Worldwide shipments were 1.2 million units, in line with Q2 2014, reflecting strong performance in NAFTA and EMEA, partly offset by continued weak market conditions in LATAM. Jeep's positive performance continued with worldwide shipments up 27%.
Net revenues increased 25% to €29.2 billion.
Adjusted EBIT1 was €1,525 million, up 58% from €968 million in Q2 2014, with increases in NAFTA and EMEA, partially offset by decreases in LATAM and APAC. NAFTA margin improved to 7.7%.
Adjusted net profit2 was €450 million, more than doubling compared to €204 million in Q2 2014.
Net industrial debt was €8.0 billion, down €0.6 billion from March 31, 2015. Liquidity remained strong at €25.4
billion.
The Group revised upwards its full-year guidance.
FIAT CHRYSLER AUTOMOBILES - Highlights
Six months ended June 30, Three months ended June 30,
2015 2014 Change (€ million) 2015 2014 Change
2,288 | 2,294 (6) Total shipments (000s) | 1,193 | 1,181 12 |
55,624 | 45,453 10,171 Net revenues | 29,228 | 23,328 5,900 |
2,140 | 1,231 909 EBIT | 1,348 | 961 387 |
4,962 | 3,590 1,372 EBITDA3 | 2,773 | 2,152 621 |
2,325 | 1,623 702 Adjusted EBIT1 | 1,525 | 968 557 |
907 | 232 675 Profit before taxes | 721 | 455 266 |
425 | 24 401 Net profit | 333 | 197 136 |
550 | 296 254 Adjusted net profit2 | 450 | 204 246 |
0.264 | (0.012) 0.276 Basic EPS (€) | 0.212 | 0.143 0.069 |
0.347 | 0.212 0.135 Adjusted basic EPS (€)1 | 0.289 | 0.149 0.14 |
0.264 | (0.012) 0.276 Diluted EPS (€) | 0.212 | 0.142 0.07 |
8,021 | 7,654(5) 367 Net industrial debt | 8,021 | 8,607(4) (586) |
25,366 | 26,221(5) (855) Total available liquidity | 25,366 | 25,203(4) 163 |
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 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 March 31, 2015.
5 At December 31, 2014.
NAFTA more than doubled its performance to €1,327 million (€595 million in Q2 2014) driven by higher volumes, improved net pricing and a positive translation impact, partly offset by increased industria l costs. NAFTA margin continued to improve from 4.9% in Q2 2014 to 7.7% in Q2 2015. For the six months ended June 30, 2015, NAFTA margin improved to 5.8% from 4.1% for the same period last year and is now within the 5.5% - 6.0% target set for the full year. Adjusted EBIT for LATAM decreased by
€142 million to negative €79 million, reflecting lower volumes due to weak market conditions, costs for the start-up of the Pernambuco plant and costs for the Jeep Renegade commercial launch, partially offset by favorable net pricing. Excluding the costs of the Pernambuco start-up and Jeep Renegade launch, the LATAM results would have been break-even for the quarter. Adjusted EBIT for APAC was
€47 million, a decrease of €63 million from Q2 2014 as a result of lower volumes and unfavorable net pricing, primarily due to challenging market conditions in China and foreign exchange effects from the Australian Dollar, partially offset by reduced marketing costs. EMEA's Adjusted EBIT was €57 million compared to break-even in Q2 2014 resulting from increased volumes and favorable mix, partially offset by the negative foreign currency transaction impact on vehicles imported from NAFTA.
Adjusted EBIT excludes net charges of €177 million for Q2 2015 compared to €7 million for Q2 2014. The net charges for Q2 2015 are primarily composed of an €80 million charge related to the adoption of the Venezuelan government's Marginal Currency System, or SIMADI exchange rate, due to the continuing deterioration of the economic conditions in Venezuela and an €81 million charge resulting from a consent order agreed with the U.S. National Highway Traffic Safety Administration (NHTSA).
in profit before taxes.
Net profit for the quarter was €333 million, compared to €197 million for Q2 2014. Profit attributableto owners of the parent was €320 million compared with €175 million for Q2 2014.
Adjusted net profit for the quarter was €450 million, compared with €204 million for Q2 2014. Net industrial debt at June 30, 2015 was €8.0 billion, down from €8.6 billion at March 31, 2015. The€0.6 billion decrease primarily reflects positive cash flows from operating activities of €3.1 billion, partially offset by capital expenditures of €2.2 billion.
Total available liquidity was €25.4 billion at June 30, 2015, in line with March 31, 2015, with €0.7 billion of negative foreign exchange translation effects partially offsetting the positive cash flow for the period. 2The Group revised upwards its full-year guidance:
Worldwide shipments at ~4.8 million units (from 4.8 to 5.0 million unit range);
Net revenues over €110 billion (from ~€108 billion);
Adjusted EBIT equal to or in excess of €4.5 billion (from €4.1 to €4.5 billion range);
Adjusted net profit in €1.0 to €1.2 billion range, with Adjusted basic EPS in €0.64 to €0.77 range
(unchanged);
Net industrial debt in €7.5 billion to €8.0 billion range (unchanged).
Figures do not include any impacts for the previously announced capital transactions regarding Ferrari.
FIAT CHRYSLER AUTOMOBILES |
Net debt and available liquidity |
(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 June 30, 2015, includes: adjustments for hedge accounting on financial payables for €(55) million (€(63) million at March 31, 2015; €(67) million at December 31, 2014), current financial receivables from jointly-controlled financial services companies of €72 million (€54 million at March 31, 2015; €58 million at December 31, 2014) and accrued net financial charges of €(138) million (€(346) million at March 31, 2015; €(296) million at December 3 1, 2014). |
Three months ended June 30, 2015 and 2014
FIAT CHRYSLER AUTOMOBILES
Net revenues and Adjusted EBIT by segment - Three months ended June 30,
Net revenues Adjusted EBIT
2015 2014 Change (€ million) 2015 2014 Change
17,186 | 12,258 4,928 NAFTA | 1,327 | 595 732 |
1,851 | 2,188 (337) LATAM | (79) | 63 (142) |
1,523 | 1,522 1 APAC | 47 | 110 (63) |
5,470 | 4,610 860 EMEA | 57 | - 57 |
766 | 729 37 Ferrari | 124 | 105 19 |
610 | 738 (128) Maserati | 43 | 61 (18) |
2,549 | Components (Magneti 2,073 476 Marelli, Comau, Teksid) | 96 | 65 31 |
211 | 201 10 Other | (52) | (28) (24) |
(938) | Unallocated items and (991) 53 adjustments | (38) | (3) (35) |
29,228 | 23,328 5,900 Total | 1,525 | 968 557 |
Six months ended June 30, 2015 and 2014
FIAT CHRYSLER AUTOMOBILES
Net revenues and Adjusted EBIT by segment - Six months ended June 30,
Net revenues Adjusted EBIT
2015 2014 Change (€ million) 2015 2014 Change
33,363 | 23,990 9,373 NAFTA | 1,928 | 975 953 |
3,402 | 4,153 (751) LATAM | (144) | 107 (251) |
3,035 | 3,019 16 APAC | 112 | 245 (133) |
10,154 | 8,951 1,203 EMEA | 82 | (72) 154 |
1,387 | 1,349 38 Ferrari | 224 | 185 39 |
1,133 | 1,387 (254) Maserati | 79 | 120 (41) |
4,984 | Components (Magneti 4,154 830 Marelli, Comau, Teksid) | 164 | 113 51 |
408 | 402 6 Other | (61) | (41) (20) |
(2,242) | Unallocated items and (1,952) (290) adjustments | (59) | (9) (50) |
55,624 | 45,453 10,171 Total | 2,325 | 1,623 702 |
Six months ended June 30, Three months ended June 30,
2015 2014 Change (€ million) 2015 2014 Change
1,310 | 1,212 98 Shipments (000s) | 677 | 627 50 |
33,363 | 23,990 9,373 Net revenues | 17,186 | 12,258 4,928 |
1,928 | 975 953 Adjusted EBIT | 1,327 | 595 732 |
Shipments were 677 thousand vehicles (+8%) and sales1 totaled 682 thousand vehicles (+5%). Market share was 12.4% in the U.S (up 30 bps from Q2 2014) and 15.0% in Canada (down 30 bps).
1 For US and Canada, "Sales" represents sales to end customers as reported by the Group's dealer network.
LATAM
Six months ended June 30, Three months ended June 30,
2015 2014 Change (€ million) 2015 2014 Change
273 | 408 (135) Shipments (000s) | 138 | 203 (65) |
3,402 | 4,153 (751) Net revenues | 1,851 | 2,188 (337) |
(144) | 107 (251) Adjusted EBIT | (79) | 63 (142) |
resulting from the adoption of the SIMADI exchange rate due to the continuing deterioration of the economic conditions in Venezuela.
Six months ended June 30, Three months ended June30,
2015 2014 Change (€ million) 2015 2014 Change
93 | 108 (15) Shipments (000s) | 46 | 54 (8) |
3,035 | 3,019 16 Net revenues | 1,523 | 1,522 1 |
112 | 245 (133) Adjusted EBIT | 47 | 110 (63) |
Six months ended June 30, Three months ended June 30,
2015 2014 Change (€ million) 2015 2014 Change
593 | 545 48 Shipments (000s) | 322 | 286 36 |
10,154 | 8,951 1,203 Net revenues | 5,470 | 4,610 860 |
82 | (72) 154 Adjusted EBIT | 57 | - 57 |
Passenger car and light commercial vehicle (LCV) shipments totaled 322 thousand units, up 13% over Q2 2014. Passenger car shipments were up 13% to 258 thousand units and LCVs were up 12% to 64 thousand units. European passenger car market share (EU28+EFTA) was up 30 bps to 6.4% (up 70 bps to 28.6% in Italy). For LCVs, European market share2 (EU28+EFTA) was flat at 13.0% (up 60 bps to
45.1% in Italy).
product mix driven by the all-new Fiat 500X and Jeep Renegade.
Adjusted EBIT for Q2 2015 was €57 million, compared with break-even results for the same quarter in
2014. The improvement was primarily attributable to increased shipments and more favorable product mix, reflecting the continued success of the Fiat 500 family and Jeep brand, specifically from the Fiat
500X and Jeep Renegade and cost efficiencies, which were partially offset by higher costs for U.S. imported vehicles due to a weaker Euro 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.
6Six months ended June 30, Three months ended June 30,
2015 2014 Change (€ million) 2015 2014 Change
3,694 | 3,668 26 Shipments (units) | 2,059 | 1,936 123 |
1,387 | 1,349 38 Net revenues | 766 | 729 37 |
224 | 185 39 Adjusted EBIT | 124 | 105 19 |
Six months ended June 30, Three months ended June 30,
2015 2014 Change (€ million) 2015 2014 Change
15,587 | 17,532 (1,945) Shipments (units) | 8,281 | 9,491 (1,210) |
1,133 | 1,387 (254) Net revenues | 610 | 738 (128) |
79 | 120 (41) Adjusted EBIT | 43 | 61 (18) |
Components
Six months ended June 30, Three months ended June 30,
2015 2014 Change (€ million) 2015 2014 Change
Magneti Marelli | |||
3,675 | 3,166 509 Net revenues | 1,868 | 1,592 276 |
132 | 98 34 Adjusted EBIT | 76 | 55 21 |
Comau | |||
1,000 | 697 303 Net revenues | 532 | 336 196 |
31 | 20 11 Adjusted EBIT | 20 | 11 9 |
Teksid | |||
352 | 328 24 Net revenues | 172 | 166 6 |
1 | (5) 6 Adjusted EBIT | - | (1) 1 |
COMPONENTS | |||
4,984 | 4,154 830 Net revenues (*) | 2,549 | 2,073 476 |
164 | 113 51 Adjusted EBIT | 96 | 65 31 |
(*) Net of eliminations
Magneti Marelli
Net revenues were €1,868 million, a 17% increase over Q2 2014, reflecting positive performance in the lighting, electronic systems and powertrain businesses. Adjusted EBIT was €76 million, an increase of €21 million (+38%) from Q2 2014 primarily related to higher volumes and the benefit of cost containment actions and efficiencies, partially offset by start-up costs related to the Pernambuco plant.Comau
Net revenues were €532 million, a 58% increase from Q2 2014, primarily due to body assembly(previously body welding) and robotics businesses.
Adjusted EBIT increased by €9 million from Q2 2014 to €20 million primarily due to increased volumesand favorable mix.
Teksid
Net revenues were €172 million, a 4% increase over Q2 2014, primarily attributable to an 18% increasein aluminum business volumes, offset by a 7% decrease in cast iron business volumes.
Adjusted EBIT was break-even, compared with negative €1 million in Q2 2014 primarily from increasedvolumes from the aluminum business and favorable foreign exchange rate effects.
8Brand activity in the quarter
Giulia, the eagerly anticipated all-new model of Alfa Romeo with the legendary Quadrifoglio logo, was unveiled to the international press at the newly renovated Alfa Romeo Historic Museum ("La Macchina del Tempo") on June 24, the 105th anniversary date of the founding of Alfa Romeo in Milan, marking the start of a new chapter in the history of this legendary brand.
The new Fiat Aegea compact sedan with its significantly refined design combining comfort, spaciousness, efficiency and technology, was debuted at the 2015 Istanbul Motor Show on May 21. Sales are scheduled to commence in November 2015 in Turkey and continue in over forty countries across the EMEA region.
At the opening of Expo Milano 2015 on May 1, Fiat Chrysler Automobiles, as Official Global Partner with a fleet of 105 vehicles, together with its brands, welcomed all the visitors to the event with an outdoor campaign based on the universal language of flags composed of high impact maxi-boards, posters and video installations at the main entrances of the exhibition. The Company opened the FCA Store inside the Expo Pavilions and held a round table on the topic of "The Environment: driving change and innovation" on the occasion of the World Environment Day.
The all-new Chrysler 200 was named "Car of the Year" in April by the Rocky Mountain Automotive Press association while the all-new Chrysler 300C Platinum made Ward's prestigious "10 Best Interiors List" for 2015.
The all-new Jeep Renegade and the Fiat 500 were selected by Kelley Blue Book for its annual list of the "10 Coolest New Cars Under $18,000" in May.
EBIT to Adjusted EBIT reconciliation
FIAT CHRYSLER AUTOMOBILES - EBIT to Adjusted EBIT reconciliation
Six months ended June 30, Three months ended June 30,
2015 2014 (€ million) 2015 2014
2,140 80 81 - 12 4 8 | 1,231 EBIT 92 Venezuela charge/(gain) resulting from change in exchange rate - NHTSA consent order (8) (Gains)/losses on the disposal of investments 8 Restructuring costs/(reversal) 11 Impairment expense 289(1) Other | 1,348 80 81 - 8 4 4 | 961 (2) - - (2) 11 - |
185 | 392 Total adjustments | 177 | 7 |
2,325 | 1,623 Adjusted EBIT | 1,525 | 968 |
(1) Primarily includes the €495 million charge in Q1 2014 recognized in connection with the UAW Memorandum of Understanding enter ed into by FCA US in January 2014 partly offset by the €223 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 prev iously not owned.
Calculation of Adjusted Net profit
Adjusted Net Profit
Six months ended June 30, Three months ended June 30,
2015 2014 (€ million) 2015 2014
425 185 (60) | 24 Net profit 392 Adjustments (as above) (120) Total tax impact on adjustments | 333 177 (60) | 197 7 - |
125 | 272 Total adjustments, net of taxes | 117 | 7 |
550 | 296 Adjusted net profit | 450 | 204 |
Calculation of Adjusted Basic EPS
Basic EPS - as adjusted
Six months ended June 30, Three months ended June 30,
2015 2014 2015 2014
0.264 125 0.083 | (0.012) Basic EPS (€/share) 272 Adjustments, net of taxes (€ million) 0.224 Total impact of adjustments on Basic EPS (€/share) | 0.212 117 0.077 | 0.143 7 0.006 |
0.347 | 0.212 Adjusted basic EPS (€/share) | 0.289 | 0.149 |
1,509,717 | 1,216,209 Weighted average number of shares (thousand) | 1,511,083 | 1,216,269 |
*********
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", "des ign", "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 eve nts 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 express ed 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 Gro up'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; pote ntial 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, finan cial 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 separation of Ferrari; political and civil unrest; earthquakes or other natural disasters and other risks a nd 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 July 30, 2015, at 3p.m. BST, management will hold a conference call to present the 2015 Half-Year 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.
London, July 30, 2015
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