FCA Board of Directors' Meeting: Third Quarter 2014 Results
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FCA third-quarter revenues up 14% to EUR23.6 billion and EBIT up 7% at EUR0.9 billion. Net industrial debt at EUR11.4 billion reflecting seasonality and liquidity stable at EUR21.7 billion. Full-year guidance confirmed.
LONDON -- October 29, 2014: Worldwide shipments were 1.1 million units, an increase of 10% driven by strong sales performance in NAFTA.
Revenues were up 14% to €23.6 billion.
EBIT was €926 million, up 7% (+10% at constant exchange rates - CER) with improvements in all segments except LATAM where weak market conditions continued.
Net profit was €188 million in line with Q3 2013.
Net industrial debt was up €1.7 billion in the quarter, due to normal seasonality and in line with the change in Q3 2013.
Group confirms full-year guidance.
"The Group's third-quarter results demonstrate a solid performance in the face of challenging market conditions particularly in Latin America," said FCA CEO Sergio Marchionne, "and we are on track to deliver on our full-year targets for 2014. With the formal creation of FCA and its debut listing on the NYSE, we have embarked on a new phase as a global company with even greater possibilities."
| FIAT CHRYSLER AUTOMOBILES - Highlights | ||||||||
| Nine months to September 30 | 3rd Quarter | |||||||
| 2014 | 2013(*) | Change | (€ million) | 2014 | 2013(*) | Change | ||
| 3,393 | 3,181 | 212 | Total Shipments (000s) | 1,099 |
1,002 | 97 | ||
| 69,006 | 62,681 | 6,325 | Net Revenues | 23,553 | 20,693 | 2,860 | ||
| 2,157 | 2,542 | -385 | EBIT (**) | 926 |
862 | 64 | ||
| 5,756 | 5,936 | -180 | EBITDA (**) (1) | 2,166 | 2,030 | 136 | ||
| 647 | 1,089 | -442 | Profit Before Taxes | 415 |
369 | 46 | ||
| 212 | 655 | -443 | Net Profit | 188 | 189 | -1 | ||
| 0.132 | 0.036 | - | EPS (€) |
0.143 | (0.013) | - | ||
| 11,372 | 7,014(3) | 4,358 |
Net Industrial Debt | 11,372 | 9,704(2) | 1,668 |
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| 21,741 | 22,745(3) | -1,004 | Total Available Liquidity | 21,741 | 21,771(2) | -30 |
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(*) Adjusted for the retrospective application of IFRS 11. For Q3, Revenues -€40 million, EBIT +€6 million, Profit Before Taxes +€2 million, Net Profit unchanged. For nine months to September 30, Revenues -€134 million, EBIT +€26 million, Profit Before Taxes +€7 million, Net Profit unchanged. Shipments for both periods adjusted to include Luxury Brands. (1)
EBIT plus Depreciation and Amortization. (2) At June 30, 2014.
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| (**) includes unusual items of: | ||||||||
| (417) | (36) | Total unusual items (pre-tax) (4) | (36) | (1) | ||||
| (4) Includes: Gain/(losses) on the disposal of investments, Restructuring, Other unusual income/(expenses). Memo items | ||||||||
| Nine months to September 30 | 3rd Quarter | |||||||
| 2014 | 2013 | Change | (€ million) | 2014 | 2013 | Change | ||
| 509 |
691 |
-182 | Net profit ex-unusual items | 224 |
190 |
34 | ||
| 0.374 | 0.072 | - |
EPS ex-unusual items (€) | 0.171 | (0.009) | - | ||
EBIT totaled €926 million for the quarter, a 7% increase (+10% CER) from €862 million for Q3 2013. Excluding unusual items, EBIT increased by €99 million on the back of strong performance for APAC and Luxury Brands. EMEA reduced EBIT losses by 46%, benefiting primarily from better product mix. For NAFTA, EBIT was up €13 million, despite the impact of higher warranty and recall costs. For LATAM, there was a decrease of €118 million reflecting lower volumes, €15 million in higher unusual charges and €14 million in start-up costs for the Pernambuco plant.
Net financial expense totaled €511 million, €18 million higher than in Q3 2013. Excluding the impact of the Fiat stock option-related equity swaps, which expired in Q4 2013 (gain of €24 million in Q3 2013), net financial expense was substantially in line with the prior year, reflecting the benefits of the Chrysler refinancing transactions completed in February which offset the impact of higher average debt levels.
Income taxes totaled €227 million, compared with €180 million in Q3 2013, principally due to higher deferred tax expenses compared to prior year.
Net profit for the quarter was €188 million, in line with Q3 2013. Profit attributable to owners of the parent was €174 million compared with a €15 million loss for Q3 2013.
Net industrial debt at September 30, 2014 was €11.4 billion, up from €9.7 billion at June 30, 2014. The €1.7 billion increase primarily reflects seasonal cash absorption. Investments in tangible and intangible assets rose to €2.1 billion, in line with full-year guidance, from €1.8 billion in Q3 2013.
Total available liquidity was €21.7 billion, in line with June 30, 2014. During the quarter, operating cash absorption and bond repayments at maturity (€2.1 billion) were offset by new bond issuances (€1.6 billion) and bank financing, as well as a favorable €0.9 billion currency translation effect.
2014 Outlook
Group confirms full-year guidance as presented in the Q2 2014 results:
Worldwide shipments at ~4.7 million units;
Revenues of ≥€93 billion;
EBIT(*) in €3.6 to €4.0 billion range;
Net Income in ~€0.6 to €0.8 billion range, with EPS to improve from ~€0.10 (ex-unusual items) to ~€0.44-€0.60. Includes increased deferred tax charge of ~€0.5 billion due to the recognition of net deferred tax assets at year-end 2013 related to Chrysler and excludes unusual items;
Net Industrial Debt in €9.8 billion to €10.3 billion range. Includes cash outflows for the January 21st, 2014 closing of the purchase of the remaining 41.5% minority stake in Chrysler Group LLC from the VEBA Trust (€2.7 billion), in addition to the impact of the retrospective adoption of IFRS 11, effective January 1st, 2014 (~€0.4 billion).
