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Report on Operations – Analysis of the Financial Position and Operating Results of the Fiat Group and Fiat S.p.A. 23
Net revenues
The Group’s net revenues, including changes in contract work
in progress, totaled 48,123 million euros in 1999, 44,094
million euros of which are attributable to the Group’s Industrial
Activities (+3,3%), while 4,084 million euros were generated
by the Insurance Activities (+29.4%). Overall, revenues were
up 5.1% over 1998. On a comparable basis, excluding the
impact of changes in the scope of consolidation, the revenue
gain is about 1%.
The results generated by Case, which New Holland acquired
last November, will be consolidated for the first time in the
2000 fiscal year. Had Case’s sales been consolidated for the
full year on a proforma basis, the Group’s revenues would
have increased to about 53,000 million euros.
An analysis of revenues by operating Sector is provided below:
❚Fiat Auto reported consolidated revenues of 24,101 million
euros, or 758 million euros less (-3%) than in 1998, chiefly
as a result of lower sales in the Mercosur countries and the
devaluation of the Brazilian real.
The Sector shipped a total of 2,328,000 vehicles, compared
with 2,397,000 the previous year. Weak sales in South
America account for most of this 2.9% decline. Volumes
were up slightly in Italy (+0.4%), where customers purchased
955,000 Fiat Auto vehicles. Sales held steady in Western
Europe and showed good growth in Poland.
❚At Iveco revenues totaled 7,387 million euros (+11.1%).
The gain of 738 million euros over 1998 reflects an expansion
in unit sales, especially in Europe where the Bus operations
did particularly well, and the consolidation of Naveco (China).
A positive contribution was also provided by the vehicle
financing and leasing operations. On a comparable
consolidation basis, sales were up 4.3%.
❚Stated in U.S. dollars, the Sector‘s reporting currency,
CNH‘s revenues decreased 2.2% to $5,589 million, which
is equivalent to 5,246 million euros. The figure in euros
Consolidated Revenues
(in millions of euros)
48,123
45,769
46,257
1997 1998 1999
12/31/99 12/31/98
Industrial (*) Insurance Industrial (*) Insurance
(in millions of euros) Activities Activities Consolidated Activities Activities Consolidated
Net revenues 44,094 4,084 48,123 42,667 3,155 45,769
Cost of goods sold 36,848 4,012 40,805 35,454 3,119 38,520
Gross operating result 7,246 72 7,318 7,213 36 7,249
Gross operating result/Net revenues 16.4% 1.8% 15.2% 16.9% 1.1% 15.8%
Overhead 4,835 249 5,084 4,784 247 5,031
Overhead/Net revenues 11.0% 6.1% 10.6% 11.2% 7.8% 11.0%
Research and development 1,406 – 1,406 1,264 – 1,264
Operating income (expenses) (155)115 (40) (219) 11 (208)
Operating income 850 (62)788 946 (200) 746
ROS 1.9% (1.5%)1.6% 2.2% (6.3%) 1.6%
Investment income (**) 194 171 361 168 120 286
Financial income (expenses) (507) 49 (458) (112) 233 121
Extraordinary income (expenses) 229 104 333 293 (4) 289
Income before taxes 766 262 1,024 1,295 149 1,442
Income taxes 460 88 518 480 46 526
Income before minority interest 306 174 506 815 103 916
Fiat interest in net income 201 152 353 561 60 621
(*) It includes the Toro Assicurazioni Group, Augusta Assicurazioni S.p.A. and Essex & General Insurance Ltd.
(**) It includes investment income, as well as writedowns and upward adjustments on investments in subsidiaries and affiliates valued by the equity method.