Chrysler 2013 Annual Report Download - page 45

44 Report on Operations Financial Review – Fiat Group
Income from investments totaled €97 million (€107 million for 2012) and primarily reflects the Group’s share of the profit or loss of investees
recognized using the equity method (€87 million in 2013 and €94 million in 2012). Included in that figure are: the result from investments
in EMEA (€145 million in 2013; €160 million in 2012), in APAC (-€39 million in 2013; -€5 million in 2012), mainly related to the Group’s
share of losses of the Chinese JV attributable to industrial costs associated with new product launches, the investment in RCS MediaGroup
(-€34 million in 2013; -€68 million in 2012) and other investments (€20 million in 2013; €18 million in 2012).
Net gains on disposal of investments totaled €8 million. For 2012, there were net losses on disposal of investments of €91 million, which
related to the write-down of the investment in the SevelNord joint venture.
Restructuring costs of €28 million for 2013 consisted primarily of provisions for Other activities, partially offset by a reversal in restructuring
charges previously recognized for the NAFTA region.
Other unusual expense of €499 million included approximately €390 million in asset write-downs associated with the rationalization of
architectures relating to the new product strategy, particularly for the Alfa Romeo, Maserati and Fiat brands, as well as asset impairments
related to Teksid’s Cast Iron business. In addition, there was a €56 million write-off of the carrying value of the Equity Recapture Agreement
Right following the 1 January 2014 agreement to purchase the minority remaining equity stake in Chrysler from the VEBA Trust(1). Other unusual
items for the year included a €115 million charge related to the June 2013 voluntary safety recall and customer satisfaction action in NAFTA
and a €43 million net charge related to the devaluation of the Venezuelan bolivar (VEF) relative to the U.S. dollar. Those charges were offset by
recognition of a €166 million gain following amendments to Chrysler’s U.S. and Canadian salaried defined benefit pension plans.
EBIT totaled €2,972 million for the year (€3,404 million for 2012, IAS 19 restated). Net of unusuals, EBIT was down 4% year-over-year to
€3,491 million (€3,648 million for 2012, IAS 19 restated).
Net financial expense totaled €1,964 million, an increase of €79 million over 2012. Excluding the gains on the Fiat stock option-related equity
swaps (€31 million for 2013, at their expiration, compared to €34 million for 2012), net financial expense was €76 million higher, largely due
to a higher average net debt level.
Profit before taxes was €1,008 million (€1,519 million for 2012, IAS 19 restated), €511 million lower than the prior year due to the €432 million
decrease in EBIT and higher net financial expense.
Income taxes were a positive €943 million, including a positive one-off of €1,500 million from the recognition of net deferred tax assets related
to Chrysler. Net of this item, there was income tax expense of €557 million (€623 million for 2012), of which €244 million for Fiat excluding
Chrysler primarily related to the taxable income of companies operating outside Italy and employment-related taxes in Italy.
Net profit was €1,951 million (€896 million for 2012, IAS 19 restated). Excluding unusual items and the positive deferred tax impact, there
was a net profit of €943 million for the year (€1,140 million for 2012, IAS 19 restated). On the same basis, Fiat excluding Chrysler reported a
net loss of €911 million (loss of €787 million in 2012).
Profit attributable to owners of the parent totaled €904 million (€44 million for 2012).
(1) The UAW Retiree Medical Benefits Trust, a Voluntary Employees’ Beneficiary Association, is an independently administered trust established to pay health care benefits
for retirees from Chrysler.