Chrysler 2005 Annual Report Download - page 65

64 Reporton Operations Iveco
01 Report on Operations
Operating Performance
In 2005, Western European demand for commercial vehicles (GVW
≥2.8 tons) increased to 1,109,700 units, or 5.2% more than in 2004.
The largest gains occurred in France (+10.8%) and Spain (+9.6%),
followed by more modest increases in the United Kingdom (+3.7%)
and Germany(+2.9%). In Italy, demand was down 1.7%.
New registrations of light commercial vehicles (GVW between 2.8
and 6 tons) grew to 779,800 units, for an increase of 4.3% compared
with 2004. Demand was particularly strong in Spain (+9.4%) and
France (+8.2%), expanded more moderately in Germany (+1.5%)
and the United Kingdom (+3.8%), and contracted in Italy (-2.1%).
Demand for medium vehicles (GVW between 6.1 and 15.9 tons)
also improved, rising to 79,100 units (+2.9% compared with 2004).
All of the European markets benefited from the increase in demand,
especiallyGermany (+8.7%) and Spain (+9.3%).The exceptions
were the United Kingdom, where new registrations were flat, and
Italy, where shipments were down (-6.6% with respect to 2004).
New registrations of heavy vehicles (GVW ≥16 tons) grew to
250,800 units, or 8.6% more than in 2004.The largest gains were
recorded in Spain (+10.0%), France (+21.6%), the United Kingdom
(+5.0%) and Germany (+4.1%). Demand held relatively steady in
Italy (+1.1%) but was up a healthy 8.9% in the remaining countries
of Western Europe.
In Western Europe, the bus market expanded to 34,800 units, or
6.6% more than in 2004.This improvement is the result of a positive
Commercial Vehicles
Iveco
Highlights
(in millions of euros) 2005 2004
Net revenues 9,489 9,047
Trading profit 415 371
Operating result (*) 289 347
Investments in tangible
and intangible assets (**) 444 330
-of which capitalised R&D costs 175 114
Total R&D expenses (***) 277 243
Employees at year-end (number) 32,373 31,037
(*) Including restructuring costs and unusual income (expenses).
(**) Net of vehicles sold with buy-back commitments.
(***) Including R&D capitalised and charged to operations.
Commercial Vehicles Market (GVW ≥2,8 tons)
(in thousands of units) 2005 2004 %change
Heavy 250.8 230.8 8.6
Medium 79.1 76.8 2.9
Light 779.8 747.3 4.3
Western Europe 1,109.7 1,054.9 5.2
Commercial Vehicles Market (GVW ≥2,8 tons)
(in thousands of units) 2005 2004 % change
France 194.0 175.0 10.8
Germany 238.1 231.3 2.9
United Kingdom 196.6 189.6 3.7
Italy 122.6 124.7 -1.7
Spain 118.5 108.1 9.6
Other Western
European Countries 239.9 226.2 6.0
Western Europe 1,109.7 1,054.9 5.2
trend in France (+11.9%), the United Kingdom (+23.3%) and Spain
(+15.9%), and steady demand in Germany and Italy.
Iveco’s share of the Western European market for vehicles with a curb
weight of 2.8 tons or more settled at 10.9% (0.2 percentage points less
than in 2004), due mainlyto weakness in Italy, where the Sector’s share
went from 29.8% in 2004 to 29.4% in 2005. In the light-vehicle segment
(Daily), Iveco’s market share held steady at 9.3%, with minor changes in
the different markets. In the medium-vehicle segment (Eurocargo), the
Sectors’ market share decreased to 26.3%, or 1.7 percentage points less
than in 2004. Nevertheless, Iveco was able to maintain and consolidate
its rank as the second largest producer. At 11.1%, Iveco’s share of the
heavy-vehicle segment was about the same as in 2004 (11.3%).
The Irisbus Group’s penetration of the Western European market
(20.4% in 2005) declined by 1 percentage point compared with 2004.
The Sector’smarket share contracted in Italy (-3.3 percentage points)
and France (-3.0 percentage points), where Iveco still controls a
significant portion of the market (about 45% to 50%), decreased by a
smaller percentage in Spain (-1.7 percentage points) and held relatively
steady in the United Kingdom (-0.4 percentage points) and Germany
(+0.6 percentage points).