Chrysler 1999 Annual Report Download - page 48

Download and view the complete annual report

Please find page 48 of the 1999 Chrysler annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 63

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63

47
Report on Operations – Aviation
GROWTH STRATEGIES
The Aircraft Business Unit continued to streamline its
manufacturing operations, creating excellence product
centers.
Military projects included the execution of contracts for the
supply of the Auxiliary Power Unit and the ancillary systems
unit for the aircraft being developed under the Eurofighter
program. In addition, the Sector entered into an agreement
for the establishment of a consortium with Snecma Moteurs,
MTU Muenchen and ITP, a Spanish company, that will
develop, certify and manufacture the M138 engine for the
A400 European transport aircraft (formerly known as FLA).
In the commercial aircraft segment, the Sector signed a
memorandum of understanding with General Electric covering
the development of a new version of the GE90 engine, which
will power a new Boeing 777X aircraft.
In helicopters, FiatAvio completed the certification of the
T700-T64 engine, which will be installed in the EH101
helicopter.
During 1999, the Sector established an Engine Overhaul
Business Unit, which will help it strengthen its position in
the field of maintenance services.
The Space Business Unit continued its successful involvement
in the Ariane program, producing the boosters and separation
engines for the Ariane 4 launcher, as well as the boosters and
oxygen turbopump for the Ariane 5 launcher.
Ariane 5 completed successfully its first commercial flight
(504) putting in orbit ESA’s XMM satellite, which incorporates
a propulsion subsystem manufactured by FiatAvio.
In addition, a new contract valued at 140 million euros for
the production of engines for the Ariane 5 was executed
in December.
RESULTS FOR THE YEAR
In 1999, the Sector had revenues of 1,361 million euros,
about the same as in the previous fiscal year.
Operating income increased in 1999 reaching 109 million
euros (8% of revenues), compared with 60 million euros
(4.4% of revenues) in 1998, despite higher operating costs.
Net income declined to 61 million euros (79 million euros in
1998) owing to a less favorable balance of financial income
and expenses and lower deferred tax assets than in the
previous fiscal year.
Cash flow decreased to 145 million euros in 1999, compared
with 167 million euros in the previous fiscal year.
The higher level of operating income enabled the Sector to
create almost twice as much value than in the previous fiscal
year.
AVIATION — FIATAVIO
Highlights
(in millions of euros) 1999 1998 1997
Net revenues 1,361 1,361 1,263
Operating income 109 60 56
As a % of revenues 8.0 4.4 4.5
Income before minority interest 61 79 18
Cash flow 145 167 112
Capital expenditures 42 36 37
Research and development 128 99 119
Net invested capital 163 159 244
Number of employees 5,590 5,962 6,505