THE FIAT GROUP IN

Aluminum plant in Sylacauga, Alabama (USA). Policast cylinder block for the GM L 850 engine.
Operating income was 15 million euros (0.9% of revenues),
down from 101 million euros in 2000 (5.4% of revenues).
This decrease is the combined result of lower unit sales, an
unfavorable price/cost ratio and startup costs incurred by new
operations, offset only in part by improvements in efficiency.
Depreciation and amortization totaled 109 million euros
(105 million euros in 2000), and research and development
outlays amounted to 27 million euros (29 million euros in 2000).
Revenues by business unit
17%
34%
49%
Magnesium
Aluminum
Cast iron
Revenues by customer
Fiat Group
Other carmakers
20%
80%
Concurrent with its international expansion, Teksid has drastically
changed its product mix. Over the last four years, the contribution of
heavier metal products (steel and cast iron) has decreased from 58%
to 34%, while production of aluminum and magnesium components
has increased, as the Sector focused on higher technology products.
The net loss for the year came to 125 million euros, as opposed
to net income of 8 million euros in 2000. The Sector’s interest
in the net loss was 126 million euros (interest in net income
of 0.1 million euros in 2000). This negative performance also
reflects the impact of 72 million euros in extraordinary
restructuring costs (47 million euros more than in 2000).
Cash flow was negative by 16 million euros (positive cash
flow of 113 million euros in 2000).
Teksid worldwide
Rest Rest of
Italy of Europe the world Total
Production facilities 5 8 12 25
R&D centers 5 2 3 10
Teksid’s presence in the international markets has grown at a rapid
pace during the last 10 years, in response to the need to serve
customers from facilities close to their locations throughout the
world. The most significant increases in production capacity
occurred in Europe, the NAFTA and Mercosur countries, and China.
Report on Operations – Teksid
57