Chrysler 1999 Annual Report Download - page 47

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46
GROWTH STRATEGIES
The acquisitions completed in 1999 with the goal of
supporting the growth strategy pursued by the Production
Systems Sector in its core business segments (bodywork
and maintenance services) include the following:
❚The most important transaction was the acquisition by Fiat
S.p.A. of a controlling interest in the Pico (Progressive
Tools & Industries Co.) Group, a leading U.S. producer
of bodywork production systems with a significant market
presence in Great Britain, Mexico and South Africa.
❚In France, Comau purchased a majority interest (51%) in
Renault Automation and acquired the bodywork systems
of Sciaky S.A.
The Pico, Renault Automation and Sciaky acquisitions
reinforced at the structural level the Sector’s operations in
its principal markets and strengthened its relationship with
all major automotive manufacturers.
Comau Service, a business unit established in 1998 to provide
specialized maintenance services for automotive production
and facilities, became operational in Italy in 1999.
Comau Service, which will continue to handle the insourcing
of maintenance services for production facilities of the Fiat
Group throughout the world, also entered into agreements
with several large carmakers.
RESULTS FOR THE YEAR
Owing in part to the transactions discussed above and
including Pico’s contribution, the Sector achieved the following
results in 1999:
❚The year-end net order portfolio amounted to 1,762 million
euros, compared with 576 million euros at December 31,
1998.
❚Revenues rose to 1,693 million euros, double the amount
booked in the previous fiscal year.
❚Operating income totaled 43 million euros (2.5% of
revenues). In 1998, Comau without Pico reported
an operating loss of 1 million euros.
The year ended with a net loss of 8 million euros, compared
with a net loss of 6 million euros in 1998. The Sector’s
interest in the 1999 result was a loss of 10 million euros (loss
of 6.7 million euros in 1998).
Cash flow reached 30 million euros, up from 12 million euros
in 1998.
On an aggregate basis, the performance of Comau and Pico
resulted in the creation of value in 1999.
PRODUCTION SYSTEMS — COMAU/PICO
Highlights
(in millions of euros) 1999 1998 1997
Net revenues 1,693 843 841
Operating income (loss) 43 (1) 27
As a % of revenues 2.5 (0.1) 3.3
Income (loss) before
minority interest (8) (6) 12
Cash flow 30 12 29
Capital expenditures 26 14 16
Research and development 20 14 17
Net invested capital 485 165 179
Number of employees 16,943 7,103 4,809