Chrysler 2000 Annual Report Download - page 66

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Report on Operations – Components
The Sector’s interest in net income came to 135 million euros
(105 million euros in 1999).
Cash flow improved to 353 million euros (310 million euros
in 1999).
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In July 2000, in order to achieve the high level of flexibility
it needs when negotiating major agreements with top
international partners, Fiat carried out a tender offer for all
Magneti Marelli shares, acquiring 100% of Magneti Marelli’s
capital stock.
RESULTS FOR THE YEAR
Net revenues totaled 4,451 million euros in 2000, or 9.6%
more than in 1999 (+6.1% on a comparable foreign exchange
and consolidation basis).
Operating income declined to 55 million euros (1.2% of
revenues) from the 108 million euros earned in 1999 (2.7%
of revenues). The main reason for this decrease was a change
in the scope of consolidation. When the data are restated on
a comparable consolidation basis, operating income is higher
by approximately 19 million euros.
Depreciation and amortization increased from 203 million
euros in 1999 to 214 million euros in 2000. Investments in
research and development were also higher, rising to 213
million euros (185 million euros in 1999).
Net income, which reflects gains on the divestiture of
non-strategic assets amounting to 247 million euros after
the costs incurred to restructure certain businesses, totaled
139 million euros, up from 107 million euros in 1999.
International expansion, another important facet of Magneti
Marelli’s strategy, has enabled the Sector to meet the global
needs of its customers.
Magneti Marelli’s strategy is based on three key guidelines:
innovating, focusing on businesses that supply complete
systems with a high technology content, and lengthening the value
chain by developing innovative services.
Revenues by business unit
Powertrain systems
Suspension systems
Interior and bodywork systems
Electronic systems
Aftermarket and services
29%
9%
24%
15%
23%
Revenues by customer
Fiat Group
Other carmakers
44%
56%
Magneti Marelli worldwide
Rest Rest of
Italy of Europe the world Total
Production facilities 21 20 17 58
R&D centers 6 9 7 22
Clean room – Electronic component assembly line.