Chrysler 2004 Annual Report Download - page 76

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Cofap Automotive Suspension
Revenues at December 31, 2004 amounted to 1,002 million euros
as against 970 million euros in the previous year. This was a 4.6%
increase over 2003 on a comparable exchange basis, and was
made possible by the increased volumes for the Panda in Poland
which offset declining Italian sales.
In Europe, new orders were received from PSA and Mercedes.
Orders were booked from GM in the United States, and from
DCX, Ford, GM and Volkswagen in Brazil.
Electronic Systems
Consolidated revenues following the company’s acquisition totaled
476 million euros. The business made significant sales as a result
of the large-scale introduction of a new telematic product for PSA.
From the standpoint of the order portfolio, 2004 saw many
important orders from major manufacturers, including the
“Nanoflorence” system for Fiat’s new Stilo and Ducato,
instrument panels for PSA Group light trucks and passenger
cars, and units for AUDI and Volkswagen vehicles.
An agreement whereby Microsoft and Fiat will cooperate in
the development of telematic systems became operational
during the first half of the year.
Exhaust Systems
Revenues at December 31, 2004 were 365 million euros, a 5.8%
increase over 2003’s 346 million euros on a comparable exchange
basis. Strong sales of the Panda in Poland, where production of
the new 1.3 SDE (small diesel engine) which equips Fiat and Opel
passenger cars was also ramped up, more than compensated for
the lackluster performance that certain Fiat models continued to
show on the Italian market.
New orders were acquired in the course of the year, and specifically
for the exhaust gas aftertreatment system for the new Fiat 1.6 MDE
(medium diesel engine) outfitting Fiat – Lancia and Alfa Romeo
vehicles, and for the exhaust system for the new Fiat Ducato, for
which development got under way late in 2004. The latter system will
also be installed on PSA Group light trucks produced by Sevel S.p.A.,
a joint venture between PSA and Fiat Auto.
A number of development programs have been initiated to adapt
exhaust systems to Euro 4 and 5 requirements.
Motorsport
Magneti Marelli participates in the major motorsport
championships as a technical partner. In 2004, it supplied
electronic control systems, fuel system and electromechanical
components, and telemetry and data acquisition systems to
leading Formula 1 teams, including Ferrari, Toyota, Renault,
Sauber, Minardi, Cosworth, McLaren and Williams. In addition,
Magneti Marelli supplied electronic control systems to Yamaha,
which won the Moto GP1 championship in 2004. During the year,
Magneti Marelli also entered into cooperative agreements with
Mercedes-Ilmor and Br-Honda.
RESULTS FOR THE YEAR
In 2004, Magneti Marelli posted consolidated net revenues of
3,804 million euros; on a comparable consolidation and exchange
rate basis, revenues thus grew by 6% over the previous year.
As the European automotive market remained stable during the
year, this increase in revenues was due more to technological
improvement of product than to any actual increase in volumes.
In particular, revenues for the Engine Management Business Unit
increased as a result of the introduction of the Diesel Buy system,
while for the Lighting Group the increase was achieved thanks to
the new high intensity discharge xenon headlamps and adaptive
front lighting systems. For the Cofap Automotive Suspension
Business Unit, volumes rose when the new Panda went into
production in Poland.
Operating income amounted to 116 million euros. As business
volumes were comparable to those of the preceding year, this
approximately 58 million euro improvement was achieved through
measures which made the cost structure more competitive and
made it possible to ease pressure on sales prices.
Depreciation and amortization of 181 million euros (compared
with 173 million euros in 2003) and research and development
expenditures of 193 million euros (158 million euros in 2003)
accounted for 10% of revenues.
Net income of 55 million euros (compared with the 90 million
euro net loss in 2003) reflected the improvements in operating
income and gains on the disposal of Midas.
As a result of this strong net income performance, cash flow
amounted to 236 million euros, as against 83 million euros in 2003.