annual report - FIAT SpA

the remaining 50% in Fiat-GM Powertrain Polska. Discontinued Operations accounted for €3 million (€1 million in
2009), primarily related to the gain on the disposal of the interest in the joint venture LBX Company LLC by the
Agricultural and Construction Equipment sector.
Restructuring costs for Fiat Group totaled €176 million (€312 million in 2009). For Continuing Operations,
restructuring costs of €118 million primarily related to Fiat Group Automobiles (€90 million) and Magneti Marelli (€26
million), compared to a total of €168 million for 2009, principally attributable to Magneti Marelli (€62 million), Fiat Group
Automobiles (€54 million) and Fiat Powertrain (€21 million). For Discontinued Operations, restructuring costs totaled
€58 million and primarily related to FPT Industrial (€33 million) and Iveco (€19 million), compared to a total of €144
million in 2009, mainly related to CNH – Case New Holland (€87 million), FPT Industrial (€35 million) and Iveco (€22
million).
Fiat Group reported other unusual expense of €34 million (€391 million for 2009), €14 million of which was
attributable to Continuing Operations, compared with €193 million for 2009 that included write-downs by the
Automobiles business of certain investments in platforms and architectures related to the strategic realignment with
Chrysler Group LLC, costs related to the acquisition of the interest in Chrysler Group LLC, in addition to other nonrecurring
expenses and impairment losses recognized as a consequence of the global economic crisis. For
Discontinued Operations, other unusual income/(expense) was a negative €20 million (a negative €198 million in 2009,
mainly attributable to Iveco for non-recurring expenses and impairment losses recognized as a consequence of the
global economic crisis).
Following is a summary of the principal components of operating profit, broken down by sector:
Trading
profit/(loss)
Gains/(losses) on
the disposal of
investments
Restructuring
costs
Other unusual
income/(expense)
Operating
profit/(loss)
(€ million) 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Fiat Group Automobiles 607 470 - - 90 54 (2) (199) 515 217
Maserati 24 11 - - - - - - 24 11
Ferrari 303 238 - 2 - - (1) 5 302 245
Fiat Powertrain 140 104 10 - (3) 21 19 (6) 172 77
Components (Magneti Marelli) 98 25 1 (3) 26 62 - - 73 (40)
Metallurgical Products (Teksid) 17 (12) - - - 4 - 2 17 (14)
Production Systems (Comau) (6) (28) - 1 - 5 - - (6) (32)
Other Businesses and Eliminations (71) (72) 1 3 5 22 (30) 5 (105) (86)
Total Continuing Operations 1,112 736 12 3 118 168 (14) (193) 992 378
Agricultural and Construction
Equipment (CNH)
Trucks and Commercial Vehicles
755 337 4 1 5 87 - - 754 251
(Iveco)
270 105 - - 19 22 (11) (173) 240 (90)
FPT Industrial 65 (131) - - 33 35 (3) (25) 29 (191)
Eliminations and Other 2 11 (1) - 1 - (6) - (6) 11
Total Discontinued Operations 1,092 322 3 1 58 144 (20) (198) 1,017 (19)
Total Fiat Group 2,204 1,058 15 4 176 312 (34) (391) 2,009 359
Profit/(loss)
Net financial expense for 2010 totaled €905 million for the Group (€753 million for 2009) with the increase primarily
due to the cost of maintaining a higher level of liquidity. For Continuing Operations, net financial expense was €400
million (€352 million for 2009) and included a €111 million gain in the mark-to-market value of two stock option-related
equity swaps (a €117 million gain for 2009). For Discontinued Operations, net financial expense totaled €505 million
(€401 million for 2009).
Investment income totaled €178 million, up from the €27 million figure for 2009 mainly due an increase in earnings for
joint venture companies. For Continuing Operations, investment income totaled €114 million (€77 million in 2009). For
Report on Operations Financial Review – Fiat Group
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