2009 SECOND QUARTER RESULTS
IN AN EXTREMELY DIFFICULT TRADING ENVIRONMENT, FIAT GROUP CLOSES QUARTER WITH €310 MILLION TRADING PROFIT (2.4% TRADING MARGIN).
• Revenues of €13.2 billion were down 22.5% over Q2 2008, with volume declines experienced in all businesses.
• Trading profit came in at €310 million (Q2 2008: €1,131 million), a result of aggressive cost containment and
effective management of operating leverage.
• Pre-tax loss of €16 million includes €152 million one-off charges (€132 million relating to restructuring) and €161
million in net financial expense.
• The Group reported a net loss for the period of €179 million (€646 million profit for Q2 2008), at nearly break-even
levels excluding unusual items.
• Net industrial debt decreased to €5.7 billion (€6.6 billion at the end of Q1) largely driven by destocking actions
• Liquidity increased to €6.4 billion (€5.1 billion at the end of Q1).
• Group confirms 2009 guidance, with trading profit in excess of €1 billion and net debt levels below €5 billion
The Group delivered results in the first semester of 2009 in line with its internal
expectations, with the first quarter being characterized by erratic declines in demand, and
the second beginning to show the full effect of the restructuring and cost containment
efforts started in the latter part of 2008.
We expect an improvement in the remainder of the year, as trading conditions stabilize
and improve for most of our businesses. We confirm our view that the truck market and
the construction equipment business will continue to suffer depressed demand for the
major portion of the year, with signs of recovery only visible in the 4th quarter.
On the basis of performance to-date and barring unforeseen systemic shifts in demand,
the Group reaffirms its view that the following conditions will materialize for the whole of
• Global demand for our products will decline ~20% compared to 2008.
• Group trading profit will be in excess of €1 billion.
• Restructuring charges of ~€300 million and other unusual costs ~€200 million.
• The net result for the Group will be in excess of €100 million.
• Group net industrial cash flow will be in excess of €1 billion, with net industrial
debt levels below the €5 billion mark.
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
With thanks to Fiat Group Press