Fiat Chrysler

(30.05% of share capital)

 

 

 

The main consolidated results of the Fiat Group for the first half of 2012 are as follows:

  Half I  
€ million 2012 2011(1) Change
Net revenues 41,745 22,363 19,382
Trading profit/(loss) 1,876 776 1,100
EBIT 1,890 1,882 8
Profit/(loss) for the period 737 1,274 (537)
Profit/(loss) attributable to owners of the parent 207 1,337 (1,130)
(1) The first half 2011 data include the consolidation of Chrysler from June 1, 2011.
  Balances at
€ million 30/06/2012 31/12/2011
Total assets 84,768 80,031
Net debt (8,575) (8,898)
- of which: Net industrial debt (5,435) (5,529)
Equity attributable to owners of the parent 9,143 8,727

Group revenues were €41.7 billion in the first half of 2012. Excluding Chrysler, revenues totaled €17.9 billion, a 6.6% decrease over the first half of 2011, mainly reflecting volume declines in Europe.

Luxury and Performance brands increased revenues by 10% to €1.4 billion, driven by growth in Asia and North America.

Components and Production systems revenues were down 1.6% to €4.0 billion.

  Half I Change
€ million 2012 2011 pro-forma(1) %
NAFTA (mass-market brands) 21,354 16,866 26.6
LATAM (mass-market brands) 5,211 5,466 (4.7)
APAC (mass-market brands) 1,477 907 62.8
EMEA (mass-market brands) 9,428 10,653 (11.5)
Luxury and performance cars (Ferrari, Maserati) 1,438 1,308 9.9
Components (Marelli, Teksid, Comau) 4,037 4,101 (1.6)
Other 480 524 (8.4)
Eliminations and adjustments (1,680) (2,072) (18.9)
Revenues 41,745 37,753 10.6
(1) Assumes Chrysler consolidated from January 1, 2011.

Trading profit/(loss)
Trading profit for the first half of 2012 was €1,876 million. Trading profit for Fiat excluding Chrysler was €138 million, compared to €626 million in the first half of 2011. For Luxury and Performance brands, trading profit increased 15.1% to €175 million, while Components reported a 19.4% decrease to €83 million.

EBIT
EBIT was €1,890 million. Excluding Chrysler, EBIT was €114 million. For mass-market brands by region on a pro-forma basis: NAFTA EBIT increased by 80% to €1,425 million, driven by strong volume growth; for LATAM, EBIT was €473 million, down from €658 million in the first half of 2011; APAC nearly tripled to €145 million, with both volume and margin improvements. EMEA reported a €354 million loss, which includes €90 million of unusuals due to the writedown of the Sevelnord joint venture, compared to a loss of €472 million in the first half of 2011, which included €373 million of unusuals related to product portfolio rationalization following the acquisition of control of Chrysler. Excluding unusuals, the loss was €264 million in the first half of 2012, compared to €99 million in the first six months of 2011.

  Half I  
€ million 2012 2011 pro-forma(1) Change
NAFTA (mass-market brands) 1,425 791   634
LATAM (mass-market brands) 473 658   (185)
APAC (mass-market brands) 145 54   91
EMEA (mass-market brands) (354) (472)   118
Luxury and performance cars (Ferrari, Maserati) 175 152   23
Components (Marelli, Teksid, Comau) 83 (210)   293
Other (48) (48)   0
Eliminations and adjustments (9) 1,795 (2) (1,804)
EBIT 1,890 2,720   (830)
(1) Assumes Chrysler consolidated from January 1, 2011. (2) Includes €2,017 million unusual income from measurement of the stake in Chrysler upon acquisition of control, net of the related €220 million recognition of Chrysler’s inventory step‐up.

Profit/(loss) for the period
Net financial expense totaled €838 million. Excluding Chrysler, net financial expense was €422 million, compared to €298 million, reflecting higher debt levels with a marginal positive impact from the mark-to-market of the Fiat stock option-related equity swaps.

Profit before taxes was €1,052 million. Excluding Chrysler, there was a €308 million loss compared to €1,657 million profit in the first half of 2011. Net of unusuals, the loss was €214 million in the first half of 2012 as compared to a profit of €376 million; the €590 million reduction over the first six months of 2011 reflects a €466 million decrease in EBIT and higher net financial expense.

Income taxes totaled €315 million. Excluding Chrysler, income taxes were €211 million and related primarily to the taxable income of companies operating outside Italy and employment-related taxes in Italy.

Net profit was €737 million for the first half (€207 million after minorities). Excluding Chrysler, there was a €519 million loss as compared to a €1,417 million profit for the first half of 2011; excluding unusuals, the loss was €425 million in the first half of 2012 compared to a €113 million profit in the corresponding period of 2011.

Equity
Equity attributable to owners of the parent of Fiat S.p.A. at June 30, 2012 amounted to €9,143 million compared to €8,727 million at December 31, 2011.

Net debt
At June 30, 2012, consolidated net debt totaled €8,575 million, down €323 million over the beginning of the year. Excluding Chrysler, net industrial debt was €1.4 billion higher as a result of the €1.3 billion in capital expenditure and working capital absorption of around €750 million for the period, both of which were only partially offset by income-related cash inflows (€0.4 billion).

For Chrysler, net debt was down €1.7 billion, with €3.7 billion in positive cash flow from operations only partially offset by €1.9 billion in capital expenditure for the period.

  Balances at  
€ million 30/06/2012 31/12/2011 Change
Debt (28,544) (26,772) (1,772)
Asset-backed financing (465) (710) 245
Other debt (28,079) (26,062) (2,017)
Current financial receivables from jointly-controlled financial services companies (1) 39 21 18
Gross debt (28,505) (26,751) (1,754)
Liquidity 19,765 17,725 2,040
Assets / (Liabilities) from derivative financial instruments (2) 165 128 37
Net debt (8,575) (8,898) 323
- Industrial Activities (5,435) (5,529) 94
- Financial Services (3,140) (3,369) 229
(1) Includes current financial receivables from FGA Capital Group. (2) Includes the fair value of derivative financial instruments.

Significant events in the second quarter 2012 and subsequent events
On April 27, 2012 Standard & Poor’s lowered its rating on Fiat S.p.A.’s long-term debt from “BB” to “BB-” with stable outlook. The short-term rating was confirmed at “B”.

On May 21, 2012 Fiat S.p.A. completed the mandatory conversion of all preference and savings shares into Fiat ordinary shares pursuant to the shareholder resolution of April 4, 2012. As a result of the conversion, the company’s share capital increased to €4,476,441,927.34, consisting of 1,250,402,773 shares with a par value of €3.58 each.

On June 28, 2012 a ceremony was held at the Fiat-GAC plant in Changsha, China, to celebrate completion of the new factory and rollout of the Fiat Viaggio, the first Fiat model produced in China by the JV.

On July 3, 2012 Fiat notified VEBA (the Voluntary Employee Beneficiary Association) of its intention to exercise the option to purchase a portion of VEBA’s ownership interest in Chrysler. That tranche represents approximately 3.3% of Chrysler’s outstanding equity. Following completion of the purchase, Fiat will hold 61.86% of Chrysler’s outstanding equity.

On July 16, 2012 Fiat issued a €600 million bond (fixed coupon 7.75% due October 2016). The notes - issued by Fiat Finance and Trade Ltd. S.A., a wholly-owned Group subsidiary, and guaranteed by Fiat S.p.A. under the Global Medium Term Note Programme - have been rated Ba3 by Moody’s, BB- by Standard & Poor’s and BB by Fitch.

 

Commercial Register No.64236277 Legal notes | Credits