Chrysler 2007 Annual Report Download - page 85

Operating Performance
In 2007, the global economic environment continued to be
impacted by strong pressure on the energy market, thus
showing little change since 2006. Against this challenging
background, the Sector’s diversification in terms of customers
and geographical destination, as well as ongoing
improvements in process efficiency and logistics, made it
possible to improve overall performance. As part of these
improvements, the Crescentino plant was reconfigured,
completing a process initiated in 2004.
In early March 2007, Teksid’s interest in Meridian Technologies
Inc., through which the Magnesium Business Unit operated,
was sold to a consortium of investors headed by the Swiss
holding company Estatia AG. These operations were
consequently deconsolidated as of the date of disposal.
Teksid Aluminum S.r.l., a company operating in the aluminium
business and now wholly owned by the Fiat Group, has been
included in the Sector’s representation since September 2007.
Excluding the impact of these operations, Teksid reported a
modest drop in revenues (-3.4%) from 2006.
In 2007 revenues of the Cast Iron Business Unit decreased by
3.1% and volumes by 3.8% over 2006. The negative change is
due to lower sales on the North American market (-34.3%) in
part offset by higher sales in Brazil (+8.3%) and in Europe
(+7.6%). The exchange rate impact was also unfavourable,
especially due to the performance of the US dollar.
It is worth noting that in the Cast Iron business, Teksid is also
active in China through Hua Dong Teksid Automotive Foundry
Co. Ltd, a jointly controlled company accounted for using the
equity method. This company recorded a 25.8% increase in
volumes from 2006.
Highlights
(in millions of euros) 2007 2006
Net revenues 783 979
Trading profit 47 56
Operating result (*) 47 26
Investments in tangible and intangible assets 32 32
Total R&D expenses (**) 15
Employees at year-end (number) 7,826 8,342
(*) Including restructuring costs and unusual income (expenses).
(**) Including R&D capitalised and charged to operations.
Report on Operations Teksid
Metallurgical Products — Teksid
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