Chrysler 2000 Annual Report Download - page 45

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Statement of operations
The statement of operations for the fiscal year shows net
income of 692 million euros, compared with 396 million
euros in 1999.
The following table contains a breakdown of net income:
(in millions of euros) 2000 1999
Investment income 756 608
Adjustments to the carrying
value of investments (7) (210)
Net financial expenses (53)15
Cost of personnel and
services, less revenues (70) (15)
Net extraordinary income 350 81
Income taxes (284) (83)
Net income 692 396
Investment income amounted to 756 million euros (608
million euros in 1999). It consists of dividends, including the
respective tax credits, paid by subsidiaries and associated
companies.
A breakdown of the dividends earned in 2000 and 1999 is
provided in the Notes to the Financial Statements of Fiat S.p.A.
Adjustments to the carrying value of investments in 1999
refer to the writedown of the carrying value of Fiat Auto S.p.A.
Net financial expenses totaled 53 million euros, compared
with net financial income of 15 million euros in 1999. The
increase of 68 million euros in expenses over 1999 is due
mainly to the increase in net indebtedness resulting from
the equity investments discussed above.
The cost of personnel and services, less revenues, totaled
70 million euros (15 million euros in 1999). The net increase
of 55 million euros in costs over 1999 is due mainly to the
extraordinary gains realized in the previous fiscal year on the
sale of almost all real estates. In particular, the cost of
personnel and services came to 176 million euros,
compared with 174 million euros in 1999. The Company’s
staff averaged 240 employees (including 25 seconded to
the Group’s principal companies) as against 245 in 1999
(including 26 seconded employees). Revenues totaled 106
million euros, down from 159 million euros in the previous
fiscal year. They include royalties from the license to use the
Fiat trademark, computed as a percentage of the sales of the
individual Group companies, and fees for services rendered
by management personnel.
The main component of net extraordinary income was
the gain realized on the disposal of Magneti Marelli S.p.A.
shares (370 million euros), net of extraordinary expenses
for employee retirement benefits and other non-recurring
expenses for employee performance bonuses (22 million
euros).
In 1999, the main components of extraordinary income
were the gains realized on the disposal of 30% of IN.TE.SA.
S.p.A. (32 million euros) and 0.46% of Banco Central Hispano
Americano S.A. (41 million euros).
Income taxes totaled 284 million euros, compared with
83 million euros in 1999.
Taking into account tax credits on dividends, which are
reflected in investment income (263 million euros in 2000),
net taxes payable totaled 21 million euros (compared with
net tax receivables of 41 million euros in 1999).
Net Income
(in millions of euros)
2000
692
19991998
396
408