Chrysler 2007 Annual Report Download - page 39

Report on Operations Financial Review of the Group38
offset in part by lower restructuring costs for 345 million
euros.
Net gains on the disposal of investments totalled 190 million euros
and mainly include the following gains: 118 million euros for the
sale of the interest in Mediobanca S.p.A., and 42 million euros
realised on the completion of the sale of Ingest Facility S.p.A.
In 2006 this item amounted to 607 million euros and included the
gain of 463 million euros resulting from the establishment of the
joint venture Fiat Group Automobiles Financial Services, the gains
on the sale of B.U.C. - Banca Unione di Credito (80 million euros),
Immobiliare Novoli S.p.A. (39 million euros), Machen Iveco
Holding SA that controlled 51% of Ashok Leyland Ltd (23 million
euros), Atlanet S.p.A. (22 million euros) and the residual interest
in IPI S.p.A. (9 million euros), as well as the 29 million euro loss,
at the time an expected loss, in connection with the sale of
Meridian Technologies Inc. which was finalized on March 2, 2007.
Restructuring costs totalled 105 million euros and related
primarily to Fiat Group Automobiles (40 million euros), CNH
(30 million euros) and Comau (21 million euros).
In 2006, restructuring costs totalled 450 million euros and were
mainly attributable to Comau (179 million euros) in connection
the restructuring and reshaping of the scope of the Sector’s
operations, CNH (145 million euros), FPT Powertrain
Technologies (60 million euros), Magneti Marelli (16 million
euros), Business Solutions (12 million euros).
Other unusual income (expenses) consisted of net expenses of
166 million euros, largely in connection with the rationalisation
of some strategic suppliers of the Group, some of which were
acquired in 2007.
The 47 million euros in net expenses reported in 2006 included
26 million euros attributable to the impairment of the goodwill
of certain European companies of Comau, resulting from the
restructuring and reshaping of its scope of operations, and 17
million euros due to the reorganisation and rationalisation of
relationships with Group suppliers.
The following table illustrates the components of operating
result broken down by Sector:
(in millions of euros) 2007 2006 2007 2006 2007 2006 2007 2006 2007 2006
Fiat Group Automobiles 803 291 8461 40 9(136) (16) 635 727
Maserati 24 (33) ----(2) -22 (33)
Ferrari 266 183 ------266 183
Agricultural and Construction
Equipment (CNH) 990 737 --30 145 (7) -953 592
Trucks and Commercial
Vehicles (Iveco) 813 546 -25 10 6--803 565
FPT Powertrain Technologies 271 168 --160 (13) (6) 257 102
Components (Magneti Marelli) 214 190 ---16 (5) 1209 175
Metallurgical Products (Teksid) 47 56 -(29) (1) 4(1) 347 26
Production Systems (Comau) (23) (66) 11 (1) 21 179 -(26) (33) (272)
Publishing and
Communications (Itedi) 12 11 -11---11 12
Holding companies, Other
companies and Eliminations (184) (132) 171 150 331 (2) (3) (18) (16)
Total for the Group 3,233 1,951 190 607 105 450 (166) (47) 3,152 2,061
Trading profit
Gains/(losses)
on the disposal
of investments Restructuring costs
Other unusual
income (expenses) Operating result