Chrysler 2010 Annual Report Download - page 133

REPORT ON
OPERATIONS
132
FINANCIAL
REVIEW –
FIAT S.P.A.
FINANCIAL REVIEW – FIAT S.P.A.
The following information is based on the 2010 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.
OPERATING PERFORMANCE
For 2010, the Parent Company reported net profit of €442 million, a €102 million increase over the prior year.
Following is a summary of Fiat S.p.A.’s income statement:
(€ million)
2010 2009
Income from investments 584 402
Dividends 428 1,260
Impairment (losses)/reversals on investments 156 (858)
Gains/(losses) on disposals - -
Personnel and operating costs, net of other income (83) (42)
Financial income/(expense) (93) (14)
PROFIT/(LOSS) BEFORE TAXES 408 346
Income taxes 34 (6)
PROFIT/(LOSS) FOR THE YEAR 442 340
Income from investments totaled €584 million and consisted of dividends received during the year and net impairment reversals on investments. This
represents a €182 million increase over the prior year (€402 million in 2009):
Dividends of €428 million related to Fiat Finance S.p.A. (€180 million), Magneti Marelli S.p.A. (€100 million), Fiat Powertrain Technologies S.p.A. (€80 million),
Fiat Netherlands Holding N.V. (€50 million) and Business Solutions S.p.A. (€18 million).
For 2009, a total €1,260 million in dividends were received from Fiat Group Automobiles S.p.A. (€700 million) and Iveco S.p.A. (€560 million);
Net impairment reversals on investments of €156 million consisted of a partial reversal of impairment losses on Fiat Gestione Partecipazioni
S.p.A. (formerly Iveco S.p.A.) in the amount of €260 million, less impairments recognized on the shareholdings in Fiat Powertrain Technologies
S.p.A. (€80 million), Teksid Aluminum S.r.l. (€11 million), Comau S.p.A. (€7 million) and Fiat Industrial S.p.A. (€6 million).
For 2009, net impairment losses on investments of €858 million related to the shareholdings in Iveco S.p.A. (€560 million), Fiat Group Automobiles S.p.A.
(€200 million), Comau S.p.A. (€51 million), Teksid Aluminum S.r.l. (€31 million) and Fiat Partecipazioni S.p.A. (€16 million).
Personnel and operating costs, net of other income totaled €83 million, compared with €42 million for 2009.
Specifically:
Personnel and operating costs of €145 million, representing a €28 million increase over the prior year primarily attributable to non-recurring
expenditures associated with the Demerger and higher non-cash costs related to stock options. For 2010, the Company had an average of 144
employees (152 for 2009).
Other income of €62 million (€75 million for 2009) related principally to services rendered, including by senior managers, to other Group companies, and
changes in contract work in progress (contracts between Fiat S.p.A. and Treno Alta Velocità – T.A.V. S.p.A., now Rete Ferroviaria Italiana S.p.A.), which
are calculated on a percentage completion basis. The €13 million decrease over the previous year was primarily due to lower revenues from contracts
with T.A.V. S.p.A. as activities near completion.