Chrysler 2001 Annual Report Download - page 48

48
1999
(in millions of euros) 2001 2000 Proforma 1999
Net revenues 10,777 10,770 9,952 5,246
Operating income 209 45 95 371
As a % of revenues 1.9 0.4 1.0 7.1
Net income (loss) before
minority interest (291) (754) (170) 216
Cash flow 262 (192) 364 333
Capital expenditures 615 447 318 178
Research and development 341 366 335 158
Net invested capital 6,597 6,932 6,184 5,777
Number of employees 28,127 31,033 34,963 19,049
INTRODUCTION
Results of CNH Global include those of Case and Flexi-Coil,
which were consolidated as of January 1, 2000 and
January 4, 2000, respectively. These changes in the scope of
consolidation greatly affected the comparability of the periods
examined. For this reason, the most significant financial data
for 1999 were presented on proforma basis.
SALES PERFORMANCE
The demand for agricultural equipment declined on a global
basis during 2001, particularly in Western Europe. Demand
for agricultural equipment improved from 2000 in North
America, where the gains were better than expected, and
in Latin America, while in the other markets of the world
the industry trend was negative.
Sales trends for CNH products were generally positive
across the more than 160 markets the company serves.
In North America, the combined sales of the company’s
New Holland and Case IH brands outpaced the industry
in nearly every segment of the market, increasing the CNH
share of the market for tractors and combine harvesters,
even though many of the divested products have not yet
been replaced. On an overall basis, market share in Europe
declined slightly, due partly to divestitures and partly to
lower industry sales in key markets such as Italy.
During 2001, the market for construction equipment declined
from 2000 levels, reflecting the general level of economic
activity in most countries. The North American market showed
the greatest decline, followed by Europe and Latin America.
In this very difficult environment, CNH maintained its overall
position in the market, with the slight decline in share being
due mainly to the required divestitures.
GROWTH STRATEGIES
CNH has completed substantially all of the divestitures
required by regulatory agencies in North America and Europe.
In total, CNH has divested six facilities, all in accordance
with conditions set by regulatory agencies for approval of
the November 1999 merger of Case Corporation and New
Holland NV. Completion of these divestitures, which brought
uncertainty to the marketplace, and the implementation of
the company’s integration and industrial streamlining plan
have allowed CNH Global to begin to take full advantage
of the synergies between Case and New Holland.
The main areas targeted by the company’s integration
plan are: purchasing and logistics; selling, general and
administrative; and industrial restructuring.
The industrial restructuring blueprint for the combined Case
and New Holland organization, calls for a significant reduction
Revenues by geographical
region of destination
Employees by geographical
region
050 100%
Rest of the world
Rest of Europe
Italy
Paolo Monferino,
CNH Global’s Chief Executive Officer.
Fiat has been producing farm tractors and construction
equipment since the early decades of the past century. The
focus on international markets, which has characterized this
Group Sector from the start, gathered renewed momentum
with the acquisitions of Allis Chalmers in 1973, Ford New
Holland in 1991 and Case in 1999. CNH Global became the
new name of the Agricultural and Construction Equipment
Sector following its acquisition of Case Corporation in 1999.
CNH Global
Agricultural and Construction
Equipment
Highlights