annual report - FIAT SpA

Discontinued Operations (Fiat Industrial) 2010 2009 (*)
(€ million) Consolidated
Industrial
Activities
Financial
Services Consolidated
Industrial
Activities
Report on Operations Financial Review – Fiat Group
Financial
Services
Net revenues 21,342 20,235 1,379 17,968 16,916 1,280
Cost of sales 17,979 17,131 1,120 15,549 14,756 1,021
Selling, general and administrative 1,793 1,657 136 1,636 1,503 133
Research and development 418 418 - 388 388 -
Other income/(expense) (60) (60) - (73) (74) 1
TRADING PROFIT/(LOSS) 1,092 969 123 322 195 127
Gains/(losses) on disposal of investments 3 3 - 1 1 -
Restructuring costs 58 58 - 144 141 3
Other unusual income/(expense) (20) (20) - (198) (198) -
OPERATING PROFIT/(LOSS) 1,017 894 123 (19) (143) 124
Financial income/(expense) (505) (505) - (401) (401) -
Result from investments (**) 64 76 (12) (50) (31) (19)
PROFIT/(LOSS) BEFORE TAXES 576 465 111 (470) (575) 105
Income taxes 198 150 48 33 (4) 37
PROFIT/(LOSS) FROM DISCONTINUED
OPERATIONS 378 315 63 (503) (571) 68
Result from intersegment investments
PROFIT/(LOSS) FROM DISCONTINUED
- 63 5 - 68 (16)
OPERATIONS
(*) 2009 figures have been reclassified, as required by IFRS 5
378 378 68 (503) (503) 52
(*) This item includes income from investments as well as impairment (losses)/reversals on non-intersegment investments accounted for under the equity
method
Industrial Activities
For 2010, net revenues for Industrial Activities were approximately €55 billion, up 12.4% over the previous year, when
market conditions were particularly weak.
Industrial Activities for Fiat post Demerger reported revenues of €35.7 billion, representing a 9.7% increase over 2009.
Revenues for the Automobiles business were up 6.1%, with favorable currency movements and LCV volumes more
than offsetting the fall in passenger cars sales for FGA in Europe. Components and Production Systems achieved a
23.6% increase in revenues on the back of higher demand.
Industrial Activities for Fiat Industrial benefited from significant volume recoveries for all businesses, with revenues up
19.6% to €20.2 billion. By business, CNH achieved a 19.1% year-on-year improvement (+13.3% in US dollar terms),
Iveco was up 15.9% and FPT Industrial 52.8%.
Industrial Activities reported a trading profit of €2,016 million, increasing €1,126 million over the €890 million figure for
2009.
For Fiat post Demerger, trading profit improved by €352 million to €1,047 million and for Fiat Industrial trading profit
was up €774 million over 2009 to €969 million.
The general improvement was attributable to higher volumes (with the exception of passenger cars for FGA), a better
product mix and continued focus on costs and industrial efficiencies.
Operating profit for Industrial Activities came in at €1,821 million for 2010, compared with €172 million for 2009. The
increase was due to higher trading profit (up €1,126 million) and a €523 million reduction in net unusual expenses.
For Fiat post Demerger, operating profit was €927 million (up €612 million, €352 million of which was due to higher
trading profit), whereas Fiat Industrial went from an operating loss of €143 million for 2009 to an operating profit of
€894 million for 2010, principally driven by an improvement in trading profit.
51