Chrysler 2011 Annual Report Download - page 83

Report on
Operations
82
Financial
Review –
Fiat Group
Industrial Activities and Financial Services: 2011 results
The following tables provide a breakdown of the consolidated statements of income, financial position and cash flows between Industrial Activities and
Financial Services. Financial Services includes subsidiaries of Fiat Group Automobiles and Ferrari engaged in retail and dealer finance, leasing and rental
activities, as well as FGA Capital (the joint venture between Fiat Group Automobiles and Crédit Agricole), which is accounted for under the equity method.
Basis of analysis
The segmentation between Industrial Activities and Financial Services represents a sub-consolidation prepared on the basis of the core business activities
carried out by each Group company.
Investments held by companies belonging to one segment in companies included in the other segment are accounted for under the equity method. To
provide a more meaningful presentation of net profit, the results of investments accounted for in this manner are classified in the income statement under
result from intersegment investments.
The holding companies (Fiat S.p.A., Fiat Partecipazioni S.p.A., Fiat North America LLC and Fiat Gestione Partecipazioni S.p.A.) are classified under Industrial
Activities.
The sub-consolidation for Industrial Activities also includes companies that perform centralized treasury activities for Fiat excluding Chrysler (i.e., raising
funds in the market and financing Group companies, with the exception of Chrysler Group LLC and subsidiaries). These activities do not, however, include
offering financing to third parties.
N.B.: All Chrysler Group activities are included under Industrial Activities and Chrysler Group’s treasury activities (including funding and cash management)
are managed separately from those of Fiat Group.
Operating Performance by Activity
2011 2010
(€ million) Consolidated
Industrial
Activities
Financial
Services Consolidated
Industrial
Activities
Financial
Services
Net revenues 59,559 59,297 358 35,880 35,676 270
Cost of sales 50,704 50,545 255 30,718 30,604 180
Selling, general and administrative 5,047 5,009 38 2,956 2,922 34
Research and development 1,367 1,367 - 1,013 1,013 -
Other income/(expense) (49) (56) 7 (81) (90) 9
TRADING PROFIT/(LOSS) 2,392 2,320 72 1,112 1,047 65
Gains/(losses) on disposals of investments 21 21 - 12 12 -
Restructuring costs 102 102 - 118 118 -
Other unusual income/(expense) 1,025 1,026 (1) (14) (14) -
OPERATING PROFIT/(LOSS) 3,336 3,265 71 992 927 65
Financial income/(expense) (1,282) (1,282) - (400) (400) -
Result from investments (*) 131 54 77 114 41 73
PROFIT/(LOSS) BEFORE TAXES 2,185 2,037 148 706 568 138
Income taxes 534 517 17 484 460 24
PROFIT/(LOSS) 1,651 1,520 131 222 108 114
Result from intersegment investments - 131 - - 114 -
PROFIT/(LOSS) 1,651 1,651 131 222 222 114
(*) Includes income from investments, as well as impairment (losses)/reversals on non-intersegment investments accounted for under the equity method