Chrysler 2010 Annual Report Download - page 118

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PRODUCTION SYSTEMS
Comau
HIGHLIGHTS
(€ million) 2010 2009
Net revenues 1,023 728
Trading profit/(loss) (6) (28)
Operating profit/(loss) (*) (6) (32)
Investments in tangible and intangible assets 24 13
of which capitalized R&D costs 4 2
Total R&D expenditure (**) 12 10
No. of employees at year end 12,216 11,708
(*) Includes restructuring costs and other unusual income/(expense)
(**) Includes capitalized R&D and R&D charged directly to the income statement
OPERATING PERFORMANCE
During 2010, the sector’s market underwent a recovery from the global financial and industrial crisis that began
in the second half of 2008.
In the western hemisphere, automakers increased capital expenditure levels in preparation for new model
launches in 2011 and 2012.
In North America, following the emergence of Chrysler and General Motors from bankruptcy in 2009,
automakers began restructuring production facilities and launched projects geared to the development and
release of new models.
In Europe, the recovery was concentrated primarily in Germany, where new projects focused exclusively on
new model launches. Overall industry capacity remained in excess of demand.
In both Latin America and China, where decreases in investment levels had been more contained, there was a
return to the strong growth trend experienced prior to the crisis. As a result, investment intensified and Services
activities increased in Brazil and Argentina.
New contract orders were up 80% for the year to €952 million.
Overall, 29% of new orders were generated in Europe and 29% in North America, with the remaining 42%
in Latin America and Asia. By customer, 22% of orders came from Fiat Group companies and 78% from
other manufacturers. At 31 December 2010, the order backlog totaled €629 million, a 32% increase over the
previous year.
Services benefited from growth in Brazil and Argentina, where business levels were up 42% overall driven by
positive market conditions and the acquisition of new contracts outside the automotive sector (i.e., petroleum
and chemical).