FIAT CHRYSLER AUTOMOBILES N.V. LONDON, Oct. 28, 2015 /PRNewswire/ -- FCA (NYSE: FCAU) reported Q3 Net revenues at EUR27.5 billion, up 17% and Adjusted EBIT at EUR1.3 billion, up 35%, driven by strong performance in NAFTA, Ferrari and Components in addition to continued improvement in EMEA. Group recorded one-off after-tax charges of EUR602 million (excluded from Adjusted EBIT) mainly to adjust reserves to reflect current regulatory and recall environment. Net industrial debt was reduced to EUR7.8 billion, down EUR0.2 billion from prior quarter.
-- Worldwide shipments were 1.1 million units, in line with Q3 2014.
Jeep's positive performance continued with worldwide shipments up 27%.
-- Net revenues were EUR27.5 billion, 17% higher than Q3 2014.
-- Adjusted EBIT(1 )was EUR1,303 million, up 35% from EUR968 million in Q3
2014 with NAFTA more than doubling and LATAM returning to profitability
despite continuing poor market conditions.
-- Adjusted net profit(2 )was EUR303 million, compared to EUR230 million in
Q3 2014 while without adjustments there was a Net loss of EUR299 million
compared to a Net profit of EUR188 million in Q3 2014.
-- Net industrial debt was EUR7.8 billion, down EUR0.2 billion from June
30, 2015. Liquidity remained strong at EUR24.9 billion.
-- The Group confirms its full-year guidance as revised upwards in Q2 and
notes that Net industrial debt guidance is adjusted to EUR6.6 - EUR7.1
billion (EUR7.5 - EUR8.0 billion previously) to reflect transactions
completed in connection with the Ferrari IPO.
FIAT CHRYSLER AUTOMOBILES - Highlights
--------------------------------------
Nine months ended Three months ended
September 30, September 30,
------------- -------------
2015 2014 Change (EUR million) 2015 2014 Change
3,402 3,393 9 Total shipments (000s) 1,114 1,099 15
----- ----- --- --------------------- ----- ----- ---
83,092 69,006 14,086 Net revenues 27,468 23,553 3,915
------
2,500 2,157 343 EBIT 360 926 (566)
----- ----- --- ---- --- --- ----
6,745 5,756 989 EBITDA(3) 1,783 2,166 (383)
-----
3,628 2,591 1,037 Adjusted EBIT(1) 1,303 968 335
----- ----- ----- --------------- ----- --- ---
647 647 - Profit/(loss) before taxes (260) 415 (675)
---
126 212 (86) Net profit/(loss) (299) 188 (487)
--- --- --- ----------------- ---- --- ----
853 526 327 Adjusted net profit(2) 303 230 73
--- --- --- --------------------- --- --- ---
0.061 0.132 (0.071) Basic earnings/(loss) per share (EUR) (0.202) 0.143 (0.345)
----- ----- ------ ------
0.542 0.390 0.152 Adjusted basic earnings/(loss) per share (EUR)(1) 0.196 0.177 0.02
----- ----- ----- ------------------------------------------------- ----- ----- ----
0.061 0.130 (0.069) Diluted earnings/(loss) per share (EUR) (0.202) 0.142 (0.344)
----- ----- ------ --------------------------------------- ------ ----- ------
7,845 7,654 (5) 191 Net industrial debt 7,845 8,021 (4) (176)
----- -------- ---
24,877 26,221 (5) (1,344) Total available liquidity 24,877 25,366 (4) (489)
------ --------- ------ ------------------------- ------ --------- ----
_____________________________
(1 )Adjusted EBIT is calculated as EBIT excluding: gains/(losses) on the disposal of investments, restructuring, impairments, asset write-offs and other unusual income/(expenses) that are considered rare or discrete events that are infrequent in nature.
(2 )Adjusted net profit is calculated as Net profit/(loss) excluding post-tax impacts of the same items excluded from Adjusted EBIT: gains/(losses) on the disposal of investments, restructuring, impairments, asset write-offs and other unusual income/(expenses) that are considered rare or discrete events that are infrequent in nature. Adjusted basic EPS is calculated by adjusting Basic EPS for the impact of the same items excluded from Adjusted EBIT. Refer to page 10 for detailed calculation.
(3 )EBIT plus Depreciation and Amortization.
(4 )At June 30, 2015.
(5 )At December 31, 2014.
Net revenues for Q3 2015 were EUR27.5 billion, an increase of EUR3.9 billion, or 17% (+6% at constant exchange rates, or CER) from EUR23.6 billion for Q3 2014. Higher revenues in NAFTA (+35%; +15% CER), EMEA (+13%; +11% CER), Ferrari (+9%; +3% CER), Components (+13%; the same at CER), were partially offset by decreases in LATAM (-30%; -15% CER), APAC (-47%; -49% CER) and Maserati (-21%; -28% CER).
Adjusted EBIT was EUR1,303 million, up EUR335 million (+35%; +15% CER) from Q3 2014. Adjusted EBIT excludes a EUR761 million pre-tax charge for estimated future recall campaign costs for vehicles sold in prior periods in NAFTA due to the Group's change in estimate. Adjusted EBIT also excludes EUR142 million for the write-down of inventory and incremental incentives for vehicles damaged in the Tianjin (China) port explosion on August 12, 2015 (expected to be recovered through insurance).
NAFTA Adjusted EBIT more than doubled from EUR554 million in Q3 2014 to EUR1,186 million primarily driven by higher volumes, improved mix and pricing as well as positive translation impacts, partly offset by increased industrial costs. NAFTA Adjusted EBIT margin continued to improve from 4.2% in Q3 2014 to 6.7% in Q3 2015. For the nine months ended September 30, 2015, NAFTA Adjusted EBIT margin improved to 6.1% from 4.1% for the same period last year and is on track to achieve the full year target of 5.5% to 6.0%. Despite continuing poor market conditions, Adjusted EBIT for LATAM was EUR28 million, returning to profitability. The EUR34 million decrease in Adjusted EBIT for LATAM from Q3 2014 was primarily related to lower volumes, partially offset by favorable net pricing and favorable product mix primarily attributable to the newly launched Jeep Renegade. Adjusted EBIT for APAC was a loss of EUR83 million, a decrease of EUR252 million from Q3 2014 primarily resulting from lower volumes, the disruption in shipments and other effects from the Tianjin port explosion as well as pricing pressure and negative foreign exchange effects. EMEA posted Adjusted EBIT of EUR20 million, an increase of EUR79 million from Q3 2014 due to higher volumes, favorable mix and improved net pricing, partially offset by increased advertising costs.
Net financial expense totaled EUR620 million, EUR109 million higher than in Q3 2014, primarily reflecting an increase in debt levels and interest rates in Brazil, partially offset by interest cost savings resulting from the reduction in overall gross debt and refinancing actions in Q2 2015.
Tax expense totaled EUR39 million, compared to EUR227 million in Q3 2014, mainly due to decreased profit before tax, partially offset by tax losses in jurisdictions where we do not record benefits on tax losses.
Net profit/(loss) for the quarter was a net loss of EUR299 million, compared to a net profit of EUR188 million for Q3 2014. The loss attributable to owners of the parent was EUR306 million compared with a profit of EUR174 million for Q3 2014.
Adjusted net profit for the quarter was EUR303 million, compared with EUR230 million for Q3 2014.
Net industrial debt at September 30, 2015 was EUR7.8 billion, down from EUR8.0 billion at June 30, 2015. The EUR0.2 billion decrease reflects capital expenditures of EUR2.2 billion offset by positive cash flows from operating activities of EUR1.4 billion and EUR1.0 billion of positive foreign exchange effects primarily related to the devaluation of the Brazilian Real.
Total available liquidity was EUR24.9 billion at September 30, 2015, down from EUR25.4 billion at June 30, 2015 primarily reflecting EUR0.7 billion of operating cash absorption, EUR0.3 billion related to negative foreign exchange translation effects offset by a EUR0.5 billion net positive impact related to financing, which includes the draw-down of the EUR0.6 billion new European Investment Bank financing and the repayment of a bond at maturity of EUR0.4 billion.
2015 Outlook
The Group confirms its full-year guidance as revised upwards in Q2:
-- Worldwide shipments at ~ 4.8 million units;
-- Net revenues over EUR110 billion;
-- Adjusted EBIT equal to or in excess of EUR4.5 billion;
-- Adjusted net profit of ~ EUR1.2 billion, with Adjusted basic EPS ~
EUR0.77;
-- Net industrial debt guidance is adjusted to EUR6.6 - EUR7.1 billion
(from EUR7.5 to EUR8.0 billion previously) to reflect transactions
completed in connection with the Ferrari IPO.
Figures do not reflect impact of the previously announced spin-off of Ferrari planned for January 2016.
FIAT CHRYSLER AUTOMOBILES
-------------------------
Net debt and available liquidity
--------------------------------
(EUR million) September 30, 2015 June 30, 2015 December 31, 2014
------------ ------------------ ------------- -----------------
Cash maturities (principal) (30,617) (31,847) (32,892)
Bank debt (12,434) (12,779) (13,120)
--------- ------- ------- -------
Capital market instruments (1) (16,530) (17,107) (17,729)
Other debt (2) (1,653) (1,961) (2,043)
------------- ------ ------ ------
Asset-backed financing (3) (179) (258) (469)
Accruals and other adjustments (4) (347) (121) (305)
--------------------------------- ---- ---- ----
Gross debt (31,143) (32,226) (33,666)
----------
Cash & marketable securities 20,408 21,349 23,050
---------------------------- ------ ------ ------
Derivative assets/(liabilities) 473 45 (233)
Net debt (10,262) (10,832) (10,849)
-------- ------- ------- -------
Industrial activities (7,845) (8,021) (7,654)
---------------------
Financial services (2,417) (2,811) (3,195)
------------------ ------ ------ ------
Undrawn committed credit lines 4,469 4,017 3,171
------------------------------ ----- ----- -----
Total available liquidity 24,877 25,366 26,221
------------------------- ------ ------ ------
(1) Includes bonds and other securities issued in the financial markets.
(2) Includes HCT Notes, arrangements accounted for as a lease under IFRIC 4 - Determining
whether an arrangement contains a lease, and other non-bank financing.
(3) Advances on sale of receivables and securitizations on book.
(4) At September 30, 2015, includes: adjustments for hedge accounting on financial payables
for EUR(50) million (EUR(55) million at June 30, 2015; EUR(67) million at December 31,
2014), current financial receivables from jointly-controlled financial services companies
of EUR32 million (EUR72 million at June 30, 2015; EUR58 million at December 31, 2014) and
accrued net financial charges of EUR(329) million (EUR(138) million at June 30, 2015;
EUR(296) million at December 31, 2014).
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Results by Segment
Three months ended September 30, 2015 and 2014
FIAT CHRYSLER AUTOMOBILES
Net revenues and Adjusted EBIT by segment - Three months ended September 30,
----------------------------------------------------------------------------
Net revenues Adjusted EBIT
------------ -------------
2015 2014 Change (EUR million) 2015 2014 Change
---- ---- ------ ------------ ---- ---- ------
17,704 13,134 4,570 NAFTA 1,186 554 632
------ ------ ----- ----- ----- --- ---
1,515 2,162 (647) LATAM 28 62 (34)
----- ---
842 1,578 (736) APAC (83) 169 (252)
--- ----- ---- ---- --- --- ----
4,611 4,080 531 EMEA 20 (59) 79
----- ---
723 662 61 Ferrari 140 104 36
--- --- --- ------- --- --- ---
516 652 (136) Maserati 12 90 (78)
--- ---
2,348 2,086 262 Components (Magneti 98 59 39
Marelli, Comau, Teksid)
213 200 13 Other (48) (8) (40)
--- --- ---
(1,004) (1,001) (3) Unallocated items and adjustments (50) (3) (47)
------ ------ --- --------------------------------- --- --- ---
27,468 23,553 3,915 Total 1,303 968 335
------ ------ ----- ----- ----- --- ---
Nine months ended September 30, 2015 and 2014
FIAT CHRYSLER AUTOMOBILES
Net revenues and Adjusted EBIT by segment - Nine months ended September 30,
---------------------------------------------------------------------------
Net revenues Adjusted EBIT
------------ -------------
2015 2014 Change (EUR million) 2015 2014 Change
---- ---- ------ ------------ ---- ---- ------
51,067 37,124 13,943 NAFTA 3,114 1,529 1,585
------ ------ ------ ----- ----- ----- -----
4,917 6,315 (1,398) LATAM (116) 169 (285)
3,877 4,597 (720) APAC 29 414 (385)
----- ----- ---- ---- --- --- ----
14,765 13,031 1,734 EMEA 102 (131) 233
2,110 2,011 99 Ferrari 364 289 75
----- ----- --- ------- --- --- ---
1,649 2,039 (390) Maserati 91 210 (119)
7,332 6,240 1,092 Components (Magneti 262 172 90
Marelli, Comau, Teksid)
621 602 19 Other (109) (49) (60)
(3,246) (2,953) (293) Unallocated items and adjustments (109) (12) (97)
------ ------ ---- --------------------------------- ---- --- ---
83,092 69,006 14,086 Total 3,628 2,591 1,037
------ ------ ------ ----- ----- ----- -----
NAFTA
-----
Nine months ended September 30, Three months ended September 30,
------------------------------- --------------------------------
2015 2014 Change (EUR million) 2015 2014 Change
---- ---- ------ ------------ ---- ---- ------
1,995 1,825 170 Shipments (000s) 685 613 72
----- ----- --- --- --- ---
51,067 37,124 13,943 Net revenues 17,704 13,134 4,570
------ ------ ------ ------------ ------ ------ -----
3,114 1,529 1,585 Adjusted EBIT 1,186 554 632
----- ----- ----- ------------- ----- --- ---
Shipments were 685 thousand vehicles (+12%) and sales(1) totaled 674 thousand vehicles (+7%). Market share was 12.4% in the U.S and 14.9% in Canada, both consistent with Q3 2014.
Net revenues were EUR17.7 billion, up 35% (+15% CER) primarily due to volume growth for the Jeep brand as well as favorable foreign currency translation effects.
Adjusted EBIT of EUR1,186 million, compared with EUR554 million in Q3 2014, reflects higher volumes, favorable mix, positive net pricing and a positive translation impact, partially offset by increases in recall accrual rates and product costs for vehicle content enhancements, net of purchasing efficiencies. For the nine months ended September 30, 2015, NAFTA Adjusted EBIT margin improved to 6.1% from 4.1% for the same period last year and is on track to achieve the full year target of 5.5% to 6.0%.
Given the recent increase in both the cost and frequency of recall campaigns, the Group has revised its actuarial methodology for the estimate of future recall costs. As a result, an adjustment of EUR761 million was recognized for the U.S. and Canada related to the change in estimate of future recall campaign costs for vehicles sold in prior periods, which has been excluded from Adjusted EBIT. Q3 2015 Adjusted EBIT includes the effect of increased recall accrual rates for vehicles sold in the period, which amounted to approximately EUR65 million.
_____________________________
(1 )For US and Canada, "Sales" represents sales to end customers as reported by the Group's dealer network.
LATAM
-----
Nine months ended September 30, Three months ended September 30,
------------------------------- --------------------------------
2015 2014 Change (EUR million) 2015 2014 Change
---- ---- ------ ------------ ---- ---- ------
413 610 (197) Shipments (000s) 140 202 (62)
--- --- ---- --------------- --- --- ---
4,917 6,315 (1,398) Net revenues 1,515 2,162 (647)
----- ----- ------ ------------ ----- ----- ----
(116) 169 (285) Adjusted EBIT 28 62 (34)
---- --- ---- ------------- --- --- ---
Shipments were 140 thousand vehicles, a decrease of 31% reflecting continued macroeconomic weakness resulting in poor trading conditions in the region's principal markets. Market share in Brazil was 19.8%, down 160 bps, due to strong competition and pricing pressures, however the Group remained the leader in the market for Q3 with a 500 bps lead over the nearest competitor. In Argentina, market share declined from 14.1% in Q3 2014 to 11.6% in Q3 2015 mainly due to continued import restrictions. Segment market share for the Jeep Renegade in Brazil grew from 13.2% in Q2 2015 to 25.2%.
Net revenues were EUR1,515 million, down 30% (-15% CER) primarily due to reduced shipments, which was partially offset by favorable product mix primarily related to the Jeep Renegade and positive net pricing.
Adjusted EBIT was EUR28 million in Q3 2015, down from EUR62 million in Q3 2014, primarily related to lower volumes and higher input cost due to inflation, partially offset by favorable net pricing and favorable product mix mainly attributable to the Jeep Renegade.
APAC
Nine months ended September 30, Three months ended September 30,
------------------------------- --------------------------------
2015 2014 Change (EUR million) 2015 2014 Change
---- ---- ------ ------------ ---- ---- ------
123 163 (40) Shipments (000s) 30 55 (25)
--- --- --- --------------- --- --- ---
3,877 4,597 (720) Net revenues 842 1,578 (736)
----- ----- ---- ------------ --- ----- ----
29 414 (385) Adjusted EBIT (83) 169 (252)
--- --- ---- ------------- --- --- ----
Shipments (excluding JVs) totaled 30 thousand vehicles, down 45%, primarily due to declines driven by the impact of the Tianjin (China) port explosion, strong competition from local producers in China, and reduced shipments in Australia due to pricing actions. Group retail sales (including JVs) were 14 thousand vehicles lower than Q3 2014 at 48 thousand vehicles, driven by reduction in market for imported vehicles and interruption of supply due to the Tianjin port being blocked following the explosion at the port in early August.
Net revenues were EUR842 million, down 47% (49% lower at CER), primarily as a result of the decrease in shipments and the incremental incentives for vehicles related to the Tianjin port explosion.
Adjusted EBIT was negative EUR83 million, a decrease of EUR252 million from Q3 2014 driven by lower volumes as well as foreign exchange effects. Adjusted EBIT excludes EUR142 million for the write-down of inventory and incremental incentives for vehicles damaged in the Tianjin (China) port explosion (expected to be recovered through insurance).
EMEA
----
Nine months ended September 30, Three months ended September 30,
------------------------------- --------------------------------
2015 2014 Change (EUR million) 2015 2014 Change
---- ---- ------ ------------ ---- ---- ------
843 763 80 Shipments (000s) 250 218 32
--- --- --- --------------- --- --- ---
14,765 13,031 1,734 Net revenues 4,611 4,080 531
------ ------ ----- ------------ ----- ----- ---
102 (131) 233 Adjusted EBIT 20 (59) 79
--- ---- --- ------------- --- --- ---
Passenger car and light commercial vehicle (LCV) shipments totaled 250 thousand units, up 15% over Q3 2014. Passenger car shipments were up 16% to 197 thousand units and LCVs were up 10% to 53 thousand units. European passenger car market share (EU28+EFTA) was up 20 bps to 5.7% (up 90 bps to 28.3% in Italy). For LCVs, European market share(2) (EU28+EFTA) was down at 10.7% (up 100 bps to 44.5% in Italy).
Net revenues were EUR4,611 million, up 13% (+11% CER) resulting from higher volumes and favorable product mix driven by the all-new Jeep Renegade and Fiat 500X.
Adjusted EBIT for Q3 2015 was EUR20 million, compared with negative EUR59 million for Q3 2014. The improvement was primarily attributable to increased shipments and more favorable product mix, reflecting the continued success of the Fiat 500 family and the Jeep brand and cost efficiencies, which were partially offset by higher costs for U.S. imported vehicles due to a stronger U.S. Dollar and increased marketing costs.
_____________________________
(2 )Due to unavailability of market data for Italy, the figures reported are an extrapolation and discrepancies with actual data could exist.
Ferrari
Nine months ended September 30, Three months ended September 30,
2015 2014 Change (EUR million) 2015 2014 Change
5,643 5,280 363 Shipments (units) 1,949 1,612 337
2,110 2,011 99 Net revenues 723 662 61
364 289 75 Adjusted EBIT 140 104 36
--- --- --- ------------- --- --- ---
Net revenues were EUR723 million, reflecting an increase of EUR61 million (+9%; +3% CER) from Q3 2014, resulting from higher volumes mainly driven by sales of the new 488 GTB and 458 Speciale A as well as the California T.
Adjusted EBIT of EUR140 million, compared with EUR104 million in Q3 2014, primarily reflects an increase in volumes, improved product mix and favorable foreign currency transaction effects.
Maserati
Nine months ended September 30, Three months ended September 30,
------------------------------- --------------------------------
2015 2014 Change (EUR million) 2015 2014 Change
---- ---- ------ ------------ ---- ---- ------
22,503 26,428 (3,925) Shipments (units) 6,916 8,896 (1,980)
------ ------ ------ ---------------- ----- ----- ------
1,649 2,039 (390) Net revenues 516 652 (136)
----- ----- ---- ------------ --- --- ----
91 210 (119) Adjusted EBIT 12 90 (78)
--- --- ---- ------------- --- --- ---
Net revenues totaled EUR516 million, down 21% (28% lower at CER) from Q3 2014, primarily due to decreased volumes resulting from weaker segment demand in the U.S. and China and unfavorable product mix.
Adjusted EBIT decreased to EUR12 million from EUR90 million in Q3 2014 primarily due to lower volumes, unfavorable mix and an increase in industrial costs.
Components
Nine months ended September 30, Three months ended September 30,
------------------------------- --------------------------------
2015 2014 Change (EUR million) 2015 2014 Change
---- ---- ------ ------------ ---- ---- ------
Magneti Marelli
---------------
5,419 4,770 649 Net revenues 1,744 1,604 140
----- ----- --- ------------ ----- ----- ---
216 146 70 Adjusted EBIT 84 48 36
--- --- --- ------------- --- --- ---
Comau
-----
1,480 1,032 448 Net revenues 480 335 145
----- ----- --- ------------ --- --- ---
47 29 18 Adjusted EBIT 16 9 7
--- --- --- ------------- --- --- ---
Teksid
------
493 480 13 Net revenues 141 152 (11)
--- --- --- ------------ --- --- ---
(1) (3) 2 Adjusted EBIT (2) 2 (4)
--- --- --- ------------- --- --- ---
COMPONENTS
----------
7,332 6,240 1,092 Net revenues (*) 2,348 2,086 262
----- ----- ----- --------------- ----- ----- ---
262 172 90 Adjusted EBIT 98 59 39
--- --- --- ------------- --- --- ---
(*) Net of eliminations
------------------------
Magneti Marelli
Net revenues were EUR1,744 million, a 9% increase over Q3 2014, reflecting positive performance in the lighting, electronic systems and powertrain businesses.
Adjusted EBIT was EUR84 million, an increase of EUR36 million (+75%) from Q3 2014 primarily related to higher volumes, cost containment actions and efficiencies.
Comau
Net revenues were EUR480 million, a 43% increase from Q3 2014, primarily due to body assembly, powertrain and robotics businesses.
Adjusted EBIT increased by EUR7 million from Q3 2014 to EUR16 million primarily due to increased volumes.
Teksid
Net revenues were EUR141 million, a 7% decrease from Q3 2014, primarily attributable to a 13% decrease in cast iron business volumes, partially offset by an 18% increase in aluminum business volumes.
Adjusted EBIT was negative EUR2 million primarily from lower volumes from the cast iron business.
Brand activity in the quarter
The new Fiat 500 was revealed on July 4, exactly eight years after the iconic Fiat 500 was first launched and the Fiat Toro, a new sport compact pick-up truck designed specifically for South America and to be built in Pernambuco, was previewed in September.
Fiat Professional was named "Van Fleet Manufacturer of the Year" for the second year running in the U.K. at the eighth edition of the prestigious annual Commercial Fleet Awards on September 24, recognized for its commitment to the highest standards in terms of operation, innovation and safety. The brand was also named "Green Fleet Manufacturer of the Year". In addition, Fiat Fiorino was awarded "City Van of the Year" for the fourth time, Doblò Cargo was awarded the "Small Van of the Year" award and Ducato received a commendation in the "Large Panel Van of the Year" category.
Comau unveiled its newest robot, Racer3, at the Shanghai National Exhibition and Convention Center in July. The Racer3 is a powerful, high-speed, 6-axis articulated robot built from high-strength aluminum that can be easily mounted on benches, walls, ceilings or on inclined supports. With it being the fastest in its class, the Racer 3 is meant to address the growing demand for fast, cost-effective robotic automation within small to medium-sized enterprises and emerging countries.
Reconciliation of Adjusted EBIT
FIAT CHRYSLER AUTOMOBILES - EBIT to Adjusted EBIT reconciliation
Nine months ended Three months ended
September 30, September 30,
------------- -------------
2015 2014 (EUR million) 2015 2014
---- ---- ------------ ---- ----
2,500 2,157 EBIT 360 926
761 - Change in estimate for future recall campaign costs 761 -
80 98 Venezuela charge resulting from change in exchange rate - 6
81 - NHTSA consent order - -
142 - Tianjin (China) port explosion 142 -
- (11) Gains on the disposal of investments - (3)
25 23 Restructuring costs 13 15
15 17 Impairment expense 11 6
24 307(1) Other 16 18
--- ----- ----- --- ---
1,128 434 Total adjustments 943 42
----- --- ----------------- --- ---
3,628 2,591 Adjusted EBIT 1,303 968
(1) Primarily includes the EUR495 million charge in Q1 2014 recognized in connection with the UAW
Memorandum of Understanding entered into by FCA US in January 2014 partly offset by the EUR223
million gain on the re-measurement to fair value of the previously exercised options on
approximately 10% of FCA US' equity interest in connection with FCA's acquisition of the remaining
41.5 percent ownership interest in FCA US that was previously not owned.
Reconciliation of Adjusted Net profit
Adjusted Net Profit
Nine months ended Three months ended
September 30, September 30,
------------- -------------
2015 2014 (EUR million) 2015 2014
---- ---- ---- ----
126 212 Net profit/(loss) (299) 188
1,128 434 Adjustments (as above) 943 42
(401) (120) Total tax impact on adjustments (341) -
---- ---- ---
727 314 Total adjustments, net of taxes 602 42
--- --- ------------------------------- --- ---
853 526 Adjusted net profit 303 230
Calculation of Adjusted Basic EPS
Basic EPS - as adjusted
Nine months ended Three months ended
September 30,
September 30,
-------------
2015 2014 2015 2014
---- ---- ---- ----
0.061 0.132 Basic earnings/(loss) per share (EUR/share) (0.202) 0.143
727 314 Adjustments, net of taxes (EUR million) 602 42
0.481 0.258 Total impact of adjustments on Basic EPS (EUR/share) 0.398 0.034
0.542 0.390 Adjusted Basic EPS (EUR/share) 0.196 0.177
----- ----- ------------------------------ ----- -----
1,510,274 1,216,815 Weighted average number of shares (thousand) 1,511,370 1,218,007
*********
This document, and in particular the section entitled "2015 Outlook", contains forward-looking statements. These statements may include terms such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "outlook", "prospects", "plan", "intend", or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on the Group's current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: the Group's ability to reach certain minimum vehicle sales volumes; developments in global financial markets and general economic and other conditions; changes in demand for automotive products, which is highly cyclical; the Group's ability to enrich the product portfolio and offer innovative products; the high level of competition in the automotive industry; the Group's ability to expand certain of the Group's brands internationally; changes in the Group's credit ratings; the Group's ability to realize anticipated benefits from any acquisitions, joint venture arrangements and other strategic alliances; the Group's ability to integrate its operations; potential shortfalls in the Group's defined benefit pension plans; the Group's ability to provide or arrange for adequate access to financing for the Group's dealers and retail customers; the Group's ability to access funding to execute the Group's business plan and improve the Group's business, financial condition and results of operations; various types of claims, lawsuits and other contingent obligations against the Group; disruptions arising from political, social and economic instability; material operating expenditures in relation to compliance with environmental, health and safety regulation; developments in labor and industrial relations and developments in applicable labor laws; increases in costs, disruptions of supply or shortages of raw materials; exchange rate fluctuations, interest rate changes, credit risk and other market risks; our ability to achieve the benefits expected from the proposed spin-off of Ferrari; political and civil unrest; earthquakes or other disasters and other risks and uncertainties.
Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company's financial results, is included in the Company's reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB.
On October 28, 2015, at 4p.m. GMT, management will hold a conference call to present the 2015 third quarter results to financial analysts and institutional investors. The call can be followed live and a recording will be available later on the Group website (http://www.fcagroup.com/en-us/pages/home.aspx). The supporting document will be made available on the website prior to the call.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fca-board-of-directors-meeting-2015-third-quarter-results-300167814.html
SOURCE Fiat Chrysler Automobiles
