Chrysler 2006 Annual Report Download - page 23

Financial Services
Revenues
(in millions of euros) 2006 2005 % change
Fiat Auto 991 619 60.1
Agricultural and Construction Equipment (CNH-Case New Holland) 1,061 879 20.7
Trucks and Commercial Vehicles (Iveco) 508 457 11.2
Holding companies and Other companies (1) 47 68 -30.9
Total 2,607 2,023 28.9
(1) These amounts refer to the banking activities performed by B.U.C. – Banca Unione di Credito until August 2006 when it was sold.
Report on Operations Financial Review of the Group 43Report on Operations Financial Review of the Group42
The trading profit of Financial Services in 2006 was 296 million
euros compared with 318 million euros in 2005:
■the decrease recorded at the Financial Services of Fiat Auto
(trading profit was 56 million euros in 2006 versus 60 million
euros in 2005) is mainly attributable to the contraction in
financing to suppliers and the results of the services
companies; in fact, in the renting business, the positive impact
of the consolidation of Leasys virtually offset lower results by
renting companies outside of Italy;
■the trading profit of CNH’s Financial Services grew from
235 million euros in 2005 to 249 million euros in 2006.
The improvement reflects growth in the managed portfolio,
In 2006 Financial Services reported net revenues of 2,607
million euros, up 28.9% from the 2,023 million euros of 2005
due to the increases reported at Fiat Auto, Iveco and CNH,
which were only partially offset by the impact of the sale of
B.U.C - Banca Unione di Credito, whose activities were
deconsolidated at the end of August 2006. In particular:
■the Financial Services of Fiat Auto had revenues of 991
million euros, versus 619 million euros in 2005. The increase
principally reflects the change in the scope of operations
following the consolidation of Leasys, full control of which was
acquired at the end of 2005. On a comparable basis, revenues
would have increased by 3.4% due to an increase in financing
activity to the dealer network which more than offset lower
financing activities to suppliers;
■CNH’s Financial Services reported revenues of 1,061 million
euros, up 20.7% from 2005. This improvement reflects the
increase of the financed portfolio and a higher level of the
reference interest rates;
■the Financial Services of Iveco had revenues of 508 million
euros. In 2005 revenues amounted to 457 million euros and
included activities whose sale started on June 1, 2005 as part
of the Barclays transaction. The 11.2% increase is attributable
to higher activity levels in Eastern Europe.
Trading profit
(in millions of euros) 2006 2005 Change
Fiat Auto 56 60 -4
Ferrari (1) –-1
Agricultural and Construction Equipment (CNH-Case New Holland) 249 235 14
Trucks and Commercial Vehicles (Iveco) (18) 10 -28
Holding companies and Other companies (1) 10 13 -3
Total 296 318 -22
(1) These amounts refer to the banking activities performed by B.U.C. – Banca Unione di Credito until August 2006 when it was sold.
partially offset by higher financial expenses and greater
provisions for doubtful accounts (especially relating to the
Brazilian portfolio, due to the credit renegotiation program
sponsored by the local government);
■Iveco’s Financial Services closed the year with a trading
loss of 18 million euros, compared with a trading profit of
10 million euros in 2005. The 2005 trading profit included the
profit (9 million euros) reported in the first 5 months of the
year by the activities subsequently sold within the framework
of the establishment of the joint venture with Barclays.
On a comparable basis, the decrease (19 million euros)
is mainly attributable to higher provisions connected
with renting activities in Western Europe.