Chrysler 2004 Annual Report Download - page 77

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Teksid
METALLURGICAL PRODUCTS — TEKSID
SALES PERFORMANCE
In 2004, Teksid continued with its restructuring plan, which
involves both the Cast Iron Business Unit and the Magnesium
Business Unit. The plan is aimed at bringing production
structures and income generating capacity back into line in
all production plants, even under current market conditions.
The situation for the individual Business Units was as follows:
■In 2004, the Magnesium Business Unit (Meridian) continued
to concentrate on the North American market, which
accounted for 80% of revenues as against 82% in 2003.
Though volumes increased by 4.9%, revenues were penalized
by the strengthening of the euro against the US dollar,
dropping 4.2% as a result.
■The Cast Iron Business Unit continued to boost its efficiency
in 2004 by rationalizing production facilities. Together with
an 11% increase in volumes, the gains in profitability achieved
through these measures softened the unfavorable impact
of euro/dollar exchange rates and the spiraling cost of raw
materials. Restructuring also continued at the Crescentino
plant, which is sharpening its focus on the manufacture of
Revenues by geographical
region of destination
Employees by geographical
region
Italy Rest of Europe Rest of the world
0 50% 100%
HIGHLIGHTS
(in millions of euros) 2004 2003 2002
Net revenues 911 844 1,539
Operating result 35 12 27
EBIT (*) 26 (56) (137)
Net result before
minority interest 3(91) (214)
Cash flow (**) 51 (43) (121)
Capital expenditures 44 56 78
Research and development 4721
Net invested capital 249 194 250
Number of employees 8,571 7,556 7,368
(*) It includes non-operating income and expenses.
(**) Net result + depreciation and amortization.