FCA reports record third quarter results with Adjusted EBIT of €1.5 billion, up 29%, Adjusted Net Profit of €740 million and Net Profit of €606 million. Group Adjusted EBIT margin of 5.6%, up 130 bps. Full-year guidance is raised.
Worldwide combined shipments(1) of 1,123 thousand units, substantially in line with prior year; Jeep combined shipments(1) up 3%
Net revenues of €26.8 billion, in line with Q3 2015
Adjusted EBIT increased 29% to €1,500 million, with improvement in all segments except LATAM; EBIT was €1,341 million as compared with €225 million in Q3 2015
Adjusted Net Profit increased over three-fold to €740 million; Net Profit of €606 million, up €1.0 billion from prior year
Net industrial debt increased €1.0 billion from June 2016 mainly due to normal working capital seasonality
Market share in U.S. increased to 12.5%, up 30 bps, and in Europe to 6.1%, up 40 bps; remained market leader in Brazil with 18.6% market share
FIAT CHRYSLER AUTOMOBILES - Financial Results
Nine months ended September 30 Three months ended September 30
2016 2015 (2) Change (€ million, except as otherwise noted) 2016 2015 (2) Change
3,487 | 3,481 | 6 | - % | Combined shipments(1) ('000 units) | 1,123 | 1,138 | (15) | (1)% |
3,327 | 3,396 | (69) | (2)% | Consolidated shipments(1) ('000 units) | 1,066 | 1,112 | (46) | (4)% |
81,299 | 81,181 | 118 | - % | Net revenues | 26,836 | 26,798 | 38 | - % |
3,708 | 2,147 | 1,561 | +73 % | EBIT | 1,341 | 225 | 1,116 | +496 % |
4,507 | 3,264 | 1,243 | +38 % | Adjusted EBIT(3) | 1,500 | 1,163 | 337 | +29 % |
1,405 | (103) | 1,508 | n.m.(7) | Net profit/(loss) | 606 | (387) | 993 | n.m.(7) |
1,977 | 613 | 1,364 | +223 % | Adjusted net profit(3) | 740 | 210 | 530 | +252 % |
(0.075) | 0.965 | n.m.(7) | Diluted earnings/(loss) per share (EPS) (€) | (0.255) | 0.643 | n.m.(7) | ||
0.890 | 0.388 | |||||||
1.256 | 0.399 | 0.857 | +215 % | Adjusted diluted EPS(3) (€) | 0.474 | 0.140 | 0.334 | +239 % |
6,514 | 5,049 (5) | 1,465 | Net industrial debt(3) | 6,514 | 5,474 (4) | 1,040 | ||
25,292 | 27,786 (5) | (2,494) | Debt | 25,292 | 25,374 (4) | (82) | ||
23,197 | 24,557 (5) | (1,360) | Available liquidity | 23,197 | 24,748 (4) | (1,551) |
ADJUSTED EBIT | ADJUSTED NET PROFIT |
|
|
NET INDUSTRIAL DEBT | 2016 GUIDANCE |
| Group raises full-year guidance due to strong year-to-date operating performance:
|
Combined shipments include all shipments by the Group's unconsolidated joint ventures, whereas consolidated shipments only include shipments from the Group's consolidated subsidiaries
The Group's results have been re-presented to exclude Ferrari, consistent with Ferrari's classification as a discontinued operation for the year ended December 31, 2015; refer to page 8 for a reconciliation of these results to amounts previously reported (3) Refer to page 7 for reconciliations of Adjusted EBIT to EBIT, Adjusted net profit to Net profit, Adjusted diluted EPS to Diluted EPS and page 8 for a reconciliation of Net industrial debt to Debt (4) At June 30, 2016 (5) At December 31, 2015 (6) These supplemental financial measures are non-GAAP; guidance is not provided on the most directly comparable IFRS financial statement line item as the income or expense excluded from Adjusted EBIT and Adjusted net profit in accordance with our policy are, by definition, not predictable and uncertain (7) Number is not meaningful
Results by segment
Net revenues and Adjusted EBIT by segment
Net revenues Adjusted EBIT
Three months ended September 30 Three months ended September 30
2016 2015 (€ million) 2016 2015
16,810
17,704
NAFTA
1,281
1,186
1,491
1,515
LATAM
(16)
28
861
842
APAC
21
(83)
5,070
4,611
EMEA
104
20
873
516
Maserati
103
12
2,390
2,348
Components
112
98
(659)
(738)
Other activities, unallocated items and adjustments
(105)
(98)
26,836
26,798
Total
1,500
1,163
NAFTA Three months ended September 30 Change
2016 2015 Actual CER
Shipments (thousands of units)
627
685
Net revenues (€ million)
16,810
17,704 (5)% (5) %
Adjusted EBIT (€ million)
1,281
1,186 +8 % +8 %
Adjusted EBIT margin
7.6%
6.7% + 90 bps
(8)%
Adjusted EBIT margin up 90 bps to 7.6%. U.S.
market share(8) up 30 bps
Shipments decrease primarily due to planned reduction in Chrysler 200 and Dodge Dart volumes in connection with NAFTA capacity realignment plan: U.S. -45 thousand units (-8%), Canada -9 thousand units (-13%), Mexico -4 thousand units (-13%)
Net revenues decrease due to lower shipments, with higher fleet mix, partially offset by favorable vehicle mix
Adjusted EBIT increase primarily due to positive net pricing (net of negative FX transaction impact from CAD and MXN), purchasing efficiencies and lower warranty costs, partially offset by lower revenues, increase in product costs for content enhancements and higher manufacturing costs
Adjusted EBIT excludes net charges of €149 million, primarily relating to estimated costs associated with a planned recall for which there is ongoing litigation with a component supplier; although FCA believes the component supplier has responsibility for the recall, no recovery has been recognized as of September 30, 2016 in accordance with applicable accounting guidance as a resolution with the supplier has not yet been reached
Sales data represents sales to retail and fleet customers and limited deliveries to Group-related persons. Sales by dealers to customers are reported through a new vehicle delivery system.
LATAM Three months ended September 30 Change
Net revenues (€ million)
1, 491
1,515
(2)%
(7) %
Shipments (thousands of units)
111
140
(21)%
Net revenues (€ million)
1, 491
1,515
(2)%
(7) %
Adjusted EBIT (€ million)
( 16 )
28
n.m.(7)
n.m.(7)
Adjusted EBIT margin
( 1.1 )%
1.8%
n.m.(7)
2016 2015 Actual CER
Remained market leader in Brazil, with market share of 18.6%
Decrease in shipments reflects poor market conditions in Brazil due to continued macroeconomic weakness, partly offset by improvement in Argentina: Brazil -30 thousand units (-26%), Argentina +2 thousand units (+8%)
Decrease in Net revenues with lower shipments, partially offset by favorable vehicle mix mainly from the all-new Fiat Toro
Adjusted EBIT decrease primarily as a result of higher input costs driven by inflation and foreign exchange effects
APAC Three months ended September 30 Change
2016 2015 Actual CER
Shipments (thousands of units)
22
30
Net revenues (€ million)
861
842 +2 % +2 %
Adjusted EBIT (€ million)
21
(83) n.m.(7) n.m.(7)
Adjusted EBIT margin
2.4%
(9.9)% n.m.(7)
(27)%
Jeep sales up 76% driven by ongoing transition to localized production in China
Decrease in shipments due to transition to local Jeep production in China, through JV with GAC; combined shipments (including JV produced units) up 69% to 61 thousand units
Net revenues slight increase primarily as a result of favorable vehicle mix in China and increased sales of components to the China JV, offsetting lower shipments
Adjusted EBIT increase mainly due to favorable mix on imported vehicles, lower net price due to incentives for completion of the sell-out of discontinued and other imported vehicles and improved results from China JV
EMEA Three months ended September 30 Change
2016 2015 Actual CER
Shipments (thousands of units)
295
250
Net revenues (€ million)
5,070
4,611 +10 % +12 %
Adjusted EBIT (€ million)
104
20 +420 % +414 %
Adjusted EBIT margin
2.1%
0.4% +170 bps
+18 %
Continued profit and margin improvement together with market share growth
European market share (EU28+EFTA) for passenger cars up 40 bps to 6.1% (up 70 bps to 28.9% in Italy) and up 30 bps to 11% for light commercial vehicles (LCVs)(9) (up 70 bps to 45.2% in Italy)
Passenger car shipments up 16% to 229 thousand units and shipments of LCVs up 24% to 66 thousand units
Net revenues increase primarily due to higher volumes and favorable vehicle mix mainly driven by all- new Fiat Tipo family
Adjusted EBIT increase mainly driven by higher Net revenues, purchasing efficiencies, improved results from joint ventures and favorable FX, partially offset by higher advertising to support new product launches, as well as higher research and development and manufacturing costs
MASERATI Three months ended September 30 Change
2016 2015 Actual CER
Shipments (units)
10,656
6,916
Net revenues (€ million)
873
516 +69 % +73 %
Adjusted EBIT (€ million)
103
12 +758 % +779 %
Adjusted EBIT margin
11.8%
2.3% +950 bps
+54 %
Return to double- digit Adjusted EBIT margin at 11.8%
Increase in shipments driven by launch of all-new Levante, partially offset by decrease in Ghibli, with significant increases in all regions: China (+109%), North America (+42%) and Europe (+67%)
Net revenues increase primarily due to higher shipments, positive net pricing and favorable vehicle and market mix mainly from all-new Levante
Adjusted EBIT improvement resulting from increase in Net revenues, partially offset by increase in industrial costs and commercial launch activities
Due to unavailability of market data for LCVs in Italy, the figures reported are an extrapolation and discrepancies with actual data could exist
Fiat Chrysler Automobiles NV published this content on 25 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 October 2016 11:32:03 UTC.
Original documenthttps://www.fcagroup.com/en-US/media_center/fca_press_release/FiatDocuments/2016/october/FCA_2016_THIRD_QUARTER_RESULTS.pdf
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