FCA(29.16% stake, 44.27% of voting rights on issued capital)




The key consolidated figures of FCA reported in the first half of 2015 are the following:

  Half I Change
€ million 2015 2014  
Net revenues 55,624 45,453 10,171
EBIT 2,140 1,231 909
Adjusted EBIT (1) 2,325 1,623 702
Profit before taxes 907 232 675
Net profit 425 24 401
Profit (loss) attributable to owners of the parent 398 (14) 412
(1) Adjusted EBIT is a non-GAAP measure used to measure performance. It 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.
€ million 6/30/2015
12/31/2014
Change
Total assets 105,795 100,510 5,285
Net debt (10,832) (10,849) 17
- of which: (Net industrial debt) (8,021) (7,654) (367)
Equity attributable to owners of the parent 14,678 13,425 1,253

Net revenues

Net revenues for the six months ended June 30, 2015 total €55.6 billion, an increase of €10.2 billion, (+22.4; +7% at constant currency), from €45.5 billion in the six months ended June 30, 2014, driven in general by higher volumes, the positive foreign currency translation impact and a more favorable product mix. By sector, the improvement is mainly due to a €9.4 billion increase in NAFTA (+39.1%; +14.6% at constant currency), a €1.2 billion increase in EMEA (+13.4%; +9% at constant currency) and an increase of €0.8 billion in Components (+20%; +15.1% at constant currency), which were partially offset by a decrease in LATAM (-18.1%; -18.4% at constant currency) and Maserati (-18.3%; -29.1% at constant currency), which is attributable to the combined effect of lower vehicle shipments resulting from poor trading conditions in the region's principal markets.

  Half I  Change
€ million 2015 2014 amount %
NAFTA 33,363 23,990 9,373 39.1
LATAM 3,402 4,153 (751) -18.1
APAC 3,035 3,019 16 0.5
EMEA 10,154 8,951 1,203 13.4
Ferrari 1,387 1,349 38 2.8
Maserati 1,133 1,387 (254) -18.3
Components (Magneti Marelli, Teksid, Comau) 4,984 4,154 830 20.0
Other activities 408 402 6 1.5
Unallocated items and adjustments (2,242) (1,952) (290) n.s.
Net revenues 55,624 45,453 10,171 22.4

Adjusted EBIT

Adjusted EBIT in the first half of 2015 increased by €702 million to €2,325 million, (+43.3%) compared to €1,623 million in the first half of 2014, thanks to the strong improvements in NAFTA, due to higher volumes, improved net pricing, positive foreign currency translation impact and purchasing efficiencies, partially offset by increased warranty costs, recall campaigns, higher base material costs for vehicle content enhancements and advertising to support new vehicle launches, and by continued improvement in EMEA, attributable to a more favorable volume/mix due to the success of the Fiat 500X and Jeep Renegade, improved net prices and purchasing and manufacturing efficiencies partially offset by increased industrial costs reflecting a weaker Euro against the U.S. dollar and marketing spending to support the Jeep brand growth and the launch of the all-new Fiat 500X.

Adjusted EBIT of LATAM is a negative €144 million, a decrease of €251 million due to lower volumes owing to market conditions, increased start-up costs for the Pernambuco plant and marketing spending for the Jeep Renegade launch, partially offset by positive net pricing.

In APAC, the decrease in adjusted EBIT of €133 million is due to lower volumes and unfavorable net pricing primarily due to negative foreign currency effects, partially offset by a reduction in marketing costs.

The improvement in adjusted EBIT by Components (+45.1%) is due to higher volumes and efficiencies.

The analysis by sector is as follows:

  Half I Change 
€ million 2015 2014
NAFTA 1,928 975 953
LATAM (144) 107 (251)
APAC 112 245 (133)
EMEA 82 (72) 154
Ferrari 224 185 39
Maserati 79 120 (41)
Components (Magneti Marelli, Teksid, Comau) 164 113 51
Other activities (61) (41) (20)
Unallocated items and adjustments (59) (9) (50)
Adjusted EBIT 2,325 1,623 702

EBIT

In the first half of 2015 net unusual expenses were recognized for €185 million (€177 million in the second quarter of 2015) mainly due to the €80 million devaluation of the Venezuelan bolivar resulting from the adoption of the SIMADI exchange rate and the consent order agreed with the National Highway Traffic Safety Administration in the United States for €81 million.

It should be noted that EBIT was adjusted in the first half of 2014 to arrive at Adjusted EBIT by the €495 million charge in connection with the execution of the UAW MOU entered into by FCA US in January 2014 and the devaluation of the Venezuelan bolivar for €92 million, net of the net non-cash and non-taxable unusual gain of €223 million corresponding to the fair value remeasurement of the previously exercised options in connection with the acquisition of FCA US.

Profit for the period

Net financial expenses total €1,233 million, an increase of €234 million compared to the first half of 2014 primarily due to the prepayment of certain FCA US’s notes, unfavorable foreign currency translation effects and higher debt levels in Brazil.

Tax expenses amount to €482 million, an increase of €274 million compared to the first half of 2014 principally due to the increase in profit before taxes also considering the non-taxable components recorded in 2014.

Net industrial debt

Net industrial debt at June 30, 2015 is €8 billion compared to €7.7 billion at December 31, 2014. The net increase of €0.3 billion principally refers to capital expenditures of €4 billion and cash flows from operating activities.

€ million 6/30/2015
12/31/2014
Change
Cash maturities (principal) (31,847) (32,892) 1,045
- Bank debt (12,779) (13,120) 341
- Capital market instruments (1) (17,107) (17,729) 622
- Other  debt (2) (1,961) (2,043) 82
Asset-backed financing (3) (258) (469) 211
Accruals and other adjustments (121) (305) 184
Gross debt (32,226) (33,666) 1,440
Cash and marketable securities 21,349 23,050 (1,701)
Derivative assets/(liabilities) 45 (233) 278
Net debt (10,832) (10,849) 17
Industrial activities (8,021) (7,654) (367)
Financial activities (2,811) (3,195) 384
(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.

Significant events in the first half of 2015 and subsequent events

In April 2015, FCA issued $1.5 billion (€1.4 billion) principal amount of 4.50% unsecured senior debt securities due in 2020 (the “Initial 2020 Notes”) and $1.5 billion principal amount of 5.250% unsecured senior debt securities due in 2023 (the “Initial 2023 Notes”) at an issue price of 100% of their principal amount. The Initial 2020 Notes and the Initial 2023 Notes are collectively referred to as “the Initial Notes”.

Also in April FCA’s new compensation arrangement was presented at a meeting with the trade unions. The arrangement incentivizes all employees within the automobiles business toward achievement of the productivity, quality and profitability targets established in the 2015-2018 business plan and is expected to cost FCA approximately €600 million over the 4-year period.

On May 14, 2015 FCA US prepaid its 8% secured senior notes due in 2019 with a redemption payment of $3.1 billion.

Giulia, a new model of Alfa Romeo, was unveiled to the international press in the Quadrifoglio Verde version at the newly renovated Alfa Romeo Historic Museum on June 24, 2015, the 105th anniversary date of the founding of Alfa Romeo.

On July 7, 2015 FCA and CNH Industrial renewed the Company-specific Collective Labor Agreement (CCSL) with the trade unions FIM-CISL, UILM-UIL, FISMIC, UGL Metalmeccanici and the Associazione Quadri e Capi Fiat. The agreement applies to all 85,000 employees of the two groups in Italy.

The new 4-year agreement (2015-2018) includes an innovative performance-based compensation scheme linked to the achievement of certain efficiency and profitability targets. If the targets are met, employees will be entitled to a total bonus amount of between €7,000 and €10,700 over four years. This scheme has therefore now been extended to all companies in Italy of the two Groups.

On July 23, 2015, the  Group's subsidiary, New Business Netherlands N.V. (to be renamed Ferrari N.V.) filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission (“SEC”) for a proposed initial public offering of common shares currently held by FCA. The number of common shares to be offered and the price range for the proposed offering have not yet been determined, although the proposed offering is not expected to exceed 10 percent of Ferrari N.V.’s outstanding common shares. In connection with the initial public offering, Ferrari N.V. intends to apply to list its common shares on the New York Stock Exchange.

On July 27, 2015 FCA US announced it has entered into a consent order with the National Highway Traffic Safety Administration (NHTSA) which resolves the issues raised by NHTSA with respect to FCA US’s execution of 23 recall campaigns in NHTSA’s Special Order issued to FCA US on May 22, 2015 and further addressed at a NHTSA public hearing held on July 2, 2015. The consent order includes an admission by FCA US that in three specified campaigns it had failed to timely provide an effective remedy, and that it did not timely comply with various reporting requirements under the National Traffic and Motor Vehicle Safety Act of 1966.
Pursuant to the consent order, FCA US has agreed to make a $70 million cash payment to NHTSA and to spend $20 million on industry and consumer outreach activities and incentives to enhance certain recall and service campaign completion rates. An additional $15 million payment will be payable by FCA US if it fails to comply with certain terms of the consent order.
FCA US has also agreed to undertake specific actions to improve its recall execution. The consent order will be supervised by an independent monitor and will remain in place for three years subject to NHTSA’s right to extend for an additional year in the event of FCA US' noncompliance with the consent order.

 

 

Commercial Register No.64236277 Legal notes | Credits