Chrysler 2007 Annual Report Download - page 43

Report on Operations Financial Review of the Group42
The increase in Net inventories (1,304 million euros), attributable
to higher levels of activity at all the main industrial Sectors of the
Group, was more than offset by the decrease in Trade receivables
(560 million euros) attributable to more efficient management, by
the increase in Trade payables, which rose by 2,122 million euros
in 2007 mainly as a result of high activity levels and the rise in
the liability balance of Other receivables/(payables), accruals and
deferrals (412 million euros).
At December 31, 2007 consolidated net debt (including net
debt reclassified among Assets/liabilities held for sale)
amounted to 10,423 million euros, 1,413 million euros lower
than the 11,836 million euros reported at December 31, 2006
due to the net cash flows generated by Industrial Activities in
part offset by growth in the investment portfolio of Financial
Services companies as previously mentioned in the cash flow
analysis.
(in millions of euros) At 12.31.2007 At 12.31.2006
Debt: (17,951) (20,188)
- Asset-backed financing (6,820) (8,344)
- Other debt (11,131) (11,844)
Debt included among Liabilities held for sale -(33)
Current financial receivables from jointly controlled financial services entities (a) 81 143
Financial payables net of intersegment balances and current financial
receivables from jointly controlled financial services entities (17,870) (20,078)
Other financial assets (b) 703 382
Other financial liabilities (b) (188) (105)
Current securities 291 224
Cash and cash equivalents 6,639 7,736
Cash and cash equivalents included among Assets held for sale 25
Net (debt)/cash position (10,423) (11,836)
- Industrial Activities 355 (1,773)
- Financial Services (10,778) (10,063)
(a) This item includes current financial receivables from the joint venture Fiat Group Automobiles Financial Services (FAFS).
(b) This item includes the fair values of derivative financial instruments.
At December 31, 2007 Debt decreased by 2,237 million euros.
Net of change due to foreign currency translations, which led
to a decrease in debt of approximately 600 million euros, and
the change in the scope of consolidation, the decrease of
approximately 1.7 billion euros is attributable to lower asset-
backed financing (approximately 1 billion euros net of
exchange rate impacts) and partly to lower bank loans and
other debt (0.7 billion euros).
In 2007, bonds repayments totalled approximately 1.1 billion
euros, 767 million euros of which related to the early
redemption in August 2007 of a 9.25% Case New Holland Inc.
bond (due in 2011). In June, Fiat Finance North America Inc.
issued a 1 billion euro bond with a fixed coupon of 5.625%
and due in June 2017 as part of the 15 billion euro Global
Medium Term Note Programme.
The cash position (cash, cash equivalents and current
securities including those reclassified under Assets held for
sale, for 2 million euros) totalled 6,932 million euros at
December 31, 2007, a decrease of 1,033 million euros with
respect to 7,965 million euros at December 31, 2006.
At December 31, 2007 cash and cash equivalents included 530
million euros (627 million euros at December 31, 2006),
specifically allocated to service the debt for securitisation
structures, mainly recognised under Asset-backed financing.