Chrysler 2007 Annual Report Download - page 35

Report on Operations Financial Review of the Group34
■Revenues of FPT Powertrain Technologies totalled 7,075
millions euros, an increase of 15.1% from the previous year, as
a result of a significant growth in volumes (mainly due to
higher demand by Fiat Group Automobiles and Iveco). Sales to
third parties and joint ventures represented 24% of revenues
(26% of revenues in 2006).
In 2007 revenues of the Passenger & Commercial Vehicles
product line totalled 3,891 million euros (+12.9% from 2006),
79% of which earmarked for Group companies and the
remainder mainly representing sales of diesel engines to third
parties. During the year, 2,597,000 engines (+11.5%) and
2,093,000 transmissions (+23.5%) were sold.
The Industrial & Marine product line had revenues of 3,166
million euros, an increase of 18.2% compared with 2006. Sales
to Fiat Group companies accounted for approximately 74% of
the total (72% of revenues in 2006). A total of 505,000 engines
(an increase of 13.9%) were delivered, mainly to Iveco (45%),
CNH (19%) and the Sevel joint venture (26%). In addition,
123,000 transmissions (+8.4%) and 300,000 axles (+14.4%)
were sold.
■In 2007 Magneti Marelli had revenues of 5,000 million euros,
an increase of 12.2% over 2006. The impact of the
consolidation, as of May 2007, of the After Market Parts &
Services business was largely offset by the effect of the sale to
Fiat Group Automobiles of the activities for the final assembly
of suspension systems earmarked for Fiat models, which took
place in the second quarter of 2006. On a comparable
consolidation basis, revenues increased by 11.7%, due to
higher volumes sold to both Fiat Group companies and third
parties.
All business lines posted positive performances. The Lighting
business, with its high-tech products and a high incidence of
sales to third parties, posted significant increases in volumes
in all its principal markets. Sales of Selespeed systems and
Gasoline Direct Injection systems in Europe, as well as higher
volumes in Brazil and China, drove growth in the Engine
Control business line. Revenues of the Electronic Systems
business line benefited from higher sales of instrument panels
to both Fiat and third parties, as well as occupant
compartment modules earmarked for Fiat customers.
The positive performance of Suspensions Systems in Poland,
Italy and Brazil is mainly connected to its main customer Fiat.
Exhaust Systems grew on the back of higher sales to Fiat
(Italy, Poland and Brazil) and to third parties (Brazil and
Spain).
■In 2007, Teksid reported revenues of 783 million euros,
down 20% from 2006. The decrease is mainly due to the sale
of the Magnesium activities at the beginning of March 2007,
which was only partially compensated by the consolidation
of Teksid Aluminum starting in September 2007. On a
comparable scope of operations, revenues were down 3.4%,
due to a 3.8% drop in volume at the Cast Iron business.
Lower sales in North America were partly offset by positive
performance on the Brazilian and European markets.
■Comau had revenues of 1,089 million euros. The decrease of
14.9% from 2006 is mainly due to operations in North America,
which were impacted by difficult trading conditions and
unfavourable exchange rate trends. Lower decreases were
reported by the Body-welding and Powertrain operations in
Europe and by the Service businesses, consistent with the
reshaping of the scope of operations.
Other Businesses
Other Businesses include, in the line item Holding companies
and Other companies, the figures reported in 2006 for the
Services Sector, now Fiat Services.
(in millions of euros) 2007 2006 % change
FPT Powertrain Technologies 7,075 6,145 15.1
Components (Magneti Marelli) 5,000 4,455 12.2
Metallurgical Products (Teksid) 783 979 -20.0
Production Systems (Comau) 1,089 1,280 -14.9
Eliminations (572) (493) -
Total 13,375 12,366 8.2