Chrysler 2004 Annual Report Download - page 74

generated net revenues of 637 million euros in 2004, down
slightly from the 655 million euros booked in 2003.
In 2004, these operations generated income before taxes
of 11 million euros, compared with a loss of 43 million euros
in 2003. An increase in the operating income generated by
the rental operations and a decrease in nonoperating charges,
which in 2003 included the residual loss on the sale of Fraikin,
are the main reasons for this improvement.
PRODUCT INNOVATION AND INVESTMENTS
During the closing months of the year, the Sector launched
important programs that will come to fruition at the
manufacturing and distribution level in future years.
Major projects carried out in 2004 focused mainly on achieving
compliance with the Euro 4-5 emissions standards and
renovating all segments of the bus line (coach, long-distance
and urban).
The Sector’s development work concerned primarily the
restyling of the Light product line; the renewal of the Heavy
Off Road Trakker line; the development of active, passive and
preventive safety systems; and issues related to on-the-road
productivity.
In the area of engines, Iveco completed the investments
needed to produce four new families of engines (F1, NEF,
CURSOR and VECTOR) and carried out the development,
certification and installation procedures required for automotive
use of the main versions available in each engine family. At the
same time, it continued to develop additional engine families
configured for automotive, agricultural, power generation,
marine and railroad applications.
An important achievement was the selection of the Bourbon
Lancy plant, in France, as the recipient of the prestigious JIPM
TPM Award.
Iveco also invested in improving the quality and performance
of the transmissions and front and rear axles it manufactures at
its Turin and Barcelona factories. In addition, it launched several
ambitious innovation projects involving alternative fuels, engines
fueled with compressed or regular natural gas that have a low
environmental impact, injection and turbocharging systems,
and exhaust-gas treatment systems.
Commercial launches carried out in 2004 included products
in the Light line (vehicles equipped with the three-liter F1C
engine), Heavy line (new Trakker), Medium line (Eurocargo 4x4),
Astra line (rigid AAT40 Dumper) and gearbox line (ESP DAILY).
RESULTS FOR THE YEAR
In 2004, driven by the improvement in unit sales discussed
above, Iveco’s net revenues grew to 9,292 million euros, or
10.1% more than in 2003.
Operating income totaled 357 million euros, compared with
81 million euros in 2003. This remarkable gain reflects the
combined impact of a higher volume of sales and the positive
effect that product range repositioning had on prices.
Significant inroads were also made in lowering product costs
and handling trade-ins.
Depreciation and amortization amounted to 308 million euros
in 2004 (304 million euros in 2003).
Iveco posted a net income of 109 million euros, compared
with a loss of 258 million euros in 2003. This year-over-year
improvement of 367 million euros is the product of the
increase in operating income combined with the
impact of a major decrease in restructuring
charges.
REPORT ON
OPERATIONS
01
72