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BORSA ITALIANA
EUR 14.86 +0.07 %
NYSE
USD 17.6 -1.73 %
Search

FCA: 2017 Third Quarter Results

FCA posts record third quarter: Adjusted EBIT up 17% to €1.8 billion, Adjusted Net Profit up 25% to €922 million, Net Profit up 50% to €910 million and Adjusted EBIT margin of 6.7%, up 110 bps. Full-year guidance is confirmed.

 

  • Worldwide combined shipments(1) of 1,123 thousand units, in line with Q3 2016

  • Net revenues of €26.4 billion, down 2% (up 2% at constant exchange rates, or CER)

  • Adjusted EBIT of €1,758 million, up 17% (up 23% at CER) with all segments profitable and higher than prior year

  • Group margin of 6.7%, up 110 bps; higher margins in all segments: NAFTA at 8.0%, Maserati at 13.8% and Components at 5.3%

  • Adjusted net profit of €922 million, up 25%; Net profit of €910 million, up 50%

  • Net industrial debt of €4.4 billion, €0.2 billion higher than June 2017 (unchanged at CER)

  • During the quarter, S&P raised FCA's outlook to positive from stable and affirmed its long-term debt rating at "BB"

 

 

FINANCIAL RESULTS

Nine months ended September 30 Three months ended September 30
20172016Change(€ million, except as otherwise noted)20172016Change
3,4933,4876–%Combined shipments(1) (thousands of units)1,1231,123–%
3,2673,327(60)(2)%Consolidated shipments(1) (thousands of units)1,0511,066(15)(1)%
82,05881,299759+1%Net revenues26,41426,836(422)(2)%
5,1604,507653+14%Adjusted EBIT(2)1,7581,500258+17%
2,7061,4051,301+93%Net profit910606304+50%
2,6731,977696+35%Adjusted net profit(2)922740182+25%
1.7340.8900.844 Diluted earnings per share (EPS) (€)0.5840.3880.196 
1.7131.2560.457 Adjusted diluted EPS(2) (€)0.5920.4740.118 
At September 30, 2017At December 31, 2016Change At September 30, 2017At June 30, 2017Change
(4,405)(4,585)180Net industrial debt(2)(4,405)(4,226)(179)
(18,640)(24,048)5,408Debt(18,640)(19,140)500
19,54723,801(4,254)Available liquidity19,54719,953(406)

ADJUSTED EBIT

  • Record Q3, all segments improved

  • Continued strong performance in NAFTA with margin up 40 bps to 8.0% despite lower shipments

  • LATAM margin up to 2.8%

  • Higher APAC results reflecting insurance recoveries relating to Q3 2015 Tianjin (China) port explosions

  • Maserati margin up 200 bps to 13.8%

ADJUSTED NET PROFIT

  • Adjusted net profit up 25%, reflecting continued strong operating performance

  • Net financial expenses of €321 million, down €207 million primarily as a result of ongoing gross debt reduction

  • Tax expense in Adjusted net profit of €515 million, up €283 million primarily due to higher Profit before tax along with reduced tax credits

NET INDUSTRIAL DEBT

  • Increase of €179 million from June 2017 attributable to negative foreign exchange translation effects

  • Cash flows from operations improved by €1.2 billion from prior year

  • Available liquidity remained strong at €19.5 billion, down €0.4 billion from June 2017, unchanged at CER

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 6 for reconciliations of Net profit to Adjusted EBIT, Net profit to Adjusted net profit and Diluted EPS to Adjusted diluted EPS and page 7 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 Third Quarter Results