Chrysler 2000 Annual Report Download - page 67

DATI SIGNIFICATIVIHIGHLIGHTS
Piero Maritano,
Comau’s Chief Executive Officer.
(in millions of euros) 2000 1999 1998
Net revenues 2,440 1,693 843
Operating income 87 43 (1)
As a % of revenues 3.6 2.5 (0.1)
Income (Loss) before minority interest 6(8) (6)
Cash flow 63 30 12
Capital expenditures 36 26 14
Research and development 20 20 14
Net invested capital 486 485 165
Number of employees 17,636 16,943 7,103
Revenues by geographical region
of destination
Employees by geographical region
30%
40%
30%
47%
34%
19%
Rest of the worldRest of EuropeItaly
Fiat started regular and organized production of machine
tools in 1935. Over the years, by acquiring and absorbing
other companies, Comau broadened its product range, becoming
one of the few “total” suppliers of automation systems for the
automotive industry.
OPERATING PERFORMANCE
In 2000, capital spending by carmakers was earmarked
primarily for the introduction of new models and the
installation of the respective production equipment, with
special emphasis on the need to lower invested capital.
New orders for contract work booked by the Sector totaled
1,670 million euros, or about 11% less than in 1999. This
decline was due to the impact of a downturn in the U.S.
business cycle, which was offset only in part by increased
orders in Europe and the Mercosur countries.
Major contracts signed during the period include two large orders
for bodywork welding systems for the European factories
of a U.S. carmaker, and mechanical assembly lines and two
painting systems for a French automotive manufacturer.
At the end of 2000, the order portfolio totaled 1,416 million
euros, down from 1,762 million euros at December 31, 1999.
Comau Service experienced continued growth, as the
operating units established in 1999 became operational and
took on new outsourcing assignments for the maintenance
of production facilities, most of which belonging to Fiat Auto,
Iveco and CNH Global. Additional operating companies were
established in Belgium, Spain and the United Kingdom.
At the end of April 2000, upon the successful completion of a
tender offer launched a month earlier, Fiat S.p.A. increased its
interest in Comau’s capital stock to 100%. It then transferred
its investment in Comau S.p.A. to Comau B.V. (which already
held the positions acquired in connection with the Pico
acquisition), officially making it the Sector’s new holding
company. On June 30, 2000, Comau S.p.A. changed its
name to Comau Systems S.p.A.
During 2000, the Sector launched a plan to streamline its
operations and integrate the activities of Comau and Pico.
The purpose of this program is to increase efficiency, lower
costs, exploit industrial and commercial synergies, and
strengthen Comau’s competitive position.
In particular, Pico’s integration enabled the Sector to book
orders from U.S. carmakers for products that are manufactured
in Europe and start promising maintenance service contracts.
In April 2000, as part of its effort to increase sales by entering
new markets, Comau Systems acquired an 85% interest in
Production Systems – COMAU