9. OPERATING SEGMENTS
The Tyre segment is the only operating segment for which separate information has been reported at December 31, 2011. There was no change from December 31, 2010.
The structure of the operating segments reflects the organisation of the Group’s internal reporting.
Segment results for 2011 are as follows:
(in thousands of euro) | ||||
TYRE | OTHER ACTIVITIES | ELIMINATIONS AND ADJUSTMENTS | TOTAL 2011 | |
---|---|---|---|---|
Sales to third parties | 5,600,259 | 54,534 | - | 5,654,793 |
Sales to Group companies | 1,380 | 16,734 | (18,114) | - |
Total net sales | 5,601,639 | 71,268 | (18,114) | 5,654,793 |
Gross operating profit ° | 857,731 | (50,930) | - | 806,801 |
Depreciation and amortisation | (213,808) | (11,127) | - | (224,935) |
Operating income (loss) | 643,923 | (62,057) | - | 581,866 |
Net income (loss) from equity investments | (1,303) | 160,670 | (176,685) | (17,318) |
Financial income (expenses) | (90,074) | 634 | - | (89,440) |
Net income (loss) before income taxes | 552,546 | 99,247 | (176,685) | 475,108 |
Income taxes | (181,166) | 146,708 | - | (34,457) |
Net income (loss) from continuing operations | 371,380 | 245,955 | (176,685) | 440,651 |
Net income (loss) from discontinued operations | - | |||
Net income (loss) | 440,651 | |||
° of which impairment of property, plant and equipment and intangible assets | (222) | (5,760) | - | (5,982) |
Segment results for 2010 are as follows:
(in thousands of euro) | ||||
TYRE | OTHER ACTIVITIES | ElIMINATIONS AND ADJUSTMENTS | TOTAl 2010 | |
---|---|---|---|---|
Sales to third parties | 4,771,141 | 77,277 | - | 4,848,418 |
Sales to Group companies | 860 | 17,529 | (18,389) | - |
Total net sales | 4,772,001 | 94,806 | (18,389) | 4,848,418 |
Gross operating profit (°) | 661,135 | (32,144) | - | 628,991 |
Depreciation and amortisation | (208,039) | (13,189) | - | (221,228) |
Operating income (loss) | 453,096 | (45,333) | - | 407,763 |
Net income (loss) from equity investments | 277 | 244,506 | (221,326) | 23,457 |
Financial income (expenses) | (66,392) | 599 | - | (65,793) |
Net income (loss) before income taxes | 386,981 | 199,772 | (221,326) | 365,427 |
Income taxes | (134,429) | (2,929) | - | (137,358) |
Net income (loss) from continuing operations | 252,552 | 196,843 | (221,326) | 228,069 |
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Net income (loss) from discontinued operations | (223,840) | |||
Net income (loss) | 4,229 | |||
(°) of which impairment of property, plant and equipment and intangible assets | (7,369) | - | - | (7,369) |
Please refer to note 39 for a breakdown of the result of discontinued operations in 2010.
The assets, liabilities and capital expenditure broken down by segment at December 31, 2011 are as follows:
(in thousands of euro) | ||||
TYRE | OTHER ACTIVITIES | ELIMINATIONS AND ADJUSTMENTS | TOTAL 12/31/2011 | |
---|---|---|---|---|
Segment assets | 5,061,992 | 2,813,601 | (2,607,970) | 5,267,623 |
Investments in associates | 11,708 | 120,450 | 7,955 | 140,113 |
Total allocated assets | 5,073,700 | 2,934,051 | (2,600,015) | 5,407,736 |
Unallocated assets | 1,588,070 | |||
Total assets | 6,995,806 | |||
Segment liabilities | 2,517,772 | 321,611 | (79,350) | 2,760,033 |
Unallocated liabilities | 2,044,195 | |||
Total liabilities | 4,804,228 | |||
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Purchase of property, plant and equipment | 611,069 | 6,717 | - | 617,786 |
Purchase of intangible assets | 92,461 | 1,699 | - | 94,160 |
The assets, liabilities and capital expenditure broken down by segment at December 31, 2010 are as follows:
(in thousands of euro) | ||||
TYRE | OTHER ACTIVITIES | ELIMINATIONS AND ADJUSTMENTS | TOTAL 12/31/2010 | |
---|---|---|---|---|
Segment assets | 4,127,756 | 274,010 | (42,596) | 4,359,170 |
Investments in associates | 13,590 | 133,494 | 5,843 | 152,927 |
Total allocated assets | 4,141,346 | 407,504 | (36,753) | 4,512,097 |
Unallocated assets | 1,106,703 | |||
Total assets | 5,618,800 | |||
Segment liabilities | 1,954,560 | 271,044 | (22,696) | 2,202,908 |
Unallocated liabilities | 1,387,909 | |||
Total liabilities | 3,590,817 | |||
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Purchase of property, plant and equipment | 402,091 | 30,978 | - | 433,069 |
Purchase of intangible assets | 2,948 | 1,880 | - | 4,828 |
Segment assets consist mainly of property, plant and equipment and intangible assets, leased assets, inventories, trade receivables and other receivables. Financial receivables, cash equivalents, other financial assets, securities held for trading and both current and deferred tax assets are excluded.
Segment liabilities mainly comprise trade payables and other payables, advances from customers and provisions for contingent liabilities and employee benefits. Financial payables and both current and deferred tax liabilities are excluded.
The purchase of property, plant and equipment relates mainly to completion of the new plants in Mexico and China, to increase the production mix, improve the qualitative capability of plants and improve occupational health and safety and environmental management at the factories.
The purchase of intangible assets mainly consists of goodwill (determined on a provisional basis) resulting from acquisition of the company OJSC Kirov Tyre Plant and LLC Amtel-Russian Tyres, with head office in Russia.
Net sales by geographical area are shown below. They are allocated on the basis of the country in which the customer is resident.
(in thousands of euro) |
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2011 | 2010 | |||
---|---|---|---|---|
Europe: | ||||
- Italy | 479,838 | 8.49% | 485,450 | 10.01% |
- Rest of Europe | 1,844,080 | 32.61% | 1,503,531 | 31.01% |
Nafta | 561,320 | 9.93% | 477,394 | 9.85% |
Central and South America | 1,915,467 | 33.87% | 1,632,044 | 33.66% |
Asia/Pacific | 352,815 | 6.24% | 286,922 | 5.92% |
Middle East/Africa | 501,273 | 8.86% | 463,077 | 9.55% |
5,654,793 | 100.00% | 4,848,418 | 100.00% |
Non-current assets by geographical area are shown below. They are allocated on the basis of the country where these assets are located.
(in thousands of euro) | ||||
12/31/2011 | 12/31/2010 | |||
---|---|---|---|---|
Europe: | ||||
- Italy | 437,500 | 13.29% | 395,275 | 13.99% |
- Rest of Europe | 622,837 | 18.93% | 535,884 | 18.96% |
Nafta | 163,728 | 4.98% | 58,191 | 2.06% |
Central and South America | 628,540 | 19.10% | 589,762 | 20.87% |
Asia/Pacific | 310,560 | 9.44% | 216,597 | 7.66% |
Middle East/Africa | 212,428 | 6.45% | 195,697 | 6.93% |
Non-current assets not allocated | 915,321 | 27.81% | 834,461 | 29.53% |
3,290,915 | 100.00% | 2,825,867 | 100.00% |
The non-current assets shown in the table above consist of property, plant and equipment and intangible assets, excluding goodwill. The unallocated non-current assets pertain to goodwill (see note 11).
- General Information
- Directors' Report
- Consolidated Financial Statements