THE FIAT GROUP IN

merger related profit improvements of about 300 million euros
during 2001, which brought the cumulative synergies to about
480 million euros at the end of 2001, against a plan objective
of about 670 million euros in four years (about 600 million
dollars).
Depreciation and amortization totaled 553 million euros,
compared to 562 million euros in 2000. The depreciation
and amortization amount for 2001 includes 178 million euros
for amortization of the goodwill from the Case acquisition.
Capital expenditures amounted to 615 million euros (447
million euros in 2000).
Research and development expenses amounted to 341 million
euros, against 366 million euros in 2000.
The result for the year was a net loss of 291 million euros,
up from a net loss of 754 million euros a year before. The
Sector’s interest in the net result was a loss of 296 million
euros (764 million euros was the Sector’s interest in net
loss in 2000).
The results include extraordinary restructuring charges of
79 million euros, which are part of CNH’s merger integration
plan. These restructuring charges were accounted for under
the Fiat Group accounting principles and reflect the costs
of industrial restructuring actions that are expected to be
completed within the next one to two years. The amounts
recognized under the Fiat Group accounting principles differ
from those accounted for under U.S. GAAP, which were
adopted by CNH Global to present its consolidated financial
results in the United States.
Revenues by business unit
63%
30%
7%
Agricultural equipment
Construction equipment
Financial services
CNH Global is the world’s leading manufacturer of agricultural
equipment and ranks among the top producers of construction
equipment and providers of related financial services in the world.
Fiat-Hitachi D 180 dozer.
Cash flow was a positive 262 million euros, as compared
to a negative cash flow of 192 million euros in 2000. This
improvement is due primarily to the smaller net loss incurred
in 2001 (291 million euros, compared with 754 million euros
in 2000) since the amount charged off for depreciation and
amortization was roughly the same in both years.
CNH worldwide
Rest Rest of
Italy of Europe the world Total
Production facilities 5 12 25 42
R&D centers 4 6 9 19
Dealers 282 4,388 7,030 11,700
The Sector is currently implementing a plan to integrate and
streamline the industrial operations of New Holland and Case.
Under this plan, a few facilities in North America and Europe will
be closed and manufacture of the respective products transferred
to other plants, some product lines will be reallocated to different
production units.
Report on Operations – CNH Global
51