Chrysler 2011 Annual Report Download - page 120

119
Report on Operations
Metallurgical Products
Teksid
Highlights
(€ million) 2011 2010
Net revenues 922 776
Trading profit/(loss) 26 17
Operating profit/(loss) (*) (2) 17
Investments in tangible and intangible assets 38 31
Total R&D expenditure (**) 12
Employees at year end 7,865 7,275
(*) Includes restructuring costs and other unusual income/(expense)
(**) Includes capitalized R&D and R&D charged directly to the income statement
Operating Performance
Following the global economic crisis, which from early 2009 impacted almost every sector of the economy,
moderate increases in demand were registered in 2011 although still below pre-crisis levels.
Increases were recorded for Teksid’s most important segments – Light Vehicles and Heavy Trucks – albeit with
marked variations from market to market. Production in the Light Vehicle segment was up 2.8% worldwide over
the prior year (+2.9% in Europe and +9.1% in NAFTA), while a 6.0% increase was registered for Heavy Trucks
(+29.3% in Europe, +53.9% in North America and -6.4% in the Far East).
The Cast Iron business unit recorded a 14.3% increase in volumes over 2010, with business in the heavy vehicle
segment showing the most notable improvement. Volumes were higher in Europe (+9.4%), the NAFTA region
(+72.9%), where the heavy segment is the sector’s core focus, and Brazil (+7.7%). The business unit’s revenues
were up 23.4%, on the back of both higher volumes and higher prices, which reflected increased raw material
costs.
The Cast Iron business unit also operates in China through Hua Dong Teksid Automotive Foundry Co. Ltd., a
joint venture with the SAIC group (accounted for under the equity method). The JV recorded a 19.2% increase
in volumes for the year.
The Aluminum business unit posted an 8.0% decrease in volumes and a 4.9% decrease in revenues.