 billion).
· On the basis of the combined net income performance of the Group in 2008 and 2009, the Board of Directors is
recommending an aggregate dividend across the 3 classes of shares of 237 million (excluding own-shares).
· 2010 top line growth is expected in the range of 3-6%, with trading profit of 1.5 billion and net debt levels below 5
billion.
The Board of Directors of Fiat S.p.A. met today in Turin under the chairmanship of Luca Cordero di Montezemolo to approve the Group's full year
and fourth quarter 2009 results.
· Group revenues were 50.1 billion, down 15.9% year-on-year.
FIAT GROUP The significant declines in demand experienced by all businesses
Income Statement Full Year in H1 (-23.8% y-o-y) reduced substantially during the second half
(-6.6% y-o-y):
( millions) 2009 2008 - Fiat Group Automobiles (FGA) achieved revenues of 26.3 billion,
Net revenues 50,102 59,564 2.4% below 2008, on a total of 2,150,700 cars and light commercial
% change -15.9 vehicles delivered (in line with 2008). FGA closed the year with its
Trading profit/(loss) 1,058 3,362 highest ever Q4 revenues. Full year market share for passenger cars
Change -2,304 increased in Western Europe (+0.6 pp to 8.8%), with increases in
Trading margin (%) 2.1 5.6 Italy (+0.9 pp to 32.8%) and several other key markets. Fiat
maintained its leading position in Brazil, with an overall share of
Operating profit/(loss) 359 2,972 24.5% in a market that grew 12.6%.
Change -2,613 - Agricultural and Construction Equipment (CNH) revenues were down
Profit/(loss) before (367) 2,187 20.9% to 10.1 billion reflecting the severe global construction
taxes equipment industry decline and weaker market conditions for the
Change -2,554 agricultural business (compared to record high 2008 levels,
Profit/(loss) (848) 1,721 particularly for combines). CNH achieved share gains for higher-
Change -2,569 powered tractors in North America and for combines in Latin
EPS () America. For construction equipment, market share improved in Latin
ordinary shares (0.677) 1.290 America for both the heavy and light segments.
preference shares (0.677) 1.290
savings shares (0.677) 1.445 - Trucks and Commercial Vehicles (Iveco) reported full year revenues
of 7.2 billion (-34.1%), with declines in vehicles delivery (-45.9% to
103.866 units) reflecting the sharp market decline, especially in
Europe and in the heavy segment.
FIAT GROUP
Income Statement 4th Quarter · Trading profit was 1.1 billion (2008: 3.4 billion). Despite
significantly weaker demand, particularly in H1, consistent
( millions) 2009 2008 quarter-by-quarter improvements were achieved in trading
margin primarily through realignment of production levels and
Net revenues 13,601 13,133 aggressive cost containment:
% change 3.6 - FGA achieved a trading profit of 470 million (2008: 691 million),
Trading profit/(loss) 488 663
with cost containment measures and volume recovery in H2 only
Change -175 partially compensating for the fall in demand in the first half and a
Trading margin (%) 3.6 5.0 less favourable product mix.
Operating profit/(loss) 63 256 - CNH reported trading profit of 337 million for the year (2008: 1,122
Change -193 million). Rigorous cost containment and positive pricing only partially
offset the drastic volume declines in the construction equipment
Profit/(loss) before
(119) (79)
taxes market.
- Iveco posted a trading profit of 105 million (2008: 838 million).
Change -40 Despite the severe drop in volumes over 2008 levels, decisive cost
Profit/(loss) (283) 180 FY 2009
reduction measures yielded a positive result and trading margin
Change -463 increased quarter-by-quarter. After sales activities, Latin America and
EPS () the special vehicles business, seasonally stronger in the latter part of
ordinary shares (0.227) 0.132 the year, also provided positive contributions.
preference shares (0.227) 0.132
savings shares (0.227) 0.132
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· Net industrial debt was reduced 1.5 billion to 4.4 billion, driven primarily by rigorous working capital management,
including significant destocking across all businesses.
· Liquidity at year-end stood at 12.4 billion, guaranteeing the Group adequate resources to cover scheduled maturities
well beyond 2011.
· The Group re-accessed European and US capital markets in the second half, raising nearly 5 billion through 4
significantly over-subscribed bond issues.
FY 2009
2
Group results
Group revenues for 2009 totalled 50.1 billion, a 15.9% decrease over 2008. Demand
was impacted significantly by the global economic slowdown. The levels of decline
experienced in the second half of the year, however, were more contained than for the
first six months.
FIAT GROUP
Revenues by business Full Year
( million) 2009 2008
Automobiles (Fiat Group Automobiles, Maserati, Ferrari) 28,351 29,380
% change -3.5
Agricultural and Construction Equipment (CNH) 10,107 12,781
% change -20.9
Trucks and Commercial Vehicles (Iveco) 7,183 10,894
% change -34.1
Components & Production Systems (FPT, Magneti Marelli, Teksid, Comau) 10,327 13,793
% change -25.1
Other Businesses 1,096 1,394
% change -21.4
Eliminations (6,962) (8,678)
Total 50,102 59,564
% change -15.9
Following adoption of improvements to IAS 16, 2008 revenues for CNH and Iveco have been restated by 58 million and 126 million,
respectively, resulting in a combined increase in consolidated revenues of 184 million. This restatement had no effect on trading or net
profit.
For the fourth quarter of 2009, Fiat Group recorded 13.6 billion in revenues,
representing a 3.6% increase over the final quarter of 2008, when the effects of the
economic downturn had already begun to heavily impact volumes.
FIAT GROUP
Revenues by business 4th Quarter
( million) 2009 2008
Automobiles (Fiat Group Automobiles, Maserati, Ferrari) 7,815 6,333
% change 23.4
Agricultural and Construction Equipment (CNH) 2,381 3,051
% change -22.0
Trucks and Commercial Vehicles (Iveco) 2,172 2,361
% change -8.0
Components & Production Systems (FPT, Magneti Marelli, Teksid, Comau) 2,872 2,754
% change 4.3
Other Businesses 296 357 FY 2009
% change -17.1
Eliminations (1,935) (1,723)
Total 13,601 13,133
% change 3.6
Following adoption of improvements to IAS 16, revenues for CNH and Iveco for Q4 2008 have been restated by 14 million and 27 million,
respectively, representing a combined increase in consolidated revenues of 41 million. This restatement had no effect on trading or net profit.
3
The Group's full year trading profit was 1,058 million, compared with 3,362 million for
2008. Decisive cost containment measures helped mitigate the impact of revenue
declines, contributing to the achievement of a 2.1% trading margin.
FIAT GROUP
Trading profit/(loss) by business Full Year
( million) 2009 2008
Automobiles (Fiat Group Automobiles, Maserati, Ferrari) 719 1,102
Change -383
Agricultural and Construction Equipment (CNH) 337 1,122
Change -785
Trucks and Commercial Vehicles (Iveco) 105 838
Change -733
Components & Production Systems (FPT, Magneti Marelli, Teksid, Comau) (40) 402
Change -442
Other Businesses and Eliminations (63) (102)
Change 39
Total 1,058 3,362
Change -2,304
For the fourth quarter of 2009, trading profit was 488 million, compared with
663 million for the same period in 2008. The trading margin of 3.6% confirmed the
steady quarterly margin recovery achieved during each quarter of 2009.
FIAT GROUP
Trading profit/(loss) by business 4th Quarter
( million) 2009 2008
Automobiles (Fiat Group Automobiles, Maserati, Ferrari) 257 202
Change 55
Agricultural and Construction Equipment (CNH) 99 241
Change -142
Trucks and Commercial Vehicles (Iveco) 77 187
Change -110
Components & Production Systems (FPT, Magneti Marelli, Teksid, Comau) 77 32
Change 45
Other Businesses and Eliminations (22) 1
Change -23
Total 488 663
Change -175
Operating profit was 359 million for 2009, compared with 2,972 million for 2008. The FY 2009
decrease reflected the lower trading profit for the year (-2,304 million). Net unusual
expense of 699 million (net unusual expense of 390 million for 2008) consisted of
312 million in restructuring costs (165 million for 2008), in addition to 391 million in
other unusual items (245 million for 2008), which included write-downs by the
Automobiles business of certain investments in platforms and architectures related to the
4
strategic realignment with Chrysler Group LLC, in addition to other asset write-downs
recognized by various Sectors as a consequence of the current global economic crisis.
Net financial expense totalled 753 million (947 million for 2008) and included a
117 million gain in the mark-to-market value of two stock option-related equity swaps (a
263 million loss in 2008). Excluding the effect of those equity swaps, financial expense
for the year increased 186 million, primarily due to a higher level of debt during the year.
The Group recorded a loss before taxes for the year of 367 million (profit before taxes
of 2,187 million for 2008). This reflects a significantly lower operating result (down
2,613 million) and a decrease in investment income (down 135 million), which were
partially offset by lower net financial expense.
Income taxes totalled 481 million (466 million for 2008) and related to the taxable
income of companies operating outside Italy and employment-related cash income taxes
(IRAP) in Italy.
2009 closed with a net loss of 848 million (267 million loss excluding the impact of
unusuals), compared with a profit of 1,721 million for the prior year.
Despite the considerable decrease in business volumes and consequent effect on
profitability, the realignment of production levels (which impacted positively on the level of
working capital) and disciplined management of capital expenditure resulted in an
improvement in net industrial debt to 4.4 billion, down 1.5 billion compared to year-
end 2008.
At 31 December 2009, Group liquidity was at 12.4 billion (3.9 billion at year-end
2008), therefore covering contractual cash maturities well beyond 2011 and ensuring the
Group significant financial flexibility. Four major bond issues were completed in the
second half, providing a total of 4.7 billion in financing. Furthermore, during the year the
Group also took advantage of the progressive restoring of the North American ABS
market.
FY 2009
5
FIAT GROUP
Key Balance Sheet Data
At At
( million) 31.12.2009 31.12.2008
Total assets 67,235 61,772
Total equity 11,115 11,101
FIAT GROUP
Net Debt
( million) At At
31.12.2009 31.12.2008
Financial debt (28,527) (21,379)
- Asset-backed financing (7,086) (6,663)
- Other debt (21,441) (14,716)
Current financial receivables from financial services companies under 14 3
joint control (1)
Financial payables, net of intersegment balances and current
financial receivables from jointly-controlled Financial Services (28,513) (21,376)
entities
Other financial assets/(liabilities) (2) 172 (438)
Liquidity 12,443 3,860
Net Debt (15,898) (17,954)
Industrial Activities (4,418) (5,949)
Financial Services (11,480) (12,005)
(1) This includes current financial receivables from the JV FGA Capital
(2) This includes the positive and negative fair value of derivative financial instruments
FIAT GROUP
Change in Net Industrial Debt
( million) 2009 2008
Cash from Operating Activities before change in working capital 1,937 3,754
Cash from Operating Activities 4,501 150
Net Industrial Cash Flow (1) 1,644 (5,765)
Change in Net Industrial Debt 1,531 (6,304)
(1) Change in net industrial debt, excluding any capital increases, dividends, share buy-backs and currency translation impacts
FY 2009
6
Dividends
The Board of Directors, on the basis of expected income available for distribution of Fiat
S.p.A. and pending formal approval of the Group's 2009 annual accounts on February
16th 2010, intends to propose to the shareholders at the Annual Stockholders Meeting an
aggregate dividend payout of 244 million (237 million excluding treasury shares
currently owned by the Group) equal to 30% of the combined 2008 consolidated net
income and the 2009 consolidated net loss.
The resumption of dividend distributions by the Group is a reflection of the normalization
of capital markets as sources of funding for the Group, and the conviction in the Group's
ability to continue to generate earnings, albeit in a significantly different trading market
context.
The dividend distribution will be proposed as follows:
· 0.17 per ordinary share, representing a total distribution of 186 million (179 million
excluding the treasury shares currently owned);
· 0.31 per preference share, representing a total distribution of 32 million;
· 0.325 per savings share, representing a total distribution of 26 million.
FY 2009
7
AUTOMOBILES Automobiles
Net revenues Full Year
( million) 2009 2008 Fiat Group Automobiles
Fiat Group 26,293 26,937
Automobiles For 2009, Fiat Group Automobiles posted
% change -2.4
Maserati 448 825 revenues of 26.3 billion, a 2.4% decrease
% change -45.7
Ferrari 1,778 1,921 over 2008 (substantially unchanged at
% change -7.4 constant exchange rates). After the sharp
Eliminations (168) (303)
Total 28,351 29,380 volume declines experienced in the first half
% change -3.5 resulting from the significant contraction in
demand, the Sector achieved year-on-year
AUTOMOBILES
Trading profit/(loss) Full Year volume increases for passenger cars in the
( million) 2009 2008 second half.
Fiat Group 470 691
Automobiles
Change -221 Fiat Group Automobiles delivered a total of
Maserati 11 72 2,150,700 passenger cars and light
Change -61
Ferrari 238 339 commercial vehicles for the year, in line with
Change -101 2008 (2,152,500). There was a significant
Total 719 1,102
Change -383 divergence, however, between performance
Trading margin % 2.5 3.8 for passenger cars (+5.7%) and light
commercial vehicles (-24.8%).
AUTOMOBILES
Net revenues 4th Quarter In Western Europe, total deliveries were
( million) 2009 2008
Fiat Group unchanged at 1,238,100 units. Performance
7,247 5,702
Automobiles was positive in Italy (+0.5%) and the UK
% change 27.1
Maserati 129 229 (+5.2%) and very strong growth was
% change -43.7
Ferrari 491 502 achieved in Germany (+46.2%). There was a
% change -2.2 decrease in France (-7.3%) and a sharp
Eliminations (52) (100)
Total 7,815 6,333 decline in Spain (-48.3%), with the latter also
% change 23.4
impacted by measures adopted to realign
dealer inventory levels to market demand.
AUTOMOBILES
Trading profit/(loss) 4th Quarter For passenger cars only, FGA delivered a
( million) 2009 2008
Fiat Group total of 1,843,400 units (+99,600 units over
190 65
Automobiles
Change 125 2008). For Western Europe, passenger car
Maserati 5 41 FY 2009
deliveries rose 8.9% to 1,085,100 units, with
Change -36
Ferrari 62 96 the level of demand increasing slightly
Change -34 (+0.5%) over 2008. Deliveries were up 6.2%
Total 257 202
Change 55 in Italy, 17.7% in the UK, and doubled in
Trading margin % 3.3 3.2 Germany (+96.6%), significantly outpacing
overall growth in those markets. Deliveries
8
increased 1% in France and were down 43.9% in Spain.
After a particularly negative start to the year, the introduction of incentives in several
major markets led to a gradual recovery in demand in Western Europe, where the
passenger vehicle market closed the year slightly higher than 2008 (+0.5%). These
schemes had a very positive impact on demand levels in Germany, where the market
was up 23.2% for the year, and France, which grew 10.7%. In Italy, government
incentives helped maintain demand substantially in line with 2008 (-0.2%). There was a
fall in demand in both the UK (-6.4%) and Spain (-17.9%), where incentives were
introduced toward the end of the first half. In Brazil, demand was up 12.6%, aided by
government incentives on new car purchases and a generally favourable economic
environment.
FGA's strong offering of environmentally friendly cars enabled the Sector to fully benefit
from eco-based government incentives. Fiat Group Automobiles continued to make
positive share gains in the passenger vehicle market, reaching 32.8% in Italy (+0.9
percentage points over 2008) and 8.8% in Western Europe (+0.6 percentage points).
FGA's relative performance was particularly strong in Germany (+1.5 percentage points
to 4.7%) and positive also in the UK (+0.6 percentage points to 3.5%). The Fiat brand
increased its market share to 7.1% in Western Europe (+0.5 percentage points over
2008) and 25.5% in Italy (+0.4 percentage points). Lancia and Alfa Romeo both improved
Western European market share by 0.1 percentage points, to 0.9% and 0.8%
respectively.
A total of 307,300 light commercial vehicles were delivered in 2009, representing a 24.8%
decrease over 2008. In Western Europe, where the overall market fell 27.4%, deliveries
were down 36.5% to 153,000 units. This was partially due to measures implemented to
realign dealer inventory levels with the significant slowdown in demand. Fiat Professional
increased market share 0.3 percentage points in Western Europe to 12.6%. Share was
down 3.4 percentage points in Italy (39.9%), driven by the phase out of Doblò (market
supply of the new Doblò in early 2010) and sharp drop in the camper segment, where
Fiat Professional has the lion's share of the market.
In Brazil, deliveries for cars and light commercial vehicles increased 12.6% over 2008.
FGA maintained its leadership of the market, recording a 24.5% share. FY 2009
Fiat Group Automobiles recorded a 470 million trading profit for 2009 (trading margin
of 1.8%), compared to the 691 million figure for 2008 (2.6% margin). The decrease was
primarily attributable to weaker demand for light commercial vehicles which was partially
offset by cost containment measures.
9
For Q4 2009, Fiat Group Automobiles had revenues of 7.2 billion, representing a 27.1%
increase over the same period in 2008, when the economic crisis had already begun to
reflect significantly on sales volumes. Trading profit was 190 million for the fourth
quarter (2.6% trading margin), compared to 65 million for the same period in 2008.
A total of 556,100 passenger cars and light commercial vehicles were delivered during
the quarter, up 30.1% over the same period in 2008 (+36.2% for passenger cars only). In
Western Europe, FGA delivered a total of 318,900 units, an increase of 27% (+33.1% for
passenger cars only).
In the fourth quarter, the passenger vehicle market recorded significant growth in
Western Europe (+21.5%) and Italy (+21.2%) compared to Q4 2008, a period marked by
a severe deterioration in economic conditions. Fiat Group Automobiles had a 31.5%
share in Italy (-0.2 percentage points over Q4 2008) and an 8.4% share in Western
Europe (+0.1 percentage points).
For the Fiat brand, 2009 was the year of the Punto Evo, a companion to the Grande
Punto, which sets a new standard in innovation, safety and style in the B segment. The
name Evo underscores the advancement and excellence in automotive technology
expressed, above all, by the extensive range of Euro 5 engines offered, including the
1.3 MultiJet II, 1.4 MultiAir and the bifuel CNG/gasoline engines. December saw the
press launch of Fiat's new Doblò, with renewed styling, range of engines and technical
specifications. Other products launched during 2009 include the Fiat 500C cabriolet with
an electrically controlled soft-top. Toward the end of the year, the new Euro 5 1.3 MultiJet
II engine, equipped with the Start&Stop system as standard, was made available on the
Fiat 500C and Fiat 500. Fiat also expanded its offer of bi-fuel vehicles (LPG/gasoline or
CNG/gasoline), adding versions of the Qubo, Punto Classic and Idea to the existing
Panda, Grande Punto and Bravo line up. In addition, the Sedici underwent styling and
engine upgrades.
In September 2009, after two years of leadership, JATO Dynamics once again confirmed
the Fiat brand as having the lowest average CO2 emissions amongst the top 25 selling
brands in Europe.
In 2009, Alfa Romeo launched the 105 hp and 135 hp MiTo 1.4 MultiAir, the Group's first
vehicle to be equipped with this new technology for application on gasoline engines. Also FY 2009
of note was the 170 hp "Quadrifoglio Verde" version. The range of engines available on
the MiTo was further expanded to include the 120 hp 1.4 Turbo gasoline, the first bifuel
(LPG/gasoline) turbo produced directly by the Group, and the 95 hp 1.3 JTDM-2 diesel
engine with the Start&Stop system as standard. During the year, Alfa Romeo also
10
launched two new Euro 5 engines: the 170 hp 2.0 JTDM diesel and the 200 hp 1750
Turbo gasoline (TBi) which are available on the Brera, Spider and 159 nameplates.
Lancia released the new Delta Executive, equipped with numerous advanced
technological features and the new 200 hp, 1.8 Di TurboJet, a Euro 5 direct injection
gasoline engine which offers the Delta more power and lower emissions. In October,
Lancia presented the Delta Turbo LPG, with its 120 hp 1.4 bifuel (LPG/gasoline) TurboJet
engine.
In 2009, Abarth presented two new models: the Abarth 695 "Tributo Ferrari" and the
Abarth 500 R3T, which will feature in an upcoming promotional street-racing trophy.
Fiat Professional released the Ducato 140 Natural Power at the beginning of the year
followed in the Autumn by the launch of the Fiorino Metano, a bi-fuel (CNG/gasoline)
vehicle which is the only one of its type in the segment. Capping off the year was the
arrival of the new Doblò Cargo, the latest and significantly upgraded version of a
commercial vehicle which to date has sold more than one million units.
Maserati
For 2009, Maserati reported revenues of 448 million, down 45.7% over the previous
year. A total of 4,489 cars were delivered to the network during the year, a 48.7% year-
on-year decrease attributable to the significant decline in demand in the company's
reference markets. Maserati maintained its overall market share, with an improvement in
the Quattroporte's segment.
For 2009, Maserati had a trading profit of 11 million (72 million for 2008) with a
realignment of production levels and rigorous cost containment measures partly offsetting
the significant decline in volumes.
Maserati reported 129 million in revenues for Q4 2009, down 43.7% over the same
period for the prior year. Despite continued volume declines, Maserati succeeded in
posting a trading profit of 5 million for the quarter (41 million for Q4 2008).
During the year, Maserati presented the Quattroporte Sport GT S, the best optimization
ever achieved by Maserati between a luxury sedan and a sports car. This was followed
by the GranTurismo S Automatic, a powerful 8-cylinder with highly evolved automatic FY 2009
transmission, and then the GranCabrio, the marque's first ever 4-seater cabriolet. This
soft-top convertible, the result of an extensive study in aerodynamics, offers a more
spacious interior than the average in its segment and is equipped with a 4.7 litre V8
engine (440 hp) coupled with a 6-speed transmission with torque converter.
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Ferrari
For 2009, Ferrari had revenues of 1,778 million, down 7.4% over 2008 due to lower
sales volumes and a less favourable sales mix. A total of 6,235 vehicles were delivered to
the network during the year, a decrease of 4.5% against an approximate 40% drop for
Ferrari's reference segment globally. In particular, deliveries of 8-cylinder vehicles
benefited from the success of the Ferrari California, while the new 458 Italia, presented in
the latter part of the year, did not contribute to 2009 results, but has already recorded a
significant order intake. A total of 6,294 units were sold to end customers (-5.5% over
2008).
Ferrari closed 2009 with a trading profit of 238 million, compared to 339 million for
2008. The year-on-year decrease reflects the negative impact of volumes and product
mix (both particularly favourable in 2008), in addition to unfavourable currency
movements. These negative effects were partially offset by efficiency gains.
For Q4 2009, Ferrari recorded revenues of 491 million, down 2.2% over the same
period for the prior year. Trading profit was 62 million. The decrease over the
96 million figure for Q4 2008 was attributable to the negative impact of product mix and
unfavourable currency impacts which were partially offset by increased efficiencies.
In 2009, Ferrari presented several new products. First and foremost the 458 Italia, a
vehicle that represents Italy in both name and spirit: from its creativity to its capacity to
innovate. This vehicle, which made its debut at the Frankfurt Motor Show in September,
represents a new generation. It is powered by a rear centre-mounted 4.5-litre 8-cylinder
engine capable of delivering 570 hp. The vehicle offers exceptional performance: a top
speed of more than 325 kilometres per hour and acceleration from 0 to 100 kph in under
3.4 seconds. In addition, with Ferrari's extensive competition experience, this
extraordinary concentration of innovation boasts outstanding fuel performance for a
supercar consuming just 13.3 l per 100 km. Also of note is the Handling GT Evoluzione
(HGTE) package on the 599 GTB Fiorano, which provides a decidedly sportier driving
experience. Also presented in 2009 was the 599XX, a non-type approved car for on-track
use, targeted at a select customer base who desire the highest level of performance and
technological innovation, some of which has been applied on a vehicle for the first time
ever. FY 2009
12
AGRICULTURAL AND CONSTRUCTION EQUIPMENT Agricultural and Construction
Revenues & Trading profit/(loss) Full Year Equipment
( million) 2009 2008
Net revenues 10,107 12,781 CNH Case New Holland had revenues of
% change -20.9 10.1 billion for 2009, a decrease of 20.9%
Trading profit 337 1,122
Change -785 over 2008 (-25.0% in US dollar terms),
Trading margin (%) 3.3 8.8 reflecting the severe global construction
equipment industry decline and weaker
AGRICULTURAL AND CONSTRUCTION EQUIPMENT
Revenues & Trading profit/(loss) 4th Quarter market conditions in the agricultural business
( million) 2009 2008 (compared to record high 2008 levels,
Net revenues 2,381 3,051 particularly for combines). Revenues from
% change -22.0
Trading profit 99 241 construction equipment sales were also
Change -142 impacted by heavy destocking actions both
Trading margin (%) 4.2 7.9
at company and dealer level. For agricultural
equipment, revenues were down slightly in
North America, with decreases in tractor sales and network destocking actions being
partially offset by stronger combine sales. Declines in the remaining regions were
attributable to an overall decline in the industry, network destocking actions and tight credit
markets.
In 2009, the global market for agricultural equipment decreased by 7%, with a decline in
retail unit volumes for tractors and combines of 7% and 19%, respectively, compared to
exceptionally strong 2008 volumes. Demand suffered from the general economic
slowdown, lower commodity prices and continued uncertainty in credit availability
(particularly in Latin America, Eastern Europe, the CIS states and other Rest-of-World
areas). Industry demand for tractors was down in all regions, with the exception of Rest-
of-World. In North America, sales decreased for both under and over 100 hp models, with
over 100 hp models declining at a much lower rate. Combine harvester retail unit sales
increased in North America. However, these increases were more than offset by
decreases in the other regions.
CNH's extensive and upgraded product portfolio supported market share performance in
an increasingly competitive environment. In the tractor market, CNH gained share in FY 2009
North America in over 40 hp models. Share in Latin America and Western Europe
remained flat. Market share was eroded in Rest-of-World, where demand in fast growing
markets such as China is mainly satisfied by local, low-range products. In the global
market for combine harvesters, CNH share increased in Latin America, was stable in
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Rest-of-World and in Western Europe, decreased in North America (with gains in the
more profitable higher-end segment).
In 2009, worldwide construction equipment industry retail unit sales dropped 38%.
Industry sales of heavy construction equipment were down 30% and light construction
equipment fell 45%, with Rest-of-World declining less than other regions in both
segments due to demand in China.
CNH market share improved in Latin America for both light and heavy segments, while
North America was stable. Share declined for both segments in Rest-of-World (where
CNH has a limited presence) and Western Europe, in a highly competitive environment
based on aggressive destocking actions.
As a result of the continued weak trading conditions in the global construction equipment
market, CNH has undertaken a thorough review of the positioning of its construction
equipment brands, and implemented a series of actions to reduce operating costs and
strengthen the competitiveness of its product portfolio. Reorganization of the internal
management structure has been completed and the workforce reduced to reflect current
trading conditions.
CNH trading profit was 337 million for 2009, compared to 1,122 million for 2008. Cost
containment measures and positive pricing only partially offset the drastic volume declines
in the construction equipment market.
CNH had revenues of 2.4 billion for Q4 2009, down 22.0% over the same period in
2008. In US dollar terms, revenues were down 11.3%. Declines were experienced in both
the agricultural and construction equipment businesses and were driven by overall
industry declines and network destocking actions taken during the quarter. Improvement
in Latin America, for both the agricultural and construction equipment businesses, only
partially offset declines in the other regions. While revenues for North America were down
overall, combines and high horsepower tractors continued to perform strongly for the
quarter.
Trading profit was 99 million, down 142 million from Q4 2008 (241 million). Cost
containment measures only partially offset the volumes declines and less favourable mix.
2009 was an important year for the launch of new products by the CNH brands. FY 2009
Case IH Agriculture launched the new versions of the Maxxum, Puma and Magnum
tractors that cover the entire range between 100 hp and 225 hp. It released a basic model
sugar cane harvester, developed to mechanize this sector in Africa, India and China, as
well as the Austoft 8000 series, which offers a 35% increase in cutting power. In addition,
the Magnum and Farmall tractors (the latter equipped with continuously variable
14
transmission) were launched in the North American market and the Quantum N and V
specialty tractors in the Rest-of-World.
New Holland Agriculture launched the T7000 series tractors (167-225 hp) with
continuously variable "Auto Command" transmissions, a new armrest control console and
an ergonomic console. Developed for large-scale agricultural producers and contract
operators, the range has a new CVT transmission that optimizes engine performance and
operating costs. The brand also introduced the new Class 9 (CR9080) 500+ hp combine
in North America and Australia. In Latin America, the brand launched the 75 hp TT4030
standard tractor, ideal for small and mid-sized farms.
Case Construction introduced seven new B-series excavators with increased fuel
efficiency and lower noise levels. The company also added the new CX 130B "long
reach" model to its crawler excavator range, and the 650L crawler dozer, whose
technological features guarantee a significant increase in productivity.
New Holland Construction added several new features to its North American crawler
excavators to improve product applicability and safety, particularly for demolition
activities.
During 2009, CNH brands received numerous acknowledgements around the world. In
the United States, the American Society of Agricultural and Biological Engineers showed
recognition for the strong commitment to innovation demonstrated by New Holland
Agriculture and Case IH, awarding five and three AE50 awards, respectively. In Brazil,
New Holland Agriculture received the agricultural industry's most important award,
winning the Golden Trophy in the "Outstanding" category with the New Holland TL75 78
hp tractor. In Europe, the New Holland T7000 Auto Command tractor received the
"Tractor of the Year", "Golden Tractor for Design" and "Maschine des Jahres 2010"
(Machine of the Year 2010) awards in the medium-high power tractor category.
FY 2009
15
TRUCKS AND COMMERCIAL VEHICLES Trucks and Commercial Vehicles
Revenues & Trading profit/(loss) Full Year
( million) 2009 2008
Net revenues 7,183 10,894 For 2009, Iveco reported revenues of
% change -34.1 7.2 billion, down 34.1% year-over-year,
Trading profit 105 838
Change -733 with lower sales volumes attributable to the
Trading margin % 1.5 7.7 negative market trend, particularly in
Europe.
TRUCKS AND COMMERCIAL VEHICLES
Revenues & Trading profit/(loss) 4th Quarter Iveco delivered a total of 103,866 units,
down 45.9% over 2008. A total of 66,754
( million) 2009 2008
Net revenues 2,172 2,361 vehicles were delivered in Western Europe
% change -8.0 (-46.7%), with declines in all major markets:
Trading profit 77 187
Change -110 Italy (-30.7%), Germany (-43.3%), France
Trading margin % 3.5 7.9 (-45.9%), Spain (-60.3%) and the UK (-73.1%).
Deliveries were down 72.6% in Eastern
Europe, while the decline in Latin America was contained at 19.1%.
In Western Europe, the market for trucks and commercial vehicles (2.8 ton) contracted
34.5% over 2008, with demand down significantly in all segments: light vehicles (-31.6%),
medium vehicles (-33.1%) and heavy vehicles (-44.1%). Registrations fell sharply in all
major European markets: Spain (-51.7%), where the market had already experienced a
material contraction in 2008 and which experienced a further 66.7% fall for heavy, the UK
(-40.6%), Italy (-33.6%), where the heavy segment was halved (-50.5%), France (-29.8%)
and Germany (-28.5%).
Demand for trucks and commercial vehicles also slumped by 54.5% in Eastern Europe,
where the market for light vehicles contracted 44.6%, medium 56.6% and heavy 71.3%.
Iveco's market share in Western Europe ( 2.8 ton) stood at 9.2% (down 0.7 percentage
points vs. 2008) with declines in all segments. Share was down 0.5 percentage points in
the light segment, heavily influenced by the performance in France, but up in Italy and
Spain (+0.4 percentage points and +0.8 percentage points, respectively). Share for the
medium segment decreased 0.7 percentage points, notwithstanding share gains in Italy
and France. In the heavy segment, share declined 1.0 percentage point, attributable
entirely to an unfavourable market mix, which more than offset the positive performance FY 2009
in Italy (+0.6 percentage points), France (+0.4 percentage points) and Spain (+2.7
percentage points).
Notwithstanding the steep volume declines, Iveco delivered a trading profit of 105
million in 2009 (838 million in 2008), due to realignment of production levels and
16
rigorous cost containment measures, as well as margin support from the after-sales
activities, Latin America and special vehicles business.
For Q4 2009, Iveco had revenues of 2.2 billion, down 8% over the same period in 2008,
when the economic crisis had already impacted volumes. Iveco reported a 77 million
trading profit for the fourth quarter, compared to 187 million for Q4 2008.
In 2009, Iveco launched the EcoDaily, the latest evolution of an extremely successful
model, with enhancements to both look and comfort. The vehicle is now available with
four ecological engines: two diesel engines which meet the strict EEV (Enhanced
Environmentally-friendly Vehicle) standard, a bifuel CNG/gasoline engine and an electric
engine. Iveco Irisbus presented the Magelys HDH, a coach that belongs to an elite class
of sophisticated buses designed for the luxury tourist market in Europe. Meanwhile,
Beijing saw the presentation of the Genlyon, the new "heavyweight" from SAIC-Iveco
Hongyan Commercial Vehicles (SIH). In the latter part of the year, Iveco presented the
new Vertis medium-segment vehicle (9-13 tons) at the Fenatran Trade Show in São
Paulo. In Latin America, Iveco also presented an electric prototype of the Daily, the first
zero-emission light commercial vehicle produced in this region.
During the year, Iveco products received numerous awards in various parts of the world.
In the United Kingdom, the Daily CNG was named `Green Van of the Year 2009'. Iveco
won the international `Transport Innovation of the Year' award for Blue&Me Fleet, an
advanced telematic fleet management system. In Ireland, the Daily was named "Green
Commercial of the Year 2009" and in Brazil Iveco won the "Truck of the Year" award for
the 3rd year running with the medium-segment Tector. Similar recognition was received
in China, where the new heavy segment Genlyon was named "Truck of the Year" by a
leading Chinese trade journal.
FY 2009
17
COMPONENTS AND PRODUCTION SYSTEMS Components and
Net revenues Full Year Production Systems
( million) 2009 2008
FPT Powertrain 4,952 7,000
Technologies FPT Powertrain Technologies
% change -29.3
Components For 2009, FPT Powertrain Technologies
4,528 5,447
(Magneti Marelli)
% change -16.9 had revenues of 4,952 million, down
Metallurgical Products 578 837 29.3% over 2008 due to a decline in sales
(Teksid)
% change -30.9 volumes which was particularly pronounced
Production Systems 728 1,123
(Comau) for the Industrial & Marine product line.
% change -35.2 Sales to external customers and joint
Eliminations (459) (614)
Total 10,327 13,793 ventures accounted for 16% of the total
% change -25.1 (22% for 2008).
The Passenger & Commercial Vehicles
COMPONENTS AND PRODUCTION SYSTEMS
Trading profit/(loss) Full Year product line reported revenues of 3,372
( million) 2009 2008 million, a 7.6% decline over 2008, which was
FPT Powertrain (25) 166
Technologies contained by a recovery in many major car
Change -191 markets during the second half of 2009.
Components 25 174
(Magneti Marelli) Sales to Fiat Group companies accounted for
Change -149
Metallurgical Products 92% of revenues with the remainder
(12) 41
(Teksid)
Change -53 consisting principally of diesel engines sold to
Production Systems (28) 21 external customers. A total of 2,290,000
(Comau)
Change -49 engines (-2.7%) and 2,208,000 transmissions
Total (40) 402 (+9.4%) were sold during the year.
Change -442
Trading margin % (0.4) 2.9 Industrial & Marine reported revenues of
1,580 million, down 53% over 2008 due to
the sharp volume declines experienced. A
total of 268,000 engines (-50.9%) were sold, primarily to Iveco (38%), CNH (25%) and Sevel
(26%), the JV in light commercial vehicles. In addition, 53,000 transmissions (-50.2%) and
105,000 axles (-61.5%) were delivered.
FPT closed 2009 with a trading loss of 25 million, compared to a profit of 166 million for
2008. The decrease was principally the result of a contraction in volumes and more FY 2009
importantly, a less favourable sales mix. Significant efficiency gains achieved in overhead,
manufacturing and purchasing costs only partially offset those negative impacts.
18
COMPONENTS AND PRODUCTION SYSTEMS FPT's revenues for the fourth quarter of
Net revenues 4th Quarter 2009 were 1,342 million, up 3.6% over the
( million) 2009 2008 same quarter in 2008 when the economic
FPT Powertrain 1,342 1,295
Technologies crisis had already begun to have a significant
% change 3.6
Components effect. There was a significant difference in
1,280 1,146
(Magneti Marelli) performance between the two product lines:
% change 11.7
Metallurgical Products 172 155 revenues for Passenger & Commercial
(Teksid)
% change 11.0 Vehicles increased 37% to 911 million,
Production Systems 205 303
(Comau) while Industrial & Marine experienced a
% change -32.3 decrease of 31% to 439 million. Sales to
Eliminations (127) (145)
Total 2,872 2,754 external customers and joint ventures
% change 4.3 accounted for 16% of the total (22% for
2008).
COMPONENTS AND PRODUCTION SYSTEMS
Trading profit/(loss) 4th Quarter FPT reported a trading profit of 40 million
( million) 2009 2008 for Q4 2009, compared to 11 million for Q4
FPT Powertrain 40 11
Technologies 2008. The increase is attributable to the
Change 29 combined effect of cost reduction measures
Components 43 9
(Magneti Marelli) and slightly higher sales volumes.
Change 34
Metallurgical Products (2) 3 During 2009, FPT Powertrain Technologies
(Teksid)
Change -5 presented numerous new products. One of
Production Systems (4) 9
(Comau) the most important was the MultiAir system
Change -13 that offers direct control of the air intake and
Total 77 32
Change 45 combustion for gasoline engines. Recipient
Trading margin % 2.7 1.2 of the "Technobest 2009", "ADAC Gelber
Engel 2010" and "Engine Development
Team of the Year" (from Automotive Testing
Technology International) awards, this system generates 10% more power and 15% more
torque than a traditional engine of equivalent cubic capacity, while at the same time delivering
a 10% reduction in both fuel consumption and CO2 emissions. For diesel engines,
developments included the Euro 5 1.3 Small Diesel Engine (in both 75 hp and 95 hp
versions), complete with the innovative Common Rail MultiJet II injection system. The Sector
also released a bifuel CNG/gasoline engine for the Fiat Ducato 140 Natural Power and two FY 2009
new engines for the Alfa MiTo (the 120 hp, 1.4 Turbo gasoline and the 90 hp, 1.3 JTDM). In
September, production also commenced on a heavy duty Euro 5 version of the 107 kW F1C
engine (with variable geometry turbo) for the Ducato.
Four engines ranging in output from 106 hp to 170 hp were released for the new
EcoDaily. These engines meet the strict EEV (Enhanced Environmentally-friendly
19
Vehicle) standard and guarantee a 10% reduction in both fuel consumption and CO2
emissions. The range of FPT engines for the EcoDaily was further expanded to include a
bifuel engine (CNG/gasoline) that is also EEV compliant.
Other developments include launch of production for the Cursor (C87) diesel engines by
SAIC Fiat Powertrain Hongyan joint venture at its new site in Chongqing (China) and,
FPT's presentation of the 380 hp and 620 hp versions of the new C90 at the 2009 Genoa
International Boat Show. This engine expands the range of FPT marine engines for both
recreational and professional use.
For transmissions, the plant in Verrone (Piedmont) commenced production on the new
C635 family created for the medium segment vehicles (both gasoline and diesel) of FGA
and Chrysler.
Magneti Marelli
Magneti Marelli reported 2009 revenues of 4,528 million, a 16.9% reduction over 2008
(-14% on a comparable scope of operations) primarily attributable to the drop in volumes
experienced in the first half. The level of decline began to slow from July onward as
demand from automakers increased. The most significant decreases in sales volumes
were experienced in Europe (excluding Poland) and the US, while performance was
positive in China and stable in Brazil.
All business lines were impacted by the economic downturn. The overall drop in volumes
was most severe in the medium-large car segment (in which the Lighting business line is
the most active) and in light commercial vehicles (with negative consequences for the
Suspension Systems business line). By contrast, the Engine Control business line grew
in India, driven by the production of diesel control units, e China. There was strong sales
performance for the Exhaust Systems business line in Brazil (to both external customers
and Fiat).
For 2009, Magneti Marelli posted a trading profit of 25 million (174 million for 2008).
The positive effect of reductions in overheads and increased production and purchasing
efficiencies enabled the Sector to contain the impact of lower revenues. FY 2009
For Q4 2009, Magneti Marelli reported revenues of 1,280 million (+11.7% over Q4
2008). Trading profit was 43 million, an improvement over the 9 million figure for the
fourth quarter of 2008, which had already been significantly impacted by volume declines
attributable to the economic downturn.
20
During the year, Magneti Marelli completed development on the instrument panel and
LED tail lights for the Ferrari 458 Italia and instrument panel, mobile information system,
front lights and tail lights for the Maserati GranCabrio. It also designed and produced
instrument panels and LED tail lights for the Punto Evo, "intelligent" suspension systems
for the Lancia Delta and Alfa MiTo, latest generation integrated navigation systems for
many FGA products (such as the Alfa MiTo and Fiat Bravo), and an engine control unit
and exhaust system for the Alfa MiTo with 1.4 MultiAir. In addition, several new engine
control and lighting system components were developed and produced for other major
European automakers.
Teksid
For 2009, Teksid had revenues of 578 million, down 30.9% over the prior year
principally as a result of lower sales volumes. Volumes decreased 26.6% for the Cast
Iron business unit and 5.5% for the Aluminium business unit.
Teksid closed the year with a trading loss of 12 million, compared to a 41 million
trading profit for 2008, reflecting the significant contraction in volumes.
For Q4 2009, Teksid had revenues of 172 million, up 11% over the fourth quarter of
2008. The company reported a trading loss of 2 million, compared with a trading profit
of 3 million for the same period in 2008, mainly due to an unfavourable product mix.
Comau
Comau had revenues of 728 million for 2009. The 35.2% decrease over 2008 (-31% on
a constant scope of operations) was principally attributable to the Body Welding
operations.
Order intake was 0.7 billion, down 33% over 2008 mainly due to a decline in new
contract orders. Services benefited from growth in Mercosur in line with the redefinition of
the scope of activities, which did not however offset the contraction in orders in Europe.
At 31 December 2009, the order backlog totalled 478 million, a 9% decrease over the
figure at year-end 2008.
Comau reported a trading loss of 28 million for 2009, compared to a trading profit of FY 2009
21 million for 2008. This decrease was primarily attributable to lower business volumes
for the Body Welding and Die-cutting operations.
For Q4 2009, Comau had revenues of 205 million, down 32.3% year-over-year. Comau
reported a trading loss of 4 million compared with a trading profit of 9 million for the
fourth quarter of 2008.
21
Other Businesses
Other Businesses includes the contribution from the Group's publishing businesses,
service companies and holding companies.
For 2009, Other Businesses had revenues of 1,096 million, down 21.4% year-over-
year.
Other Businesses reported a trading loss of 63 million, including eliminations and
consolidation adjustments, compared to a 102 million loss for 2008.
Other Businesses had revenues of 296 million for Q4 2009, down 17.1% over the same
period for the prior year. For the fourth quarter, there was a trading loss of 22 million
compared with a trading profit of 1 million for Q4 2008.
FY 2009
22
Significant events
On 10 June 2009, Chrysler Group LLC and Fiat finalized an agreement for a global
strategic alliance and the new Chrysler became operational on the same date. The
agreement grants Chrysler access to Fiat's world-class technology, platforms and
powertrains for small and medium-sized cars, which will enable the US automaker to
expand its product offer, including through the addition of several low environmental
impact models. Chrysler will also have access to Fiat's international distribution
network. The alliance represents an important step toward positioning both Fiat and
Chrysler among the next generation of leaders of the global auto industry. As
consideration, Fiat received an initial equity interest of 20% in the newly-formed
Chrysler Group LLC, which could increase up to a total of 35% upon achievement of
specific pre-established targets. The agreement does not contemplate any cash
investment in Chrysler by Fiat or commitment to fund Chrysler in the future. Fiat will
also have the right to acquire a majority interest in Chrysler once all government loans
have been fully repaid. The alliance is expected to bring enormous benefits to both
companies by giving them the critical mass necessary to compete on a global level.
Fiat will also be able to expand its geographical footprint by leveraging new market
opportunities such as a return to the US market and introduction of new models in
Europe. In addition, the presence and experience of Fiat in the smaller car segments
combined with that of Chrysler in the medium and larger segments will enable the
Group to offer a full product range.
Chrysler's strategic business plan, presented at the beginning of November 2009,
projects the launch of 21 new models over the next five years and sales volumes
increasing to 2.8 million cars in 2014 (40% higher than in 2008 and more than double
2009 volumes). Approximately 60% of those vehicles are to be based on Fiat
platforms. By 2014, Chrysler expects to achieve annual revenues of approximately
USD 68 billion and operating income of USD 5 billion, with its current debt level halved
and loans from the American and Canadian governments fully repaid.
At the beginning of July, Fiat and Guangzhou Automobile Group Co., Ltd. (GAC Group)
signed a framework agreement for the establishment of a 50/50 joint venture to
produce cars and engines for the Chinese market. The agreement calls for the FY 2009
construction of a new plant with an expected total investment by the joint venture of
more than 400 million. Upon completion of the first phase of development, the plant
will have a production capacity of 140,000 cars and 220,000 engines per year. There is
an option to subsequently increase capacity to 250,000 cars and 300,000 engines per
year. Production is scheduled to commence in the second half of 2011.
23
At the beginning of October, CNH and KAMAZ (the leading heavy truck manufacturer
in Russia and one of the largest globally) signed a letter of intent to form an industrial
and commercial alliance that will further strengthen CNH's leading position in Russia's
agricultural and construction equipment sectors. Under the agreement, the two
companies will set up an industrial joint venture whose initial objective will be the local
production of CNH agricultural and construction equipment for distribution in Russia.
Production is scheduled to commence in 2010. The two companies will also integrate
their respective sales networks that will distribute the full range of CNH products (both
locally-produced and imported) in the Russian Federation.
In September, Fiat entered the Dow Jones Sustainability World and Dow Jones
Sustainability STOXX Indexes - recognition of the fact that sustainability forms an
integral, daily part of the Group's way of doing business. The Company received a
score of 90/100 compared with an average of 72/100 for the sector. The DJSI World
and DJSI STOXX, two of the most prestigious equity indexes, only admit companies
that are demonstrated leaders in terms of economic as well as social and
environmental performance.
On December 22, Chief Executive Sergio Marchionne met in Rome with
representatives of the Italian government and unions to discuss Fiat's activities in Italy.
The meeting focused particularly on Fiat Group Automobiles, as well as on its alliance
with Chrysler.
FY 2009
24
2010 Outlook
After a particularly difficult 2009, with uneven trading conditions across the Group's
international scope of operations, 2010 is positioning itself as a year of transition and
stabilization.
We expect all of our sectors to improve performance over the prior year, with the
exception of the Automobiles business the performance of which will depend on the
continued availability of reliable eco-incentives programs to underpin demand in
Western Europe.
Our forecasts include a continuation of the rigorous cost containment action initiated as
early as the latter part of 2008, and which were implemented vigorously throughout
2009.
The capital expenditures programs which formed part of the 2007-2010 industrial plan
outlined to the financial community in November 2006 underwent a severe contraction
in 2009, in response to the uncertainty of the demand function for our various
businesses and the tightening of credit markets. This contraction is expected to ease in
2010, with the resumption of a normalized level of capital commitments across all
sectors, yielding a 30% to 35% rise in expenditures over 2009.
Targets for the year are therefore as follows:
· Revenues in the range of 52 to 53 billion, up between 3% and 6%
· Trading profit of approximately 1.5 billion
· Positive net income of 200 to 300 million
· Net debt levels below 5 billion.
These targets are subject to continued availability of eco-incentives in the European
automotive market, excluding Germany for which we have assumed the non-renewal of
the 2009 incentive scheme.
Were these incentives not to be available in 2010, European demand for automobiles
would be negatively impacted. In Italy alone volumes would decrease by approximately
20% and would impact all car producers, more importantly those particularly active in FY 2009
the A and B segments, and Fiat in particular which holds roughly a 30% share.
In such a case, revenues would be 2.5 billion lower, trading profit for both
Automobiles and Components would drop by 350-400 million. This shortfall in profits
would impact net income on a 100% basis due to the unavailability of tax relief, and
would balloon debt disproportionately, pushing overall levels above the 5 billion mark.
25
Even in these circumstances, Fiat would be able to post a trading profit in excess of
1 billion, and would have more than adequate financial resources to transition to what
is expected to be a normalized trading environment in 2011 and later years.
If the eco-incentives schemes are extended into 2010, the Automobiles and
Components sectors are expected to improve performance over 2009.
While working on the achievement of our objectives, the Fiat Group will continue to
implement its strategy of targeted alliances in order to optimize capital commitments
and reduce risks.
The Group intends to host an Investor Day in Turin on April 21, 2010.
---
The managers responsible for preparing the Company's financial reports, Alessandro Baldi and Maurizio
Francescatti, declare, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the
accounting information contained in this press release corresponds to the results documented in the books,
accounting and other records of the company.
This press release, and in particular the section entitled "2010 Outlook", contains forward-looking statements. These statements
are based on the Group's current expectations and projections about future events and, by their nature, are subject to inherent
risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future,
and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such
statements as a result of a variety of factors, including: continued volatility and deterioration of capital and financial markets,
changes in commodity prices, changes in general economic conditions, economic growth and other changes in business
conditions, changes in government regulation (in each case, in Italy or abroad), and many other factors, most of which are
outside of the Group's control.
Turin, 25 January 2010
Today, at 4:00 p.m. CET, Group management will hold a conference call to present the 2009 fourth quarter and
full year results to financial analysts and institutional investors. The call can be followed live and a recording will
be available later on the Group's website: www.fiatgroup.com
FY 2009
26
Consolidated Income Statement
Unaudited
4th Quarter 4th Quarter.
( millions) 2009 2008 (*) 2009 2008 (*)
Net revenues 50,102 59,564 13,601 13,133
Trading profit/(loss) 1,058 3,362 488 663
Gains (losses) on the disposal of investments 4 20 2 17
Restructuring costs 312 165 147 165
Other unusual income (expenses) (391) (245) (280) (259)
Operating profit/(loss) 359 2,972 63 256
Financial income (expenses) (753) (947) (218) (345)
Result from investments 27 162 36 10
Profit/(loss) before taxes (367) 2,187 (119) (79)
Income taxes 481 466 164 (259)
Profit/(loss) from continuing operations (848) 1,721 (283) 180
Profit/(loss) from discontinued operations - - - -
Profit/(loss) for the period (848) 1,721 (283) 180
Profit/(loss) for the period attributable to:
Owners of the parent (838) 1,612 (281) 163
Non-controlling interests (10) 109 (2) 17
(*) Following adoption of the improvement to IAS 16 in 2009, net revenues and trading costs for Q4 2008 have been increased by 41 million. Similarly,
for full-year 2008 net revenues and the trading costs have been increased by 184 million. This restatement had no effect on trading or net profit.
Change in Net Industrial Debt
Unaudited
( million) 2009 2008 (*)
Net industrial debt at beginning of the year (5,949) 355
- Net profit/(loss) (848) 1,721
- Amortisation and depreciation (net of vehicles sold under buy-back commitments or leased) 2,667 2,802
- Change in provisions for risks and charges and similar 118 (769)
Cash from/(used in) operating activities during the year before change in working capital 1,937 3,754
- Change in working capital 2,564 (3,604)
Cash from/(used in) operating activities 4,501 150
- Investments in property, plant and equipment (net of vehicles sold under buy-back commitments)
and intangible assets (3,382) (4,973)
Net cash from/(used in) operating activities, net of capital expenditures 1,119 (4,823)
- Change in consolidation scope and other changes 525 (942)
Net industrial cash flow 1,644 (5,765)
- Capital increases, (purchase)/disposal of own shares and dividends (20) (770)
- Currency translation differences (93) 231
Change in net industrial debt 1,531 (6,304)
Net industrial debt at end of the year (4,418) (5,949)
(*) Following adoption of the improvement to IAS 16 in 2009, the previously reported amounts for "Cash used in operating activities" and "Investments in
property, plant and equipment (net of vehicles sold under buy-back commitments) and intangible assets" were reduced by 6 million and 7 million,
respectively, and "Changes in consolidation scope and other changes" was increased by 1 million.
Translation of financial statements denominated in a currency other
than the euros
The principal exchange rates used to translate into euros the financial statements prepared in currencies other than the euros were as
follows:
Average 2009 At 31 December 2009 Average 2008 At 31 December 2008
US dollar 1.395 1.441 1.471 1.392
Pound sterling 0.891 0.888 0.796 0.953
Swiss franc 1.510 1.484 1.587 1.485
Polish zloty 4.328 4.105 3.512 4.154
Brazilian real 2.767 2.511 2.674 3.244
Argentine peso 5.201 5.473 4.679 4.800
27
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