Chrysler 2011 Annual Report Download - page 123

122 Report on
Operations
Financial
Review –
Fiat S.p.A.
Financial Review – Fiat S.p.A.
The following information is based on the 2011 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, in addition to regulations implementing Article 9 of
Legislative Decree 38/2005.
Operating Performance
For 2011, Fiat S.p.A. reported net profit of €99 million, a €343 million decrease over the prior year.
The principal line items in the income statement were as follows:
(€ million) 2011 2010
Income from investments 560 584
Dividends 388 428
Impairment (losses)/reversals on investments 157 156
Gains/(losses) on disposals 15 -
Personnel and operating costs, net of other income (70) (83)
Financial income/(expense) (435) (93)
PROFIT/(LOSS) BEFORE TAXES 55 408
Income taxes 44 34
PROFIT/(LOSS) FOR THE YEAR 99 442
Income from investments totaled €560 million and essentially consisted of dividends received for the year and net impairment reversals. The decrease of
€24 million over the prior year (€584 million for 2010) was essentially attributable to a reduction in dividends received:
Dividends totaling €388 million were received from Ferrari S.p.A. (€180 million), Fiat Gestione Partecipazioni S.p.A. (€180 million) and Fiat Finance
S.p.A. (€28 million).
For 2010, dividends totaling €428 million were received from 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).
Net impairment reversals on investments of €157 million, consisted of a full reversal of impairment losses previously recognized on Fiat Gestione
Partecipazioni S.p.A. (totaling €352 million), less impairment losses recognized on the shareholdings in Comau S.p.A. (€147 million) and Teksid Aluminum
S.r.l (€48 million).
For 2010, there were net impairment reversals on investments totaling €156 million, which 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 impairment losses 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).
Gains on disposals totaled €15 million and related to gains realized on the shareholdings in Fiat Switzerland S.A. (sold to CNH International S.A.) and
Fiat Finance North America Inc. (sold to Fiat Finance and Trade Ltd S.A.).
Personnel and operating costs, net of other income totaled €70 million, compared with €83 million for 2010.