Chrysler 2002 Annual Report Download - page 30

2002 2001
Industrial Financial Insurance Industrial Financial Insurance
(in millions of euros) Consolidated Activities Activities Activities Consolidated Activities Activities Activities
Net revenues 55,649 48,149 3,910 4,921 58,006 49,892 3,946 5,491
Cost of sales 48,619 42,398 3,024 4,528 49,854 43,246 2,774 5,157
Gross operating result 7,030 5,751 886 393 8,152 6,646 1,172 334
Overhead 5,782 4,868 594 320 6,149 5,121 688 340
Research and development 1,748 1,748 – – 1,817 1,817 – –
Operating income (expenses) (262)(516)184 70 132 19 40 73
Operating result (762)(1,381)476 143 318 (273) 524 67
Investment income (expenses) (*) (690)(338)3(355)(149) 4 43 (196)
Non-operating income (expenses) (2,503)(2,319)(194)10 359 455 (89) (7)
EBIT (3,955)(4,038)285 (202)528 186 478 (136)
Financial income (expenses) (862)(995)(93)226 (1,025) (1,261) (132) 368
Income (loss) before taxes (4,817)(5,033)192 24 (497) (1,075) 346 232
Income taxes (554)(669)109 6 294 97 126 71
Net result of normal operations (4,263)(4,364)83 18 (791) (1,172) 220 161
Result of intersegment investments –95(286)(14)–398 32 2
Net income (loss) before minority interest (4,263)(4,269)(203)4(791) (774) 252 163
(*) Includes investment income and writedowns and revaluations to align non-intersegment investments valued at equity.
Financial position and operating results by activity segment
For the first time, financial and operating figures are classified
according to Industrial, Financial and Insurance activities of the
Group in order to present a clearer picture of its performance.
Financial activities include the Fiat Auto, CNH, and Iveco
companies that operate financing, leasing, and rental activities,
while Insurance activities include Toro Assicurazioni Group and
Neptunia Assicurazioni Marittime S.A.
Principles of Analysis
The aforesaid classification was realized by defining specific
sub-consolidated financial statements for the three activity
segments according to the normal business performed by
each Group company.
The equity investments held by companies belonging to an
activity segment in companies included in another segment
were valued according to the equity method.
To avoid skewing the operating result of normal operations
to be represented here, the effect of this valuation on the
statement of operations is illustrated at a special item,
“Result of intersegment investments.”
The holding companies (Fiat S.p.A., Sicind S.p.A, IHF -International
Holding Fiat S.A., Fiat Partecipazioni S.p.A., Fiat Netherlands
Holding N.V) were classified in the Industrial Activity segment.
The Industrial Activity segment also includes companies that
operate centralized cash management activities, i.e. that raise
financial resources on the market and finance Group companies,
without providing financial services to others.
When the sub-consolidated figures for the various segments
were elaborated, the relative goodwill was allocated to the
activities themselves. Note that the goodwill connected with
the acquisition of and the tender offer for Toro Assicurazioni,
which was reported under holding companies in previous years,
is now allocated to Insurance Activities. Therefore, the 2001
figures have been reclassified accordingly.
The factoring transactions executed at market conditions
between the industrial and financial companies of the Group
are posted as financial receivables and payables under Financial
Activities. The portion of these items that, according to the last
contractual relationship established with others, is still of a
commercial nature, insofar as it does not yield interest, was
reclassified directly in the sub-consolidated results of Financial
Activities under trade receivables and payables.
Operating Performance by Activity Segment
Industrial Activities
The net revenues for Industrial Activities, including changes
in contract work in progress, totaled 48,149 million euros, for
adecrease of 3.5% with respect to the previous year, due to
the market slowdown that impacted the automotive sector,
while the reduction caused by the divestiture of business lines
at Magneti Marelli and Teksid was offset by the consolidation
of Kobelco America by CNH Global and the line-by-line
consolidation of Irisbus by Iveco.
28 Report on Operations Analysis of the Financial Position and Operating Results
of the Fiat Group and Fiat S.p.A.