Chrysler 2000 Annual Report Download - page 40

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Report on Operations – Analysis of the Financial Position and Operating Results of the Fiat Group and Fiat S.p.A.
❚Itedi’s operating income, which totaled 10 million euros
compared with 17 million euros in 1999, suffered from the
loss of revenues from the technical publishing operations
of Satiz, which were sold at the end of 1999.
Result for the fiscal year
Income before taxes for the whole year totaled 1,050 million
euros, slightly more than in 1999 (1,024 million euros).
Important capital gains realized in 2000, thanks to dynamic
portfolio management and the finalization of the agreement
with General Motors, had a significant impact on the non-
operating items of the statement of operations and compensated
for higher financial expenses resulting from the debt assumed
to carry out important acquisitions over the last several years.
In 2000, the balance of financial and investment income
and expenses totaled 719 million euros in net expenses,
compared with a balance of 97 million euros in net expenses
for 1999.
A total of 914 million euros in net extraordinary income was
earned in 2000, significantly higher than that realized in 1999
(333 million euros).
Extraordinary income in 2000 totaled 2,757 million euros,
due in large measure to the capital gain of 1,779 million
euros generated during the third quarter by General Motors’
purchase of a 20% interest in Fiat Auto at a price higher
than the corresponding stockholders’ equity value.
The other extraordinary gains of approximately 900 million
euros came largely from the capital gains realized from the
disposal of Group assets, which were sold as part of its
portfolio streamlining program and generated net gains of
approximately 700 million euros. The most significant of these
gains stemmed from the sale of the Lubricants (347 million
euros) and Rearview Mirror (46 million euros) Divisions of
Magneti Marelli and from the sale of Fiat Ferroviaria (106
million euros) and Telexis/Atlanet (133 million euros), the latter
pursuant to agreements with Acea Telefonica for the creation
of the telecommunications company Atlanet.
Extraordinary expenses totaled 1,843 million euros, about
1.5 billion euros of which were for industrial reorganization
and streamlining, as well as other measures to strengthen
the asset base of certain Group Sectors. These measures
largely applied to activities located abroad, especially those
of Fiat Auto and CNH.
Consolidated net income before minority interest rose
to 578 million euros (506 million euros in 1999), partially as
a result of lower taxes, which decreased from 518 million
euros in 1999 to 472 million euros in 2000.
Income taxes for the 2000 fiscal year included 269 million
euros in current and deferred taxes (317 million euros in 1999)
and 203 million euros for IRAP, the regional tax on production
activity in Italy (201 million euros in 1999).
The Group’s interest in net income, which amounted to 664
million euros was almost double the 353 million euros realized
in the previous year, due to changes in the interest held by
minority stockholders in certain Group Sectors.
As a result of the increase in the Group's interest in net
income, net income per share has increased considerably
from 0.62 euros in 1999 to 1.19 euros in 2000.
Balance sheet
As required under Legislative Decree No. 127/91, a detailed
analysis of the Group’s balance sheet, which is presented in
accordance with the statutory format for consolidated financial
statements, is provided in the Notes to the Consolidated
Financial Statements.
In the following table, the Group’s consolidated balance sheet
has been reclassified and presented in a condensed format,
showing its main components according to their destination
and breaking them down between Industrial and Insurance
Activities.
Working capital
At the end of 2000, the Group’s consolidated working capital
totaled 1,630 million euros, up from 898 million euros at the
end of 1999. On a comparable consolidation and exchange
Net Income
(in millions of euros)
200019991998
Minority
Group
916
295
506
153
353
506
664
578
(86)
621