Fiat Group’s results for the first half of 2001 have been released:

During the first half of the year, the Fiat Group made further progress towards the achievement of its full year objectives of increasing profitability and reducing debt levels.
Consolidated revenues increased to more than 30,500 million Euros – 2.5 per cent more than last year.
Consolidated operating income improved to 528 million Euros, up 11.2 per cent from the 475 million Euros earned in the first six months of 2000.
The Group’s interest in net income rose to 383 million Euros, compared with 141 million Euros in 2000.
Net gains exceeded those earned in 2000 by about 193 million Euros.
At 30 June 2001, the net financial position showed the Group’s debt has reduced by 1 billion Euros since 2000.
 

FIAT AUTO
The European market was down by 1.8 per cent for the first half of 2001, but Fiat Auto’s market share remained at 10.3 per cent, while the Brazilian market enjoyed sustained growth.
Fiat Auto’s profitability was lower than last year, but improved compared with the first half of 2001, due to sales incentive programmes.
A positive contribution also came from manufacturing efficiencies generated by the industrial alliance with General Motors. These synergies, at around 100 million Euros for the first half of 2001, are in line with targets.
At the end of June, Fiat Auto also contributed engine and transmission operations to the joint venture, Fiat-GM Powertrain.
 

CNH GLOBAL
Demand for agricultural equipment declined in Western Europe and improved in North and Latin America, and CNH Global took advantage of the market to increase sales, but reported lower sales to Europe. But shipments of heavy-duty machines with higher profit margins were better than average for the market.
Operating margin increased to 4 per cent of revenues, up from 1.7 per cent in the first half of 2000.
This improvement reflects the restructuring of operations of Case and New Holland – reduction of costs, streamlining the supplier base, reduction of manufacturing facilities and increasing product specialisation.
IVECO
The European market for commercial vehicles showed uneven trends, with the light commercial vehicle segment remaining robust, while demand for heavy vehicles declined, particularly in Northern Europe.
The sector experienced continued price pressure in the market, and sales were slightly down on last year.
 

OTHER SECTORS
Teksid and Comau were affected by unfavourable economic conditions and the decline of the US auto market.
The performance of Magneti Marelli reflected the divestiture of operations carried out this year.
FiatAvio and Toro Assicurazioni provided a significant contribution to the operating income.
FiatAvio posted returns of around 12 per cent, and continued to benefit from a large order portfolio, industrial restructuring and a strong US dollar.
The operating income of Toro Assicurazioni reflected steady expansion in business volume and the success of efforts to contain costs.
A key development of Business Solutions was the creation of GlobalValue, a joint venture with IBM.
The transfer of Business Solutions’ IT operations generated a gain of more than 140 million Euros.
Fiat Group management has set two goals for 2001 – achieving Group operating income of 1.1 billion Euros and reducing net consolidated debt to 3.5 billion euros.