annual report - FIAT SpA

METALLURGICAL PRODUCTS
Teksid
OPERATING PERFORMANCE
After the global economic crisis, which affected Highlights
2009 performance, demand increased
moderately during 2010 although in several
areas it remained below pre-crisis levels.
(€ million)
Net revenues
2010
776
2009
578
The rates of increase in Teksid's two principal
Trading profit/(loss) 17 (12)
business segments varied from market to Operating profit/(loss) (*) 17 (14)
market. In the passenger car and light
Investments in tangible and intangible assets
commercial vehicle market, global production
31 33
was up over 2009, with the increase in the Total R&D expenditure (**) 2 2
NAFTA region more significant than in Europe.
Production levels were also strong in Brazil. The
No. of employees at year end 7,275 6,194
heavy vehicle market was up sharply in all (*) Includes restructuring costs and other unusual income/(expense)
regions, with a significant increase in Europe
compared with the very low levels experienced in
2009.
(**) Includes capitalized R&D and R&D charged directly to the income statement
With the upturn in economic conditions, the sector achieved a significant improvement in financial results and revenues
were up 34.3% for the year.
The Cast Iron business unit recorded a 21.8% increase in volumes over 2009, with the most notable improvement in
the heavy vehicle segment, particularly in Europe (+18.1%) and the NAFTA region (+47.2%), where the heavy segment
is the sector's primary area of focus, and in Brazil (+19.9%). Revenues for the business unit were up 35.9%, driven by
higher volumes as well as higher pricing to recover increases in raw material costs.
Teksid’s Cast Iron business unit also operates in China through Hua Dong Teksid Automotive Foundry Co. Ltd., a joint
venture with the SAIC group which is accounted for under the equity method. In 2010, the company recorded a
decrease in delivery volumes of 9.1%, associated with the decrease in exports to Italy.
The Aluminum business unit posted a 15.3% increase in volumes and a 26.5% increase in revenues, principally driven
by higher volumes and price increases to recover higher raw material costs.
Report on Operations Teksid 83