Chrysler 2005 Annual Report Download - page 36

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Report on Operations Financial Review of the Group
Industrial Activities
In 2005 net revenues of Industrial Activities totalled 45,350 million euros, representing an increase of 2.4% with respect to the previous year,
following growth in the Automobiles business area, Iveco, CNH and the Components and Production Systems business area.
The trading profit of Industrial Activities totalled 682 million euros in 2005, against a loss of 226 million euros in 2004. The improvement is
mainly attributable to the reduction of 546 million euros in the trading loss of Fiat Auto, as well as growth at Iveco, CNH and the Components
and Production Systems business area.
The operating result of Industrial Activities improved from an operating loss of 861 million euros in 2004 to an operating profit of 1,899 million
euros in 2005, as a result of the improvement in trading profit and the significant contribution of unusual income, particularly that of 1,134 million
euros resulting from the General Motors indemnity and the gain on the sale to EDF of the equity investment in Italenergia Bis (878 million euros).
Financial Services
Revenues
(in millions of euros) 2005 2004 % change
Fiat Auto 619 743 -16.7%
Agricultural and Construction Equipment (CNH) 879 727 20.9%
Commercial Vehicles (Iveco) 457 591 -22.7%
Holding companies and Other companies (1) 68 62 9.7%
Total 2,023 2,123 -4.7%
(1) These amounts refer to the banking activities performed by Banca Unione di Credito.
In 2005, the net revenues of Financial Services totalled 2,023 million euros, 4.7% less than in 2004. Growth at CNH only partially offset
the decreases at Fiat Auto and Iveco. In particular:
the Financial Services of Fiat Auto generated revenues of 619 million euros, compared with 743 million euros in 2004. This decrease principally
reflects the sale of retail financing activities in the United Kingdom in the fourth quarter of 2004 and the reduced financing to suppliers;
CNH’s Financial Services reported revenues of 879 million euros, up 20.9% from 2004. This growth reflects improved yield and greater
financing of the dealer network;
Iveco’s Financial Services generated net revenues of 457 million euros (591 million euros in 2004). The decrease stemmed mainly from the
sale of operations within the framework of the transaction with Barclays, which therefore contributed only for the first five months of 2005.
Trading profit
(in millions of euros) 2005 2004 Change
Fiat Auto 60 65 -5
Agricultural and Construction Equipment (CNH) 235 188 47
Commercial Vehicles (Iveco) 10 11 -1
Holding companies and Other companies (1) 13 12 1
Total 318 276 42
(1) These amounts refer to the banking activities performed by Banca Unione di Credito.