Strong 2007 first quarter results from Fiat

On revenues of €13.7 billion in the first quarter of 2007, up 8.9% from 2006, Fiat Group posted its ninth consecutive quarterly year-over-year improvement in trading profit (IFRS based), up 84% to €595 million.

All major businesses contributed to the improvement: the Automobiles businesses result more than quadrupled to €222 million (€173 million better than 2006), Iveco (trucks) more than doubled its performance, up €80 million to €150 million, while the Agricultural and Construction Equipment business improved €52 million to €189 million (+50% in US dollar terms).

Net income at €376 million is €225 million or 149% better than the previous year. Net industrial debt dipped below €1.3 billion, a €0.5 billion improvement over December 2006 levels. Group targets are confirmed for 2007, with year-end net industrial debt now foreseen below €1 billion.

Automobiles

The Automobiles businesses posted revenues of €6.8 billion in Q1 2007, up 11.2% from the same period in 2006 due to the sharp increase in sales volumes. Fiat

Group Automobiles, which adopted its new name on 1 February, 2007, and comprises the Fiat, Alfa Romeo, Lancia and Fiat Commercial Vehicles (Professional) brands, had revenues of €6.3 billion, up 10.2% from Q1 2006.

With 541,200 units sold, its highest level since 2001, volumes of Fiat Group Automobiles increased by 11.6%, although Q1 2006 already reflected the impact of the launch of the Grande Punto, while Q1 2007 does not yet reflect the market impact of the introduction of the new C-segment Fiat Bravo. Approximately 355,600 units were sold in Western Europe, an increase of 6.7%. Fiat Panda retained its leadership position in the A-segment and Punto was one of the bestselling models in B-segment. Orders for the Fiat Bravo, which went on sale in Italy in February, and in March in France, have topped 29,000 units, with 11,000 units sold in the quarter.

The Western European automobile market contracted by 1.1% from Q1 2006. This performance was impacted by a sharp contraction in German demand (-10%), and to a lesser extent in France (-1.4%) and Spain (-0.7%), offset by growth in Italy (+4.1%) and the UK (+2.9%). Demand rose by 24.5% in Poland and 17.4% in Brazil.

Deliveries of Fiat Group Automobiles remained at high levels, outperforming the markets in all key European countries. Volumes rose by 8.2% in Italy, 19.4% in Spain, 13.4% in France, and 8.3% in Great Britain.

The market share of Fiat Group Automobiles continued to grow, reaching 31.8% in Italy (+1.2 percentage points) and 8.5% in Western Europe (+0.5 percentage point), where it reacquired fifth position in the rankings of European car producers, a position it last held in 2001.

Deliveries rose by 25.1% in Brazil compared with Q1 2006, reaching a market share of 24.8% (+1.1 percentage points). Deliveries in Poland increased by 1.4%, and market share rose by 0.6 percentage points to 10.9%.

A total of 94,100 light commercial vehicles were delivered, an increase of 28.5% from Q1 2006. In Western Europe, while demand rose by 3.9%, Fiat Light Commercial Vehicles deliveries increased 21.3% to 59,400 units. The Group’s LCV market share was 10.6% in Western Europe (+0.6 percentage point) and 42.0% in Italy, unchanged with respect Q1 2006.

Fiat Group Automobiles had a trading profit of €192 million in Q1 2007, a significant improvement from the €57 million reported in Q1 2006. The increase is mainly attributable to higher volumes, a more favourable product mix following the introduction of new models, more efficient absorption of fixed production costs, net of higher advertising costs for the launch of new models, and increased R&D expenses reflecting recent investments in the rejuvenation of the product portfolio.

In Q1 2007, Fiat strengthened its presence in the most important market segment (C) in Europe with the launch of the new Bravo, which has received a good level of acceptance. The Bravo is the first model to sport the Fiat brand’s new logo, and goes on sale in the UK this summer.