FCA(29.19% stake, 44.31% of voting rights on issued capital)

 

 

The key consolidated figures of FCA reported for the first quarter of 2015 are the following:

  QI
Change
€ million
2015 2014  
Net revenues
26,396 22,125 4,271
EBIT 792 270 522
Adjusted EBIT (1) 800 655 145
Pre-tax profit (loss)
186 (223) 409
Net profit
92 (173) 265
Profit (loss) attributable to owners of the parent
78 (189) 267
(1) Adjusted EBIT is non-GAAP financial measure used to measure its performance. Adjusted EBIT is computed by subtracting the following from EBIT: gains and losses on the disposals of investments, restructuring costs, impairments, asset write-offs and other unusual items, which are considered rare or discrete events that are infrequent in nature.
€ million
3/31/2015
12/31/2014
Change
Total assets
106,978 100,510 6,468
Net debt
(11,448) (10,849) (599)
- of which: (Net industrial debt)
(8,607) (7,654) (953)
Equity attributable to owners of the parent
14,893 13,425 1,468

Net revenues

Net revenues are €26.4 billion in the first quarter of 2015, an increase of €4.3 billion (+19%; +4% on a constant currency basis) from €22.1 billion in the first quarter of 2014, driven in general by higher volumes and a more favorable product mix. By sector, the improvement is principally due to growth of €4.4 billion in NAFTA (+38%; +13% on a constant currency basis), €0.3 billion in EMEA (+8%; +6% on a constant currency basis) and €0.4 billion for Components (+17%; +12% on a constant currency basis), partially offset by decreases recorded by LATAM (-21%; -24% on a constant currency basis) and Maserati (-19%; -29% on a constant currency basis) due to the impact on volumes from reduced shipments owing to weaker demand in the reference markets.

  QI
Change
€ million
2015 2014 amount
%
NAFTA 16,177 11,732 4,445 38
LATAM 1,551 1,965 (414) -21
APAC 1,512 1,497 15 1
EMEA 4,684 4,341 343 8
Ferrari 621 620 1 0
Maserati 523 649 (126) -19
Components (Magneti Marelli, Teksid, Comau) 2,435 2,081 354 17
Other 197 201 (4) -2
Unallocated items and adjustments (1,304) (961) (343) 36
Net revenues 26,396 22,125 4,271 19

Adjusted EBIT

Adjusted EBIT totals €800 million in the first quarter of 2015, up €145 million (+22%) over €655 million in the first quarter of 2014 due to improved performance in NAFTA, attributable to higher volume, positive net pricing and purchasing efficiencies, partially offset by increased warranty and recall campaign costs and industrial costs for enhanced vehicle content, and continued progress in EMEA, which posted a positive result for the second consecutive quarter, on the back of volume increase and favorable mix driven by the Fiat 500X and the Jeep Renegade. Adjusted EBIT in LATAM is a negative €65 million, decreasing by €109 million on account of lower volumes due to the market conditions and Pernambuco factory start-up costs, partially offset by favorable pricing. Excluding the launch costs for the new Pernambuco plant LATAM would have been at breakeven for the quarter.

In APAC, Adjusted EBIT decreased by €70 million as a result of lower volumes and unfavorable net pricing due primarily to negative foreign exchange impact.

The analysis by sector is as follows:

  QI
Change
€ million
2015 2014
NAFTA 601 380 221
LATAM (65) 44 (109)
APAC 65 135 (70)
EMEA 25 (72) 97
Ferrari 100 80 20
Maserati 36 59 (23)
Components (Magneti Marelli, Teksid, Comau) 68 48 20
Other
(9) (13) 4
Unallocated items and adjustments
(21) (6) (15)
Adjusted EBIT 800 655 145

EBIT

Unusual items recorded in the first quarter of 2015 were not such as to determine a significant difference in EBIT,which is therefore in line with Adjusted EBIT.

With regards to the adjustments from EBIT to Adjusted EBIT, it should be noted that the Group Adjusted EBIT for the first quarter of 2014 primarily excludes the one-off charge of €495 million in connection with the UAW Memorandum of Understanding entered into by FCA US in January 2014, the effect of the devaluation of the Venezuelan bolivar of €94 million and the non-taxable gain of €223 million on the fair value remeasurement of the previously exercised options in connection with the acquisition of FCA US.

Profit (loss) for the period

Net financial expenses total €606 million, €113 million higher than in the first quarter of 2014, primarily due to unfavorable currency translation and higher debt levels in Brazil.

Tax expenses amount to €94 million compared to tax income of €50 million in the first quarter of 2014, principally due to an increase in profit before tax when adjusted for non-taxable items.

Net debt

Net industrial debt at March 31, 2015 is €8.6 billion, up from €7.7 billion at December 31, 2014. The €0.9 billion increase primarily reflects capital expenditures of €2.1 billion and seasonal cash absorption from working capital.

€ million
3/31/2015
12/31/2014
Change
Cash maturities (principal)
(32,769) (32,892) 123
- Bank debt
(13,588) (13,120) (468)
- Capital market instruments (1) (17,119) (17,729) 610
- Other debt (2) (2,062) (2,043) (19)
Asset-backed financing (3) (188) (469) 281
Accruals and other adjustments
(355) (305) (50)
Gross debt (33,312) (33,666) 354
Cash and marketable securities
21,895 23,050 (1,155)
Derivative assets/(liabilities)
(31) (233) 202
Net debt (11,448) (10,849) (599)
Industrial Activities
(8,607) (7,654) (953)
Financial Services
(2,841) (3,195) 354
(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 quarter of 2015 and subsequent events

In April 2015, FCA issued $1.5 billion (€1.4 billion) total principal amount of 4.50% unsecured senior debt securities due 2020 (the “2020 Notes”), at a price of 100% of the principal amount, and $1.5 billion (€1.4 billion) total principal amount of 5.250% unsecured senior debt securities due 2023 (the “2023 Notes”) at a price of 100% of the principal amount. The 2020 Notes and 2023 Notes are collectively referred to as “the Notes”. Net proceeds from the Notes are expected to be used for general corporate purposes as well as for funding the redemption of outstanding Secured Senior Notes of FCA US. After the completion of the offer, FCA US LLC provided notice of its intention to redeem its 2019 Notes on May 14, 2015, pursuant to their terms.

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.

 

Commercial Register No.64236277 Legal notes | Credits