THE FIAT GROUP IN

58
Domenico Bordone,
Magneti Marelli’s Chief Executive Officer.
Components
Magneti Marelli was founded in 1919 by Fiat and Ercole
Marelli. In 1967, Fiat took over this company, transforming
it into a global center for the production of automotive
components.
Magneti Marelli is focusing its operations on its core
product lines while divesting non-strategic assets.
OPERATING PERFORMANCE
In 2001, consistent with a strategy that calls for an
increased focus on its core businesses, the Sector launched
a restructuring plan that will help it enhance the value of its
different operations and maximize the benefits of any strategic
alliances and/or divestitures.
In pursuit of these goals, Magneti Marelli took the following
actions in 2001:
❚ It acquired control of the Automotive Lighting joint venture,
in which it now holds a 74.9% interest.
❚ In March 2001, it finalized the sale of its Climate Control
Division to Denso, a Japanese Group. This divestiture
had been announced in November 2000.
❚ It completed its corporate restructuring plan,
concentrating its businesses into homogeneous units
that will be in a better position to enter into agreements
in the future.
Magneti Marelli
Highlights
(in millions of euros) 2001 2000 1999
Net revenues 4,073 4,451 4,062
Operating income (loss) (74) 55 108
as a % of revenues (1.8) 1.2 2.7
Net income before minority interest 82 139 107
Cash flow 289 353 310
Capital expenditures 240 231 209
Research and development 227 213 185
Net invested capital 1,073 1,131 1,289
Number of employees 24,228 25,975 25,613
Revenues by geographical
region of destination
Employees by geographical
region
0 50 100%
RESULTS FOR THE YEAR
Italy
Rest of Europe
Rest of the world
Weak demand, particularly during the second half of 2001,
caused the consolidated net revenues of Magneti Marelli to
decline to 4,073 million euros, or 5.2% less than in 2000 on
a comparable consolidation and foreign exchange basis.
The operating loss came to 74 million euros (operating income of
14 million euros in 2000 on a comparable consolidation basis and
net of non-recurring items). Lower unit sales, turmoil in the
electronics market and a deterioration of the euro/dollar exchange
rate contributed to this negative result. The return on sales fell
from a positive 1.2% in 2000 to a negative 1.8% in 2001.
Depreciation and amortization totaled 207 million euros (214
million euros in 2000), while research and development outlays
increased to 227 million euros (213 million euros in 2000).
Net income, which reflects a net capital gain of 355 million
euros from the sale of the Climate Control Division, amounted
to 82 million euros (139 million euros in 2000).
The Sector’s interest in net income came to 84 million
euros (135 million euros in 2000).
Cash flow declined from 353 million euros in 2000 to
289 million euros in 2001.