Chrysler 2007 Annual Report Download - page 40

Report on Operations Financial Review of the Group 39
Net result
Net financial expenses totalled 564 million euros in 2007,
against 576 million euros in 2006, and include the positive
impact of 70 million euros (71 million euros in 2006) from two
stock option-related equity swaps on Fiat shares. The
improvement arising from lower net industrial debt was in part
offset by expenses of 43 million euros recognised in relation to
the accelerated redemption of CNH senior notes due in 2011.
The financial component of costs for pension plans and other
employee benefits totalled 155 million euros in 2007, compared
with 166 million euros in 2006.
In 2007 Investment income totalled 185 million euros, against
income of 156 million euros in the previous year. The improvement
of 29 million euros is largely due to the contribution of Fiat Group
Automobiles Financial Services and higher results at the main
industrial joint ventures (Tofas and Sevel).
In 2007 Income before taxes totalled 2,773 million euros, against
income of 1,641 million euros in 2006. The 1,132 million euro
improvement is due to the increase of 1,091 million euros in
operating income, lower net financial expenses for 12 million
euros and an increase in investment income of 29 million euros.
Income taxes totalled 719 million euros in 2007 (490 million
euros in 2006), 188 million euros of which for IRAP (149 million
euros in 2006) and 21 million euros for prior years taxes
(56 million euros in 2006). In 2007, the increase in the charge
for income taxes is the consequence of the significant rise in
profits from operations, partially offset by an increase in
recognised deferred tax assets and lower taxes relating to
previous years.
Excluding IRAP the Group effective tax rate was 19% in 2007
(21% in 2006).
In 2007 Net income totalled 2,054 million euros, against
income of 1,151 million euros in 2006.
Net income attributable to the equity holders of the Parent
amounted to 1,953 million euros in 2007 (1,065 million euros
in 2006).