Chrysler 2004 Annual Report Download - page 82

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■Administration and Procurement:In 2004, parameters and
scope of activities were further defined within the Group.
This was the occasion to set standards of service and mutual
responsibilities in greater detail. Turnover in 2004 amounted
to 299 million euros, 77% of which was from “captive”
customers.
■I.C.T. – Information and Communication Technology:The
main activity in this unit is Global Value, a joint venture with
IBM. e-Spin, a competence center active in a number of
specific areas of innovation, most notably in the online
application and management of business processes, is also
part of this unit, as is Atlanet, a provider of fixed telephony
services and connectivity in general. Consolidated from
January 2004, Atlanet broke even after the heavy losses
incurred in the previous year. The unit as a whole posted
revenues of about 728 million euros in 2004, 51% of which
came from Fiat Group companies. Of this total, Atlanet
contributed 155 million euros, with 78% from non-Fiat
customers.
RESULTS FOR THE YEAR
Revenues for the Sector totaled 1,572 million euros (49% from
the captive market) in 2004, a decline of 13.4% compared with
the previous year. This decrease was chiefly due to the
divestiture of Fiat Engineering, as well as to the lower volumes
achieved in information technology.
Operating income amounted to 36 million euros, compared with
45 million euros the previous year. On a comparable scope of
operations, however, operating income improved by 11 million
euros, largely as a result of the major efficiency gains and cost
cuts made in all units.
The net result for 2004 showed a loss of 26 million euros, slightly
worse than last year (20 million euros). Most of the loss was
generated by writedowns on equity investments (25 million
euros) and mostly at Global Value Service. However, on a
comparable scope of operations, the result showed an
improvement of 5 million euros.