Chrysler 2011 Annual Report Download - page 73

Report on
Operations
72
Financial
Review –
Fiat Group
Principal changes in the scope of consolidation in 2011
On 24 May 2011, Fiat acquired an additional 16% ownership interest (fully diluted) in Chrysler Group LLC (“Chrysler”), increasing its total interest to 46%
(fully diluted). In consideration of the potential voting rights associated with options held by Fiat that also became exercisable on that date, under IAS 27 –
Consolidated and Separate Financial Statements, Fiat was deemed to have acquired control of Chrysler. Accordingly, Chrysler was fully consolidated by
Fiat from that date. On July 21st, Fiat purchased the 6.031% and 1.508% fully-diluted ownership interests held in Chrysler by the U.S. Treasury and the
Canadian government, respectively. As a result of these transactions, at 31 December 2011 Fiat held a 53.5% fully-diluted ownership interest in Chrysler.
On 29 June 2011, Fiat Powertrain completed the acquisition of a 50% interest in VM Motori Group, a joint venture between General Motors and Fiat
Powertrain specialized in design and production of diesel engines and parts. From that date, the investment has been accounted for using the equity
method.
Financial Review
Operating Performance
2011 2010
(€ million)
Fiat with
Chrysler Chrysler
Fiat excluding
Chrysler Fiat
Net revenues 59,559 23,609 37,382 35,880
Cost of sales 50,704 20,003 32,133 30,718
Selling, general and administrative 5,047 1,866 3,181 2,956
Research and development 1,367 385 982 1,013
Other income/(expense) (49) (10) (39) (81)
TRADING PROFIT/(LOSS) 2,392 1,345 1,047 1,112
Gains/(losses) on disposals of investments 21 - 21 12
Restructuring costs 102 (7) 109 118
Other unusual income/(expense) 1,025 (152) 1,177 (14)
OPERATING PROFIT/(LOSS) 3,336 1,200 2,136 992
Financial income/(expense) (1,282) (486) (796) (400)
Result from investments 131 1 130 114
Share of profit/(loss) of investees accounted for using the equity method 146 1 145 120
Other income/(expense) from investments (15) - (15) (6)
PROFIT/(LOSS) BEFORE TAXES 2,185 715 1,470 706
Income taxes 534 70 464 484
PROFIT/(LOSS) 1,651 645 1,006 222
PROFIT/(LOSS) ATTRIBUTABLE TO:
Owners of the parent 1,334 354 980 179
Non-controlling interests 317 291 26 43
Financial Review – Fiat Group