FCA

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

 

 

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

  9 months
to September 30
QIII
€ million 2015 2014 2015 2014
Net revenues
83,092 69,006 27,468 23,553
EBIT 2,500 2,157 360 926
Adjusted EBIT (1)3,6282,5911,303968
Profit (loss) before taxes
647 647 (260) 415
Net profit (loss)
126212(299)188
Profit (loss) attributable to owners of the parent
92 160 (306) 174
(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 9/30/2015 12/31/2014
Change
Total assets
103,551 100,5103,041
Net debt
(10,262) (10,849)587
- of which: Net industrial debt
(7,845) (7,654)(191)
Equity attributable to owners of the parent
14,197 13,425772

Net revenues

Net revenues in the first nine months of 2015 total €83.1 billion, an increase of €14.1 billion (+20.4%; +6.7% at constant currency) from €69 billion in the first nine months of 2014.
By sector, the improvement is mainly due to increases in NAFTA of €13.9 billion (+37.6%; +14.8% at constant currency) driven by higher volumes, better net prices and positive translation impacts, in EMEA of€1.7 billion (+13.3%; +13% at constant currency) thanks to higher volumes, improved pricing and mix and in Components of €1.1 billion (+17.5%; +14.3% at constant currency), which are partially offset by decreases in LATAM (-22.1%; -17.1% at constant currency) mostly attributable to lower volumes, in APAC (-15.7%; -26.4% at constant currency) resulting from lower volumes following the Tianjin port explosion as well as pricing pressure in China and in Maserati (-19.1%; -28.8% at constant currency), due to the effect of lower vehicle shipments resulting from weak demand in the reference markets.
In the third quarter of 2015, net revenues amount to €27.5 billion, up €3.9 billion (+17%; +6% at constant currency) compared to €23.6 billion in the third quarter of 2014.

  9 months
to September 30
Change
€ million 2015 2014 amount%
NAFTA
51,067
37,124 13,94338
LATAM 4,917
6,315 (1,398)-22
APAC
3,877
4,597 (720)-16
EMEA
14,765
13,031 1,73413
Ferrari2,1102,011995
Maserati1,6492,039(390)-19
Components (Magneti Marelli, Teksid, Comau)
7,332
6,240 1,09218
Other 621
602 193
Unallocated items and adjustments
(3,246)
(2,953) (293)n.s.
Net revenues
83,092
69,006 14,08620

Adjusted EBIT

AdjustedEBIT in the first nine months of 2015 is €3,628 million, an increase €1,037 million (+40%) compared to €2,591 million in the first nine months of 2014. This reflects strong improvements recorded by NAFTA, due to higher volumes, improved net pricing, positive translation impact and purchasing efficiencies, partially offset by increased warranty costs, increases in recall accrual rates and product costs for vehicle content enhancements and continued improvement in EMEA, attributable to a more favorable product 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€116 million, a decrease of €285 million driven by 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 and favorable product mix attributable to sales of the Renegade.
In APAC, the decrease in Adjusted EBIT of €385 million is due to lower volumes as a result of growing competition in China and the interruption of supply following the explosion at the Tianjin port and the unfavorable price impact, primarily owing to negative foreign currency effects, partially offset by a reduction in marketing costs.
The improvement in adjusted EBIT by Components (+52.3%) is due to higher volumes and efficiencies.
The analysis by sector is as follows:

  9 months
to September 30
Change
€ million 2015 2014  
NAFTA
3,114
1,529
1,585
LATAM (116)
169
(285)
APAC
29
414
(385)
EMEA
102
(131)
233
Ferrari364289
75
Maserati91210
(119)
Components (Magneti Marelli, Teksid, Comau)
262
172
90
Other (109)
(49)
(60)
Unallocated items and adjustments
(109) (12)
(97)
Adjusted EBIT
3,628
2,591
1,037

EBIT

In the first nine months of 2015 net unusual expenses were recognized for €1,128 million, of which €943 million in the third quarter of 2015, primarily attributable to the change in estimate for future recall campaign costs for vehicles sold in prior periods in NAFTA (€761 million) and the writedown of inventories as well as incremental incentives for vehicles damaged in the Tianjin (China) port explosion (€142 million, expected to be recovered through insurance). The unusual expenses for the €80 million devaluation of the Venezuelan bolivar resulting from the adoption of the SIMADI exchange rate and the €81 million consent order agreed with the National Highway Traffic Safety Administration in the United States had already been recognized in the first half of 2015.

EBIT was adjusted in the first nine months of 2014 to arrive at Adjusted EBIT principally 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 of €98 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.

Net profit (loss) for the period

Net financial expenses total €1,853 million, an increase of €343 million compared to the corresponding period of 2014 primarily reflecting the prepayment of certain FCA US’s notes, unfavorable foreign currency translation effects and the higher debt level in Brazil, partially offset by interest cost savings resulting from the reduction in overall gross debt.

Tax expense totals €521 million, an increase of €86 million compared to the first nine months of 2014 mainly due to a non-recurring tax benefit recorded in 2014.

Net industrial debt

Net industrial debt at September 30, 2015 is €7.8 billion compared to €7.7 billion at December 31, 2014. The net increase of €0.1 billion primarily reflects capital expenditures of €6.5 billion and cash flows from operating activities.

€ million 9/30/2015 12/31/2014
Change
Cash maturities (principal)
(30,617)
(32,892)
2,275
- Bank debt
(12,434)
(13,120)
686
- Capital market instruments (1) (16,530)
(17,729)
1,199
- Other debt (2) (1,653)
(2,043)
390
Asset-backed financing (3) (179)
(469)
290
Accruals and other adjustments
(347)
(305)
(42)
Gross debt
(31,143)
(33,666)
2,523
Cash and marketable securities
20,40823,050(2,642)
Derivative assets/(liabilities)
473
(233) 706
Net debt
(10,262)
(10,849)
587
Industrial activities
(7,845)
(7,654)
(191)
Financial activities
(2,417)
(3,195)
778
(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 third quarter of 2015 and subsequent events

On July 4, 2015 the new Fiat500 was revealed, exactly eight years after the iconic Fiat500 was first launched, and the FiatToro, a new sport compact pick-up truck designed specifically for South America and to be built in Pernambuco, was previewed in September.

October 21, 2015 was the first day of trading on the New Stock Exchange for the 17,175,000 shares in Ferrari’s initial public offering, at the initial offering price of $52 per share. The closing of the transaction was announced on October 26, 2015 with the confirmation that the underwriters exercised in full their option to purchase 1,717,150. The gross proceeds for FCA of the total 18,892,150 Ferrari shares sold total $982.4 million.

On October 22, 2015 FCA published the agenda and explanatory notes for the extraordinary general meeting of the shareholders that is to be held on December 3, 2015 in Amsterdam. The extraordinary general meeting is scheduled to approve a demerger pursuant to which FCA would transfer all of the shares held by it in Ferrari N.V. to FE Interim B.V., a newly-formed Dutch company, with FE Interim B.V. issuing common shares and special voting shares to holders of FCA’s corresponding shares (“Demerger”). The Demerger is part of a series of transactions intended to separate FCA’s remaining ownership interest in Ferrari N.V. and to distribute that ownership interest to holders of FCA shares and mandatory convertible securities.

On October 22, 2015 FCA US and UAW signed a new four-year national collective bargaining agreement effective 2016. The provisions of the new agreement include incentives upon meeting certain quality, productivity and profitability performance metrics and closes the pay gap between “Traditional” older and “in-progression” younger employees over an eight year period.

Commercial Register No.64236277 Legal notes | Credits