annual report - FIAT SpA

Components and Production Systems
In 2010, Components and Production Systems nearly tripled trading profit to €249 million (trading margin of 2.3%),
up €160 million from 2009, driven primarily by higher volumes and improved product mix.
(€ million) 2010 2009 Change
Fiat Powertrain 140 104 36
Components (Magneti Marelli) 98 25 73
Metallurgical Products (Teksid) 17 (12) 29
Production Systems (Comau) (6) (28) 22
Total 249 89 160
Trading margin (%) 2.3 1.0
� Fiat Powertrain closed 2010 with a trading profit of €140 million, compared to €104 million for 2009. This
improvement was primarily attributable to a more favorable sales mix and increased purchasing and manufacturing
efficiencies.
� Magneti Marelli reported trading profit of €98 million for 2010 compared with €25 million for 2009. The
improvement in trading performance was driven by increased sales volumes, combined with cost containment
actions and manufacturing efficiencies. However, the sector had to manage the unfavorable impact of supply
issues resulting from an excess in market demand for electronic systems.
� Teksid closed the year with a trading profit of €17 million (trading loss of €12 million for 2009), reflecting the
positive impact of volume increases.
� Comau reduced its trading loss to €6 million for 2010, compared with a trading loss of €28 million for 2009. The
improvement was attributable to the increase in activity levels and cost containment actions.
Other Businesses
In 2010, Other Businesses reported a trading loss of €71 million, including eliminations and consolidation
adjustments, compared to a €72 million loss for 2009.
Discontinued Operations
Agricultural and Construction Equipment
CNH – Case New Holland had a trading profit of €755 million (trading margin of 6.3%) for 2010, up €418 million from
the €337 million (trading margin of 3.3%) for 2009, when performance was severely impacted by difficult trading
conditions in the construction equipment segment. The improvement resulted from higher volumes, increased industrial
utilization in the Americas, a favorable shift in product mix to higher powered tractor and combine segments, as well as
better pricing and cost reductions from prior year restructuring initiatives. This positive performance was tempered by
continued low demand levels for agricultural equipment in Western Europe, increased raw material prices and new
product launch costs, primarily in the construction equipment sector during the fourth quarter.
Trucks and Commercial Vehicles
Iveco posted a trading profit of €270 million for the year (2009: €105 million), with a trading margin of 3.3% (2009:
1.5%). The improvement was primarily driven by higher sales volumes and production efficiencies.
FPT Industrial
FPT Industrial closed 2010 with a trading profit of €65 million. The improvement over the €131 million trading loss
reported for 2009 was principally attributable to a significant increase in sales volumes.
Operating profit/(loss)
For 2010, Fiat Group recorded operating profit of €2,009 million (€359 million in 2009), which included €195 million
(€699 million in 2009) in net unusual expenses, mainly due to restructuring costs (€176 million), inclusive of related
asset write-offs. Operating profit for Continuing Operations was €992 million (€378 million for 2009): the increase
reflected the improvement in trading profit (+€376 million) and a reduction in net unusual expense (€120 million for
2010 compared with a €358 million charge for 2009). Operating profit for Discontinued Operations was €1,017 million:
the increase over the €19 million loss for 2009 was due to improved trading performance (+€770 million) and a
reduction in net unusual expense (€75 million for 2010 compared with a €341 million charge for 2009).
Net gains on the disposal of investments totaled €15 million (€4 million in 2009), with €12 million attributable to
Continuing Operations (€3 million in 2009), including €10 million relating to the accounting impact of the acquisition of
Report on Operations Financial Review – Fiat Group
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