Fiat Chrysler Automobiles

FCA

(29.18% stake, 42.34% of voting rights on issued capital)

 

 

 

The key consolidated data of FCA for 2017 are presented below.

 Year Change
€ million2017 2016  
Net revenues 110,934 111,018  423
Adjusted EBIT (1) 7,054 6,056  1,262
Net profit/(loss) 3,510 1,814  1,721
Net industrial debt 2,930(2)4,585(2) (464)
(1) Adjusted EBIT is a non-GAAP financial measure used to measure performance. Adjusted EBIT excludes certain adjustments from Net profit including: gains/(losses) on the disposal of investments, restructuring, impairments, asset write-offs and unusual income/(expenses) that are considered rare or discrete events that are infrequent in nature, and also excludes Net financial expenses and Tax expenses/(benefit). (2) At December 31, 2017 and 2016. Net industrial debt is computed as: Debt plus derivative financial liabilities related to industrial activities less (i) cash and cash equivalents, (ii) current available-for-sale and held-for-trading securities, (iii) current financial receivables from Group or jointly controlled financial services entities and (iv) derivative financial assets and collateral deposits; therefore, debt, cash and other financial assets/liabilities pertaining to financial services entities are excluded from the computation of Net industrial debt.

Net revenues

 YearChange
€ million 20172016 amount % actual% CER(1)
NAFTA 66,09469,094 (3,000) -4-3
LATAM 8,0046,197 1,807 2924
APAC 3,2503,662 (412) -11 
EMEA 22,70021,860 840 44
Maserati 4,0583,479 579 1719
Components (Magneti Marelli, Teksid, Comau) 10,1159,659 456 55
Other activities, unallocated items and adjustments (3,287)(2,933) (354)
 
Net revenues 110,934111,018 (84) 0.4 
(1) Constant exchange rates.

The decrease in NAFTA is mainly due to lower shipments and negative foreign exchange translation effect, partially offset by favorable vehicle and channel mix.

The increase in LATAM is due to higher shipments, favorable vehicle mix, higher net pricing, as well as positive foreign exchange translation.

The decrease in APAC is primarily due to lower consolidated shipments and negative foreign exchange effects.

The increase in EMEA is mainly attributable to higher volumes and positive vehicle mix, partially offset by negative net pricing.

The increase in Maserati is primarily due to higher volumes, partially offset by negative foreign exchange effects.

The increase in Components primarily reflects higher volumes across all three businesses.

Adjusted EBIT

The analysis of Adjusted EBIT by segment is as follows:

 YearChange
€ million 20172016  
NAFTA 5,2275,133 94
LATAM 1515 146
APAC 172105 67
EMEA 735540 195
Maserati 560339 221
Components (Magneti Marelli, Teksid, Comau) 536445 91
Other activities, unallocated items and adjustments (327)(511) 184
Adjusted EBIT 7,0546,056 998

The increase in NAFTA is primarily due to favorable mix, purchasing efficiencies, lower warranty and advertising costs, partially offset by lower volumes, higher product costs for content enhancements, higher industrial costs due to capacity realignment plan and negative foreign exchange effects.

The increase in LATAM is mainly a result of higher net revenues and lower Brazil indirect taxes, partially offset by increased product costs primarily due to input cost inflation and depreciation and amortization related to new vehicles. In the fourth quarter of 2017 the Group deconsolidated the Venezuelan operations and the impact has been excluded from Adjusted EBIT.

The increase in APAC is primarily due to insurance recoveries related to the Tianjin (China) port explosions and favorable mix, partially offset by launch costs for Alfa Romeo and negative foreign exchange transaction effects. Tianjin insurance recoveries are included in Adjusted EBIT to the extent they relate to losses that were recognized in Adjusted EBIT.

The increase in EMEA is primarily due to higher volumes, positive vehicle mix, manufacturing and purchasing efficiencies, partially offset by negative net pricing, including GBP weakness, and higher depreciation and amortization costs related to new vehicles.

The increase of Maserati Adjusted EBIT is primarily due to the higher volumes and industrial cost efficiencies, partially offset by negative foreign exchange effects.

The increase in Components Adjusted EBIT is mainly due to higher volumes and industrial efficiencies resulting from World Class Manufacturing initiatives at Magneti Marelli, partially offset by unfavorable mix and net pricing. Strong Adjusted EBIT and margin growth for Magneti Marelli, led by increases in lighting and chassis business lines

Net profit (loss)

Net profit in 2017 is €3,510 million, up €1,696 million compared to 2016 (€1,814 million) mainly due to the improved operating performance in 2017, lower financial expenses, as well as the €895 million gain for reversal of a Brazilian indirect tax liability, which were partially offset by higher income taxes for the year.

Net industrial debt

Net industrial debt decreased €2.2 billion from December 31, 2016 to €2.3 billion at December 31, 2017 primarily due to operating cash flow from industrial activities of €1.6 billion, net of capital expenditures of €8.7 billion.

€ million 12/31/201712/31/2016 Change
Gross Debt (17,971)(24,048) 3,738
Current financial receivables from jointly-controlled financial services companies 28580 64
Current securities 176241 (241)
Cash and cash equivalents 12,63817,318 (3,344)
Other financial assets /(liabilities), net 206(150) (267)
Debt classified as held for sale  (9) 30
Net debt (4,666)(6,568) (20)
Industrial activities (2,390)(4,585) 464
Financial services (2,276)(1,983) (484)

Significant events in the second-half of 2017 and subsequent events

On October 28, 2017 the sale by intermediaries of ordinary shares in GEDI Gruppo Editoriale S.p.A. (“GEDI”) on behalf of FCA shareholders that were unable to take delivery of the shares to which they were otherwise entitled in the distribution was completed.

FCA shareholders that were ineligible to receive GEDI ordinary shares to which they were otherwise entitled or that did not make timely arrangements to have such shares credited to the account of a Monte Titoli participant were to have such shares aggregated and sold on the open market. The net proceeds after completing all such sales are to be paid pro rata in cash to the FCA shareholders otherwise entitled thereto after conversion of any amount received in any other currency to US dollars.

Following the completion of these sales, FCA anticipates that these shareholders will receive, in lieu of the distribution of GEDI ordinary shares, a cash payment of USD 0.041340 equivalent to € 0.035653 per FCA common share.

This payment, less any applicable withholding tax, is expected to be credited to the applicable DTC participant’s account on November 1, 2017. Individual shareholders’ accounts will be credited thereafter depending on a shareholder’s individual custodial or brokerage arrangements.

In January 2018, as a result of the distribution of the Company's entire interest in GEDI to holders of FCA common shares on July 2, 2017, the Compensation Committee of FCA approved a conversion factor of 1.003733 that was applied to outstanding awards under the LTI Plan to make equity award holders whole for the resulting diminution in the value of an FCA common share. There was no change to the total cost of these awards to be amortized over the remaining vesting period as a result of these adjustments.

On January 11, 2018, a special bonus payment was announced of $2,000 (approximately €1,670) to approximately 60,000 FCA hourly and salaried employees in the United States, excluding senior leadership, during the second quarter of 2018 for an estimated total cost including applicable social taxes, of approximately $130 million (€109 million).

On February 5, 2018 S&P Global Ratings has raised its long term corporate credit rating on FCA N.V. from “BB” to“BB+”, while maintaining the Positive Outlook.

The short-term credit rating is confirmed at “B”.

On February 28, 2018 FCA announced that the Company is continuing its review of the potential separation of FCA’s subsidiary Magneti Marelli S.p.A. (“Magneti Marelli”). The Board of Directors of the Company plans to review in detail options relating to this transaction in the second quarter of 2018, concurrent with the Board’s review of the Group’s 2018-2022 business plan. In the meantime management will continue its evaluation of potential transaction structures to maximize value to FCA stockholders.

There is no assurance that the review of the potential separation of Magneti Marelli will result in a final determination to enter into any such transaction or that such transaction, if commenced, will be completed.

On March 6, 2018 Moody’s Investors Service raised from “Ba3” to “Ba2” the Corporate Family Rating of FCA N.V., and from “B1” to “Ba3” the rating on the bonds issued or guaranteed by FCA N.V. The outlook is stable.

Target 2017

Guidance for 2018, listed below, confirm the Business Plan key targets:

  • Net revenues  ̴ €125 billion;
  • Adjusted EBIT ≥ €8.7 billion;
  • Adjusted net profit ̴ €5.0 billion;
  • Net industrial cash ̴ €4.0 billion.

 

 

 

Commercial Register No.64236277 Note legali | Credits