Chrysler 2009 Annual Report Download - page 108

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FPT Powertrain Technologies
HIGHLIGHTS
(E million) 2009 2008
Net revenues 4,952 7,000
Trading profit/(loss) (25) 166
Operating profit/(loss) (*) (114) 162
Investments in tangible and intangible assets 562 898
of which capitalised R&D costs 99 105
Total R&D expenditure (**) 140 141
No. of employees at year end (***) 19,638 20,507
(*) Including restructuring costs and other unusual income/(expense).
(**) Includes capitalised R&D and R&D charged directly to the income statement.
(***) Also includes Iveco personnel employed at powertrain product lines transferred to FPT (7,685 employees at year-end 2009 and 8,335
employees at year-end 2008).
OPERATING PERFORMANCE
FPT Powertrain Technologies operates through two product lines: Passenger & Commercial Vehicles (P&CV),
which produces engines and transmissions for cars and light commercial vehicles, and Industrial & Marine
(I&M), which produces powertrains for trucks and agricultural and construction equipment, as well as marine
engines. FPT’s activities also include engine and transmission research carried out by Centro Ricerche Fiat, and
coordination of the same areas of research activity at Elasis.
The Sector experienced a sharp contraction in volumes during the first half of 2009 followed by a recovery
in delivery of passenger car engines in the second half. For the Industrial & Marine product line, the decline
remained particularly pronounced throughout the year.
Revenues for 2009 totalled €4,952 million, a 29.3% decrease over the previous year. Sales to external
customers and joint ventures represented 16% of total revenues (22% in 2008).
The P&CV product line sold 2,290,000 engines in 2009, representing a 2.7% decline, and 2,208,000
transmissions, 9.4% higher than the previous year. Sales of diesel engines to external customers accounted
for approximately 7% of total sales volumes, compared with 14% for 2008.
The I&M product line sold 268,000 units, down 50.9% over 2008. Deliveries were mainly to Iveco (38%), CNH
(25%) and Sevel (26%), the joint venture in the production of light commercial vehicles. In addition, 53,000
transmissions (-50.2%) and 105,000 axles (-61.5%) were sold.
During the year, FPT Powertrain Technologies continued implementation of agreements signed in previous
years and signed several new agreements.
The Verrone plant was expanded and upgraded following the letter of understanding signed in 2008 between
FPT, the Region of Piedmont, the Province of Biella and the City of Verrone and began production of the new
C635 transmission for medium segment vehicles.