Chrysler 2002 Annual Report Download - page 53

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Product innovation and investments
In the area of product innovation and development, Iveco
completed the development work and made the investments
needed to launch the Stralis AT/AD trucks at the beginning
of 2003. In the intermediate range, the focus was on the New
Eurocargo vehicles, which will be launched in stages during the
second quarter of 2003. The Sector also continued to develop
new families of engines configured for different types of
applications (automotive, agriculture, power generation and
railroad). It also continued to invest in the NEF line of engines
and in the F1A line of low horsepower engines, which are
expected to generate an increase in production due to their
suitability for new applications.
Results for the year
In 2002, Iveco’s net revenues totaled 9,136 million euros. On a
comparable consolidation basis (Irisbus Group), this amount
was 1.5% less than in 2001. The Sector was able to increase
its share of the European market, which contracted by 5.7%
overall, and to increase sales in countries outside Europe.
Operating income declined to 102 million euros (271 million
euros in 2001). This decrease is the net result of strong
competitive pressure caused by the negative impact of a
slump in demand, which was only in part offset by the gain
in market share. Other factors affecting the Sector’s operating
profitability include higher provisions for warranties, a more
aggressive reserve policy implemented in the second half
of the year in response to a product recall and greater
writedowns of the value of used vehicles. Depreciation and
amortization totaled 423 million euros in 2002, compared
with 410 million euros in 2001.
At 493 million euros, the net loss was significantly larger than
in 2001 (net loss of 123 million euros). This was due to impact
of non-operating expenses booked in 2002 mainly to recognize
the loss incurred in connection with the Fraikin divestiture and
writedowns of the carrying value assigned to the assets of
Ikarusbus, the Sector’s Hungarian subsidiary, to reflect a
cutback in the production allocated to the local market.
51 Report on Operations Iveco
Sales Performance – Units Sold by Country
(in thousands of units) 2002 2001 % change
France 17.6 22.9 (23.1)
Germany 15.0 16.3 (8.0)
Great Britain 16.2 15.4 5.2
Italy 44.3 39.3 12.7
Spain 14.7 15.2 (3.3)
Western Europe 128.8 128.4 0.3
Eastern Europe 9.5 9.7 (2.1)
Rest of the world 23.6 22.3 5.8
Total units sold (*) 161.9 160.4 0.9
Associated companies 37.5 34.3 9.3
Grand total 199.4 194.7 2.4
(*) Including 50% of Irisbus sales in 2001 and 100% in 2002.