Chrysler 2008 Annual Report Download - page 93

Financial Review – Fiat S.p.A.
Report on Operations Financial Review – Fiat S.p.A.92
The following financial review is based on the 2008 financial
statements prepared in accordance with the International
Financial Reporting Standards (“IFRS”) issued by the
International Accounting Standards Board (“IASB”) and
adopted by the European Union, and with regulations
implementing Article 9 of Legislative Decree 38/2005.
Following is a summary of Fiat S.p.A.’s income statement:
Operating Performance
For 2008, Fiat S.p.A., the Group’s Parent Company, reported net
profit of €1,199 million, compared to net profit of €2,069
million for the prior year.
(€ millions) 2008 2007
Income from investments 867 2,188
- Dividends 874 823
- Impairment (losses)/reversals on investments (7) 1,247
- Gains/(losses) on disposals –118
Personnel and operating costs, net of other income (81) (98)
Gains from non-recurring transactions 879 –
Financial income/(expense) (422) (149)
Profit before taxes 1,243 1,941
Income taxes (44) 128
Profit for the year 1,199 2,069
Income from Investments was €867 million and consists of
dividends received during the period, net of impairment losses
on investments. This item was €1,321 million lower than the
figure for the prior year (€2,188 million), which included
reversals of impairment losses and gains on disposal.
Specifically:
Dividends of €874 million consist almost entirely of dividends
from subsidiaries: Fiat Partecipazioni S.p.A. (€500 million),
Ferrari S.p.A. (€85 million), Iveco S.p.A. (€78 million), Fiat
Netherlands Holding N.V. (€61 million), Business Solutions
S.p.A. (€54 million), Fiat Finance S.p.A. (€50 million), FGI - Fiat
Group International S.A. (€44 million) and Itedi – Italiana
Edizioni (€2 million).
In 2007, dividends totalled €823 million and were primarily
from: FGI - Fiat Group International S.A. (€271 million), Fiat
Partecipazioni S.p.A. (€250 million), Fiat Netherlands Holding
N.V. (€151 million), Ferrari S.p.A. (€64 million) and Fiat Finance
S.p.A. (€60 million);
Impairment Losses on Investments of €7 million related
entirely to the impairment loss recognised on the investment
in Comau S.p.A. partly attributable to losses reported by the
company for the year.
In 2007, there were net reversals €1,247 million which reflected
the partial reversal of impairment losses on the investment in
Fiat Partecipazioni S.p.A. (€1,308 million, essentially related to
Fiat Group Automobiles S.p.A.), net of an impairment loss
recognised on the investment in Comau S.p.A. (€61 million);
Gains on Disposals were €118 million for the prior year and
represented a gain from disposal of the 1.83% held in
Mediobanca S.p.A.