Fiat Chrysler

(30.05% of share capital)

 

 

The main consolidated data of the Fiat Group in the first quarter of 2013 are as follows:

  Q I
 
€ million 2013 2012(1)
Change
Net revenues 19.757
20.221
(464)
Trading profit 618
806
(188)
EBIT 603
835 (232)
Profit for the period 31
262 (231)
Profit (loss) attributable to owners of the parent (83)
35
(118)
  At
€ million 3/31/2013 12/31/2012(1)
Total assets 85.666 82.106
Net debt (10.412) (9.600)
- of which: Net industrial debt (7.105) (6.545)
Equity attributable to owners of the parent 6.245
6.187
(1) Following application of the amendment to IAS 19 – Employee benefits from January 1, 2013, retrospectively, the figures reported in the income statement for the first quarter of 2012 and the statement of financial position at December 31, 2012 have been restated as appropriate. Compared to the figures previously reported in the income statement, the profit for the first quarter of 2012 was reduced by €117 million (a €3 million increase in losses for Fiat excluding Chrysler), of which €60 million represents an increase in costs for ordinary operations (€4 million for Fiat excluding Chrysler) and €57 million an increase in financial expense (a €1 million decrease in financial expense for Fiat excluding Chrysler). Compared to the figures reported in the statement of financial position at December 31, 2012, equity at the same date was reduced by €4,804 million, of which €2,872 million for equity attributable to owners of the parent and €1,932 million for non-controlling interests.

Net revenues

Group revenues were €19.8 billion, 2% lower in nominal terms but flat over the prior year at constant exchange rates. NAFTA decreased 3% to €10 billion and EMEA was down 4% year-over-year to €4.4 billion. LATAM reported revenues of €2.5 billion, a 5% decrease in nominal terms (+6% at constant exchange rates), and APAC increased more than 35% to €1 billion. Luxury and Performance brands were up 4% over the first quarter of 2012 to €0.7 billion, driven by Ferrari. For Components, revenues were €1.9 billion, down 4% over the first quarter of 2012.

    
QI
Change
€ million 2013 2012 %
NAFTA (mass-market brands) 10.012 10.375 (3,5)
LATAM (mass-market brands) 2.468 2.587 (4,6)
APAC (mass-market brands) 968
714
35,6
EMEA (mass-market brands) 4.350 4.508 (3,5)
Luxury and Performance Brands (Ferrari, Maserati) 684 660
3,6
Components and Production Systems(Magneti Marelli, Teksid, Comau) 1.936
2.015
(3,9)
Other
227 217
4,6
Eliminations and adjustments (888) (855) 3,9
Net revenues 19.757 20.221
(2,3)

Trading profit (loss)

Trading profit totaled €618 million for the first quarter of 2013. The NAFTA region reported a trading profit of €397 million, a €217 million decrease over the first quarter of 2012 (as restated for adoption of IAS 19 as amended), attributable to a reduction in shipments due to key model launches and preparation for the second quarter production launch of the all-new 2014 Jeep Cherokee and the associated industrial costs, partly compensated for by continued favorable pricing. LATAM performed to expectations with a trading profit of €186 million (€235 million for the first quarter of 2012), down 10% net of currency translation impacts and a less favorable production mix due to the shift of the annual shutdown of the Brazilian plant from December 2012 to February 2013 and lower volumes for Chrysler products due to import quotas from Mexico introduced during 2012. APAC posted a trading profit of €100 million, an improvement of €23 million over the first quarter of the prior year, with the impact of volume increases more than offsetting higher sales and marketing costs in support of the Group’s expansion in the region. In EMEA, losses were reduced by €50 million over the prior year to €157 million, with discipline in selling, general and administrative spending and better product mix more than offsetting the impacts of continued deterioration in trading conditions. Luxury and Performance brands contributed €76 million, essentially in line with the first quarter of 2012, with Ferrari posting a 43% year-over-year improvement and results for Maserati affected by the ramp-up of the new Quattroporte, which started production in late January. For Components, the first quarter trading profit was €33 million, also in line with the first quarter a year ago.

EBIT

EBIT was €603 million: the €232 million decrease mainly reflected lower trading profit in NAFTA and LATAM, with EBIT for mass-market decreasing 36% in NAFTA to €400 million and 46% in LATAM to €127 million (including €59 million of unusual charges related to the February 2013 devaluation of the Venezuelan bolivar fuerte relative to the U.S. dollar). For APAC, EBIT increased 15% to €98 million, while EMEA reduced losses by €59 million to €111 million. For Luxury and Performance Cars and Components, EBIT was €76 million and €35 million respectively, in line with the first quarter of 2012.

    
QI
Change
€ million 2013 2012(1) 
NAFTA (mass-market brands) 400 625
(225)
LATAM (mass-market brands) 127 235
(108)
APAC (mass-market brands) 98
85
13
EMEA (mass-market brands) (111)
(170)
59
Luxury and Performance Brands (Ferrari, Maserati) 76
71
5
Components and Production Systems (Magneti Marelli, Teksid, Comau) 35
35
0
Other
(27) (36)
9
Eliminations and adjustments 5
(10) 15
EBIT 603
835
(232)
(1) Following application of the amendment to IAS 19, figures previously reported for the first quarter of 2012 have been restated: EBIT was reduced €56 million for the NAFTA region, €1 million for Components and €3 million for Eliminations and Adjustments.

Profit for the period

Net financial expense totaled €443 million, an increase of €11 million over the first quarter of 2012. Net of the impact of the marking-to-market of the Fiat stock option-related equity swaps (gains of €15 million in the first quarter of 2013 and €38 million in the first quarter of 2012), net financial expense was down €12 million over the first quarter of 2012.

Profit before taxes was €160 million (€403 million in the first quarter of 2012, restated for adoption of IAS 19 as amended). The decrease of €243 million reflected the €232 million reduction in EBIT and an €11 million increase in net financial charges.

Income taxes totaled €129 million. Excluding Chrysler, income taxes were €100 million and related primarily to taxable income of companies operating outside Italy and employment-related taxes in Italy.

Net profit was €31 million for the quarter (€262 million for the first quarter of 2012, restated for adoption of IAS 19 as amended).

Loss attributable to owners of the parent was €83 million (compared with a €35 million profit for the first quarter of 2012). For Fiat excluding Chrysler, the net loss was reduced by €41 million over the first quarter of 2012 to €235 million.

Equity

Equity attributable to owners of the parent at March 31, 2013 amounted to €6,245 million compared with €6,187 million at December 31, 2012.

Net debt

At March 31, 2013, consolidated net debt totaled €10,412 million, up €812 million over the beginning of the year. Excluding Chrysler, net debt was €945 million higher, primarily as a result of €0.7 billion in capital expenditure and a €0.3 billion increase in the lending portfolio of financial services companies.

  At  
€ million 3/31/2013 12/31/2012 Change
Debt (29.041) (27.889) (1.152)
Asset-backed financing (476) (449) (27)
Bonds, bank loans and other debt (28.565) (27.440) (1.125)
Current financial receivables from jointly-controlled (1) 91
58
33
Gross debt (28.950) (27.831) (1.119)
Other financial assets (liabilities) (2) 208
318
(110)
Cash and cash equivalents and current securities
18.330
17.913
417
Net debt (10.412) (9.600) (812)
- Industrial Activities (7.105) (6.545) (560)
-  Financial Services (3.307) (3.055) (252)
(1) Includes current financial receivables from FGA Capital Group. (2) Includes fair value of derivative financial instruments.

Significant events in the first quarter

On January 9, 2013, Chrysler Group announced that it had received a demand from VEBA, pursuant to the terms of the Shareholders Agreement, seeking registration of approximately 16.6% of Chrysler Group’s outstanding equity interests currently owned by VEBA.

On January 18, 2013, Fiat Group Automobiles S.p.A. (FGA) and Mazda Motor Corporation (Mazda) signed a final agreement for the development and manufacture of a new roadster for the Mazda and Alfa Romeo brands based on Mazda’s next-generation MX-5 rear-wheel-drive architecture. Each model will be powered by proprietary engines unique to the respective brands. Both vehicles will be manufactured at the Mazda plant in Hiroshima, Japan. Production of the Alfa Romeo model is scheduled to begin in 2015.

On February 6, 2013, Chrysler Group announced an agreement with Santander Consumer USA Inc. (SCUSA) in which SCUSA will provide a full range of wholesale and retail financing services to Chrysler Group’s dealers and consumers under the Chrysler Capital brand name. The new private-label financing arrangement is scheduled to launch on May 1, 2013.

On February 25, 2013, Fitch Ratings lowered its rating on Fiat S.p.A.’s long-term debt from “BB” to “BB-”. The short-term rating was confirmed at “B”. The outlook is negative.

On March 15, 2013, Fiat issued a €1.25 billion bond (fixed coupon 6.625%, due March 2018). The Notes – issued by Fiat Finance and Trade Ltd. S.A. and guaranteed by Fiat S.p.A under the GMTN Program – were rated B1 by Moody’s, BB- by Standard & Poor’s and BB- by Fitch.

Commercial Register No.64236277 Legal notes | Credits