Chrysler 2009 Annual Report Download - page 115

REPORT ON
OPERATIONS
OPERATING
PERFORMANCE
BY SECTOR
114
METALLURGICAL PRODUCTS
Teksid
HIGHLIGHTS
(E million) 2009 2008
Net revenues 578 837
Trading profit/(loss) (12) 41
Operating profit/(loss) (*) (14) 49
Investments in tangible and intangible assets 33 41
Total R&D expenditure (**) 2 3
No. of employees at year end 6,194 7,600
(*) Including restructuring costs and other unusual income/(expense).
(**) Includes capitalised R&D and R&D charged directly to the income statement.
OPERATING PERFORMANCE
In 2009, the global economic situation caused sharp declines in demand in the first half, followed by a partial
recovery beginning in the third quarter, albeit with performance varying by country and region. More specifically,
performance in Teksid’s principal markets was as follows: in Western Europe, the passenger vehicle market
was stable with respect to the previous year, while demand for light commercial vehicles plummeted; in Brazil,
the overall market recorded positive performance.
The heavy vehicles market was down significantly in all regions, with the exception of Asia, where the decline
was less pronounced.
As a result of the economic circumstances already described, Teksid experienced a 30.9% decline in
revenues for 2009.
The Cast Iron business unit recorded a 26.6% decrease in volumes over 2008, attributable to decreases in
Europe (-9%), the NAFTA area (-52%), where the Sector is predominantly focused on heavy vehicles, and Brazil
(-30%) where the decline was also attributable to a sharp decrease in supply for heavy vehicles. Revenues for
the business unit were down 32.3%.
In addition, Teksid’s Cast Iron business unit operates in China through Hua Dong Teksid Automotive Foundry
Co. Ltd., a joint venture with the SAIC group, accounted for under the equity method. In 2009, the company
recorded a decrease in delivery volumes of 12.5%.
The Aluminium business unit posted a 5.5% decline in volumes and a 22.8% fall revenues, attributable to lower
sales volumes, lower revenues from secondary activities (equipment sales), as well as a decrease in selling
prices driven by a drop in the market price of raw materials to which the unit’s selling prices are linked.