Chrysler 1999 Annual Report Download - page 49

Download and view the complete annual report

Please find page 49 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

48
GROWTH STRATEGIES
During 1999, the Italian rolling stock market was characterized
by diverging trends. While investments by the Italian State
Railways were stagnant, sales of urban transport systems
remained relatively healthy.
Outside Italy, demand was flat in the Sector’s target markets.
Against this background, the Fiat Ferroviaria received orders
for 14 additional low-rise trams from ATAC, in Rome. It was
also asked to supply the electrical equipment for 11 trains
used on the MM2 and MM3 lines of the Milan subway system.
Toward the end of the year, it was awarded a contract for
the supply of 15 trams to the municipality of Messina, and
is currently participating in a call for tenders issued by the
municipal transit agency (ATM) of Turin for the supply of
100 trams.
The Sector’s order portfolio amounted to 1,288 million euros
as of December 31, 1999 (1,599 million euros at the end of
1998).
RESULTS FOR THE YEAR
Revenues totaled 375 million euros in 1999, slightly less than
in the previous fiscal year.
Operating income was 13 million euros (3.5 % of revenues),
down from 18 million euros (4.6% of revenues) in 1998. This
decline was due primarily to the impact of orders booked
under extremely competitive conditions.
The Sector reported net income of 3 million euros, compared
with a loss of 1 million euros in 1998, reflecting lower
extraordinary expenses attributable to the implementation of
the new accounting principle on deferred taxes. The Sector’s
interest in net income amounted to 1 million euros (loss of 2
million euros in 1998). Cash flow was 18 million euros (15
million euros a year earlier).
The return on average net invested capital was significantly
higher than the target level needed to create value.
ROLLING STOCK AND RAILWAY
SYSTEMS — FIAT FERROVIARIA
Highlights
(in millions of euros) 1999 1998 1997
Net revenues 375 389 384
Operating income 13 18 26
As a % of revenues 3.5 4.6 6.7
Income (loss) before
minority interest 3(1) 14
Cash flow 18 15 30
Capital expenditures 11 12 14
Research and development 99 9
Net invested capital 29 94 90
Number of employees 2,109 2,294 2,401