FCA: 2017 First Quarter Results

FCA reports record first quarter with Adjusted EBIT of €1.5 billion, up 11%, margin increasing to 5.5%; Adjusted Net Profit up 27% to €0.7 billion and Net Profit of €0.6 billion. Full-year guidance is confirmed.

 

  • Worldwide combined shipments(1) of 1,145 thousand units, substantially in line with Q1 2016

  • Net revenues of €27.7 billion, up 4%

  • Adjusted EBIT of €1,535 million, up 11% with improvement in all segments except LATAM

  • Adjusted net profit of €671 million, up 27%; Net profit of €641 million, up 34%

  • Net industrial debt of €5.1 billion, limiting the seasonal increase to €0.5 billion from December 2016, compared to an increase of €1.5 billion for Q1 2016

  • Liquidity strong at €21.6 billion, including extended syndicated revolving credit facility at €6.25 billion, up-sized from €5.0 billion

  • Moody's Investors Service improved FCA outlook to positive from stable and affirmed Ba3 corporate credit rating

 

FINANCIAL RESULTS

 
 Three months ended March 31
(€ million, except as otherwise noted)20172016Change
Combined shipments (1) (thousands of units)1,1451,13114+1%
Consolidated shipments (1) (thousands of units)1,0781,086(8)(1)%
Net revenues27,71926,5701,149+4%
Adjusted EBIT(2)1,5351,379156+11%
Net profit641478163+34%
Adjusted net profit(2)671528143+27%
Diluted earnings per share (EPS) (€)0.4110.3060.105 
Adjusted diluted EPS (2) (€)0.4300.3380.092 
 At March 31, 2017At December 31, 2016Change
Net industrial debt (2)(5,112)(4,585)(527) 
Debt(21,156)(24,048)2,892 
Available liquidity21,57623,801(2,225) 

ADJUSTED EBIT

  • Delivered record Q1 results despite NAFTA volumes being impacted by planned manufacturing changes

  • Group margin up 30 bps to 5.5%

  • EMEA margin at 3.2%, up 130 bps from 1.9%; NAFTA margin up to 7.3%

  • Maserati margin improves to 11.3% from 3.1%; third consecutive quarter of double-digit margin

ADJUSTED NET PROFIT

  • Increase driven by continued strong operating performance

  • Net financial expenses of €436 million, down €76 million primarily as a result of gross debt reduction

  • Tax expense of €428 million, with effective tax rate of 39%, in line with prior year

NET INDUSTRIAL DEBT

  • Increase of €0.5 billion in Net industrial debt mainly driven by negative working capital seasonality

  • Cash flows from operations, net of capital expenditures, improved €0.4 billion from Q1 2016

  • Available liquidity remained strong at €21.6 billion, down €2.2 billion from December 2016 primarily reflecting planned gross debt reduction, partially offset by €1.25 billion increase in the extended syndicated revolving credit facility

2017 GUIDANCE (3)

The Group confirms full-year guidance:

  • Net revenues €115 - €120 billion

  • Adjusted EBIT > €7.0 billion

  • Adjusted net profit > €3.0 billion

  • Net industrial debt < €2.5 billion

 

 

 

1  Combined shipments include all shipments by the Group's unconsolidated joint ventures, whereas consolidated shipments only include shipments from the Group's consolidated subsidiaries;

2  Refer to page 7 for reconciliations of Net profit to Adjusted EBIT, Net profit to Adjusted net profit and Diluted EPS to Adjusted diluted EPS and page 8 for the reconciliation of Debt to Net industrial debt;

3  Guidance is not provided on the most directly comparable IFRS financial statement line item for Adjusted EBIT and Adjusted net profit as the income or expense excluded from these non-GAAP financial measures in accordance with our policy are, by definition, not predictable and uncertain.

  • FCA: 2017 First Quarter Results