Chrysler 2002 Annual Report Download - page 47

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Results for the year
In 2002, the Sector had revenues of 22,147 million euros, or 9.4%
less than the 24,440 million euros reported in 2001. As discussed
above, an 11.1% drop in unit sales is the main reason for the
decrease.
The year ended with an operating loss of 1,343 million euros
(-6.1% of revenues), compared with a loss of 549 million euros
in 2001. This further deterioration reflects a drop in the number
of units shipped, offset in part by an improvement in the quality
of its sales, and the additional provisions booked to cover a
lengthening of the contractual warranty period to two years.
Research and development outlays totaled 861 million euros,
about the same as in 2001, but advertising expenses decreased
by 7.4% to 941 million euros.
A positive contribution came from reductions in product costs
and overhead, which were made possible by a cost cutting
plan launched in 2002, and from the synergies generated by the
Fiat-GM alliance (synergies of 350 million euros, compared with
a cumulative amount of 272 million euros at the end of 2001).
The net loss for the year widened to 2,739 million euros (-1,442
million euros in 2001) due to a deterioration of Fiat Auto’s
operating profitability and to the booking of net non-operating
charges of 796 million euros, mainly attributable to the
restructuring plan (about 550 million euros).
45 Report on Operations Fiat Auto Holdings