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

  • Record Q3 driven by continued strong performance in NAFTA and Components with significant improvement in APAC, Maserati and EMEA

  • LATAM at nearly break-even with continued difficult market conditions

  • NAFTA margin increased to 7.6% from 6.7%

  • Maserati returned to double-digit margin at 11.8%

  • Increase primarily driven by strong operating performance

  • Net financial expenses down €93 million to €528 million primarily driven by gross debt reduction

  • Tax expense in Adjusted net profit decreased to €232 million from €332 million primarily due to the increased use of tax credits

NET INDUSTRIAL DEBT

2016 GUIDANCE

  • Cash flow generation from operating activities of €0.8 billion, including negative impact of €1.2 billion of normal seasonal working capital increase

  • Capital expenditures of €2.0 billion, in line with prior year

  • Strong available liquidity at €23.2 billion

Group raises full-year guidance due to strong year-to-date operating performance:

  • Net revenues > €112 billion confirmed

  • Adjusted EBIT (6) raised to > €5.8 billion from > €5.5 billion

  • Adjusted net profit(6) raised to > €2.3 billion from > €2.0 billion

  • Net industrial debt

  1. Combined shipments include all shipments by the Group's unconsolidated joint ventures, whereas consolidated shipments only include shipments from the Group's consolidated subsidiaries

  2. 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

    1. 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

    2. 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.

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