FCA earnings improve in first quarter
Thu, Apr 30 2015FCA is giving some credit for these strong Q1 results to the automaker's performance in the NAFTA region. Shipments grew 8 percent to 633,000 vehicles, and net revenue jumped a strong 38 percent to $18.1 billion. Adjusted earnings reached $672 million, compared to $425 million in 2014. The company especially praised the Jeep Renegade, Chrysler 200, and Ram 1500 for helping the bottom line. The numbers could have been even higher, but the corporation admitted that "higher warranty and recall costs" partially drug things down.
For the full year in 2015, FCA expects to ship between 4.8 and 5 million vehicles worldwide and post up to $5 billion in adjusted earnings. There should be about $1.3 billion in net profit, as well.
FCA CLOSED Q1 WITH NET REVENUES OF ˆ26.4 BILLION, UP 19% AND ADJUSTED EBIT AT ˆ800 MILLION, UP 22%
30/04/15
FCA closed Q1 with net revenues of ˆ26.4 billion, up 19% and adjusted EBIT at ˆ800 million, up 22%. Net industrial debt was ˆ8.6 billion, up ˆ0.9 billion.
Full year guidance confirmed.
Worldwide shipments were 1.1 million units, 2% lower than Q1 2014, reflecting strong performance in NAFTA and weak market conditions in LATAM. Jeep's positive performance continued with worldwide shipments up 11% and sales up 22%.
Net revenues were up 19% to ˆ26.4 billion (+4% at constant exchange rates, or CER).
Adjusted EBIT was ˆ800 million, up ˆ145 million from Q1 2014, with all segments except LATAM posting positive results. The positive impact of foreign exchange translation was offset by negative impacts at a transactional level.
Net profit was ˆ92 million, up ˆ265 million compared to the net loss of ˆ173 million in Q1 2014.
Net industrial debt was ˆ8.6 billion, up ˆ0.9 billion from year-end mainly due to timing of capital expenditures and working capital seasonality. Liquidity remained strong at ˆ25.2 billion.
The Group confirms its full-year guidance.
Net revenues for Q1 2015 were ˆ26.4 billion, an increase of ˆ4.3 billion, or 19% (+4% CER) from ˆ22.1 billion for first quarter 2014. Higher revenues in NAFTA (+38%; +13% CER), EMEA (+8%; +6% CER) and Components (+17%; +12% CER) were partly offset by decreases in LATAM (-21%; -24% CER) and Maserati (-19%; -29% CER).
Adjusted EBIT was ˆ800 million, up ˆ145 million (+22%) due to improved performance in NAFTA and continued progress in EMEA, which posted a positive result for the second consecutive quarter. The year-over-year results reflect a positive translation impact from the strengthening U.S. Dollar, which was offset by negative transactional impacts, primarily the strengthening of the U.S. Dollar on NAFTA vehicles and components supplied to other regions and the weakening of the Canadian Dollar on revenues from sales in Canada.
NAFTA improved by over ˆ200 million to ˆ601 million driven by higher volumes and improved net pricing, which was partially offset by the negative impacts of the weakened Canadian Dollar and Mexican Peso and increased warranty and recall costs. NAFTA margins improved to 3.7% from 3.2% and excluding the impact of campaign costs were at 5.0% compared to 3.8% a year ago. Adjusted EBIT for LATAM decreased by ˆ109 million to -ˆ65 million, reflecting lower volumes due to the market conditions and Pernambuco start-up costs, partially offset by favorable pricing. Excluding the launch costs for the new Pernambuco plant LATAM would have been at break-even for the quarter. Adjusted EBIT for APAC decreased by ˆ70 million as a result of lower volumes and unfavorable net pricing, primarily due to foreign exchange effects from Chinese Renminbi, Australian Dollar and Japanese Yen.
With regards to the adjustments from EBIT to Adjusted EBIT, it should be noted that the Group Adjusted EBIT for Q1 2014 primarily excludes the one-off charge of ˆ495 million in connection with the UAW Memorandum of Understanding entered into by FCA US in January 2014, the effect of the devaluation of the Venezuelan Bolivar of ˆ94 million and the non-taxable gain of ˆ223 million on the fair value re-measurement of the previously exercised options in connection with the acquisition of FCA US. There were no such similar one-off charges in the current quarter.
Net financial expense totalled ˆ606 million, ˆ113 million higher than in first quarter 2014, primarily due to unfavorable currency translation and higher debt levels in Brazil.
Tax expense totalled ˆ94 million, compared with tax income of ˆ50 million in the first quarter 2014, principally due to an increase in profit before tax when adjusted for non-taxable items.
Net profit for the quarter was ˆ92 million, compared with a loss of ˆ173 million for first quarter 2014, which included the items described above for Adjusted EBIT. Profit attributable to owners of the parent was ˆ78 million compared with a ˆ189 million loss for first quarter 2014.
Net industrial debt at March 31, 2015 was ˆ8.6 billion, up from ˆ7.7 billion at December 31, 2014. The ˆ0.9 billion increase primarily reflects capital expenditures of ˆ2.1 billion, which were ˆ0.6 billion higher than Q1 2014, and seasonal cash absorption from working capital.
Total available liquidity was ˆ25.2 billion, ˆ1.0 billion lower than December 31, 2014. During the quarter, operating cash absorption and ˆ1.5 billion bond repayments at maturity were partially offset by favorable currency translation.
2015 Outlook
The Group confirms its full-year guidance:
Worldwide shipments in 4.8 to 5.0 million unit range;
Net revenues of ~ˆ108 billion;
Adjusted EBIT in ˆ4.1 to ˆ4.5 billion range;
Net Profit in ˆ1.0 to ˆ1.2 billion range, with Basic EPS in ˆ0.64 to ˆ0.77 range;
Net Industrial Debt in ˆ7.5 billion to ˆ8.0 billion range.
Figures do not include any impacts for the previously announced capital transactions regarding Ferrari.
Results by Segment
Shipments were 633,000 vehicles (+8%) and sales1 totaled 587,000 vehicles (+6%). Market share was 12.5% in the U.S (consistent with first quarter 2014) and 16.4% in Canada (down 20 bps).
Net Revenues were ˆ16.2 billion, up 38% (+13% CER) primarily due to volume growth for Jeep Renegade, Chrysler 200 and Ram 1500 and favorable foreign currency translation effects.
Adjusted EBIT of ˆ601 million, as compared with ˆ380 million in first quarter 2014, reflects higher volumes, improved net pricing and purchasing efficiencies, partially offset by higher warranty and recall costs and higher base material costs for vehicle content enhancements. Adjusted EBIT for Q1 2014 excludes the one-off charge of ˆ495 million in connection with the UAW Memorandum of Understanding entered into by FCA US in January 2014. NAFTA margins improved to 3.7% from 3.2% and excluding the impact of campaign costs were at 5.0% compared to 3.8% a year ago.
1 For US and Canada, "Sales" represents sales to end customers as reported by the Group's dealer network.
Shipments were 135,000 vehicles, a decrease of 34% reflecting continued macroeconomic weakness and poor trading conditions in the region's principal markets. Market share in Brazil was 19.7%, down 300 bps, due to the launch of new products by our competitors and pricing pressures, however the Group remained the leader in the market for Q1 with a 250 bps lead over the nearest competitor. In Argentina, market share declined from 13.2% in first quarter 2014 to 12.6% in first quarter 2015 mainly due to continued import restrictions.
Net Revenues were ˆ1.6 billion, down 21% (-24% CER) primarily due to lower volumes.
Adjusted EBIT was -ˆ65 million in first quarter 2015, down from ˆ44 million in first quarter 2014, reflecting lower volumes and unfavorable mix, higher raw material costs, new vehicle launch and Pernambuco start-up costs, partially offset by positive net pricing. Excluding the launch costs for the new Pernambuco plant LATAM would have been at break-even for the quarter. Adjusted EBIT for Q1 2014 excluded the ˆ94 million effect of the devaluation of the Venezuelan Bolivar.
Shipments (excluding JVs) totalled 47,000 vehicles, down 13%, primarily due to competitive market actions and in preparation of localized production. Group retail sales (including JVs) were consistent with first quarter 2014 at 59,000 vehicles.
Net Revenues were ˆ1.5 billion, consistent with Q1 2014, but 17% lower at CER.
Adjusted EBIT was ˆ65 million, a decrease of ˆ70 million driven by lower volumes and unfavorable net pricing, primarily due to foreign exchange effects for vehicle sales in China, Australia, and Japan as well as some increase in incentive levels in China.
Passenger car and light commercial vehicle (LCV) shipments totaled 271,000 units, up 5% over first quarter 2014. Passenger car shipments were up 4% to 212,000 units and LCVs were up 7% to 59,000 units. European passenger car market share (EU28+EFTA) was up 20 bps to 6.2% (28.3% in Italy). For LCVs, European market share2 (EU28+EFTA) was down 40 bps to 11.0% (45.4% in Italy).
Net Revenues were ˆ4.7 billion (+8%) on the back of higher volumes, as well as favorable product mix driven by the all-new Fiat 500X and Jeep Renegade and favorable foreign exchange effects.
Adjusted EBIT for first quarter 2015 was ˆ25 million, compared with -ˆ72 million for the same quarter in 2014. The ˆ97 million improvement in EBIT was primarily attributable to a more favorable product mix - reflecting the continued success of the Fiat 500 family and Jeep brand - in addition to increased volumes, specifically from Fiat 500X and Jeep Renegade, and positive net pricing, which were partially offset by increased sales and marketing spending to support the Jeep brand growth and the Fiat 500X launch.
2 Due to unavailability of market data for Italy since January 2012, the figures reported are an extrapolation and discrepancies with actual data could exist.
Net Revenues were consistent with Q1 2014 at ˆ621 million reflecting favorable currency exchange effects, offset by reduced shipments.
Adjusted EBIT of ˆ100 million, compared with ˆ80 million in first quarter 2014, primarily reflects lower R&D costs, due to timing of model development, and favorable currency exchange effects.
Net revenues totalled ˆ523 million, down 19% (-29% CER) from Q1 2014, primarily due to weaker demand in China.
Adjusted EBIT decreased to ˆ36 million from ˆ59 million in Q1 2014 primarily due to lower volume and unfavorable mix, partially offset by cost efficiencies.
Magneti Marelli
Net revenues were ˆ1.8 billion, a 15% increase over first quarter 2014. Performance was positive in Europe, partially offset by contraction of the market in Brazil.
Adjusted EBIT was ˆ56 million, an increase of ˆ13 million from first quarter 2014 primarily related to higher volumes and the benefit of cost containment actions and efficiencies, partially offset by start-up costs related to the plant in Pernambuco, Brazil.
Teksid
Revenues were ˆ180 million, an 11% growth over first quarter 2014 primarily attributable to a 37% increase in aluminum business volumes, offset by an 8% decrease in cast iron business volumes.
Adjusted EBIT was ˆ1 million, compared with -ˆ4 million in first quarter 2014 primarily from increased cost efficiencies.
Comau
Revenues were ˆ468 million, a 30% increase (+18% CER) from Q1 2014, primarily due to body welding, powertrain and robotics businesses.
Adjusted EBIT was ˆ11 million, a ˆ2 million increase from first quarter 2014 primarily due to increased volumes.
Brand activity in the quarter
The all-new Jeep Renegade began selling in NAFTA, the brand's first small SUV in the region, and was named Kelley Blue Book's "10 Favorite New-for-2015 cars" and Ward's "10 Best Interiors" for 2015. In addition, the Maserati Alfieri was honored as "Concept Car of the Year" by Car Design News at the Geneva Motor Show, while Magneti Marelli technologies (including lighting, powertrain and electronic systems) are on board five of the seven finalists of the prestigious "Car of the Year 2015" award.
New launches during the quarter included the Ram Promaster City compact commercial van, which is derived from the fourth generation Fiat Doblo, and the all-new Fiat 500X, which was launched in Italy with pre-launch events in 16 other countries.
The Alfa Romeo 4C Spider and two new models for Ram, Rebel and Laramie Limited, were also revealed at the Detroit Auto Show in January 2015 and the new Ferrari 488 and the Fiat 500X, with its innovative dual-clutch sequential automatic transmission, were presented at the Geneva Motor Show in March 2015.
Additionally, both the 6.2-liter HEMI® Hellcat and the 3.0-liter EcoDiesel engines were included on Ward's 10 Best Engines list for 2015. This was the second straight year the 3.0-liter EcoDiesel was included on the list.
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This document, and in particular the section entitled "2015 Outlook", contains forward-looking statements. These statements may include terms such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "outlook", "prospects", "plan", "intend", or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on the Group's current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: the Group's ability to reach certain minimum vehicle sales volumes; developments in global financial markets and general economic and other conditions; changes in demand for automotive products, which is highly cyclical; the Group's ability to enrich the product portfolio and offer innovative products; the high level of competition in the automotive industry; the Group's ability to expand certain of the Group's brands internationally; changes in the Group's credit ratings; the Group's ability to realize anticipated benefits from any acquisitions, joint venture arrangements and other strategic alliances; the Group's ability to integrate its operations; potential shortfalls in the Group's defined benefit pension plans; the Group's ability to provide or arrange for adequate access to financing for the Group's dealers and retail customers; the Group's ability to access funding to execute the Group's business plan and improve the Group's business, financial condition and results of operations; various types of claims, lawsuits and other contingent obligations against the Group; disruptions arising from political, social and economic instability; material operating expenditures in relation to compliance with environmental, health and safety regulation; developments in labor and industrial relations and developments in applicable labor laws; increases in costs, disruptions of supply or shortages of raw materials; exchange rate fluctuations, interest rate changes, credit risk and other market risks; our ability to achieve the benefits expected from the proposed separation of Ferrari; political and civil unrest; earthquakes or other natural disasters and other risks and uncertainties.
Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company's financial results, is included in the Company's reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB.
On April 29, 2015, at 3:30 p.m. BST, management will hold a conference call to present the 2015 first quarter results to financial analysts and institutional investors. FCA management will also review NAFTA operational initiatives as well as its view on industry capital optimization. The call can be followed live and a recording will be available later on the Group website (http://www.fcagroup.com/en-us/pages/home.aspx). The supporting document will be made available on the website prior to the call.
London, April 29, 2015
30/04/15
FCA closed Q1 with net revenues of ˆ26.4 billion, up 19% and adjusted EBIT at ˆ800 million, up 22%. Net industrial debt was ˆ8.6 billion, up ˆ0.9 billion.
Full year guidance confirmed.
Worldwide shipments were 1.1 million units, 2% lower than Q1 2014, reflecting strong performance in NAFTA and weak market conditions in LATAM. Jeep's positive performance continued with worldwide shipments up 11% and sales up 22%.
Net revenues were up 19% to ˆ26.4 billion (+4% at constant exchange rates, or CER).
Adjusted EBIT was ˆ800 million, up ˆ145 million from Q1 2014, with all segments except LATAM posting positive results. The positive impact of foreign exchange translation was offset by negative impacts at a transactional level.
Net profit was ˆ92 million, up ˆ265 million compared to the net loss of ˆ173 million in Q1 2014.
Net industrial debt was ˆ8.6 billion, up ˆ0.9 billion from year-end mainly due to timing of capital expenditures and working capital seasonality. Liquidity remained strong at ˆ25.2 billion.
The Group confirms its full-year guidance.
Net revenues for Q1 2015 were ˆ26.4 billion, an increase of ˆ4.3 billion, or 19% (+4% CER) from ˆ22.1 billion for first quarter 2014. Higher revenues in NAFTA (+38%; +13% CER), EMEA (+8%; +6% CER) and Components (+17%; +12% CER) were partly offset by decreases in LATAM (-21%; -24% CER) and Maserati (-19%; -29% CER).
Adjusted EBIT was ˆ800 million, up ˆ145 million (+22%) due to improved performance in NAFTA and continued progress in EMEA, which posted a positive result for the second consecutive quarter. The year-over-year results reflect a positive translation impact from the strengthening U.S. Dollar, which was offset by negative transactional impacts, primarily the strengthening of the U.S. Dollar on NAFTA vehicles and components supplied to other regions and the weakening of the Canadian Dollar on revenues from sales in Canada.
NAFTA improved by over ˆ200 million to ˆ601 million driven by higher volumes and improved net pricing, which was partially offset by the negative impacts of the weakened Canadian Dollar and Mexican Peso and increased warranty and recall costs. NAFTA margins improved to 3.7% from 3.2% and excluding the impact of campaign costs were at 5.0% compared to 3.8% a year ago. Adjusted EBIT for LATAM decreased by ˆ109 million to -ˆ65 million, reflecting lower volumes due to the market conditions and Pernambuco start-up costs, partially offset by favorable pricing. Excluding the launch costs for the new Pernambuco plant LATAM would have been at break-even for the quarter. Adjusted EBIT for APAC decreased by ˆ70 million as a result of lower volumes and unfavorable net pricing, primarily due to foreign exchange effects from Chinese Renminbi, Australian Dollar and Japanese Yen.
With regards to the adjustments from EBIT to Adjusted EBIT, it should be noted that the Group Adjusted EBIT for Q1 2014 primarily excludes the one-off charge of ˆ495 million in connection with the UAW Memorandum of Understanding entered into by FCA US in January 2014, the effect of the devaluation of the Venezuelan Bolivar of ˆ94 million and the non-taxable gain of ˆ223 million on the fair value re-measurement of the previously exercised options in connection with the acquisition of FCA US. There were no such similar one-off charges in the current quarter.
Net financial expense totalled ˆ606 million, ˆ113 million higher than in first quarter 2014, primarily due to unfavorable currency translation and higher debt levels in Brazil.
Tax expense totalled ˆ94 million, compared with tax income of ˆ50 million in the first quarter 2014, principally due to an increase in profit before tax when adjusted for non-taxable items.
Net profit for the quarter was ˆ92 million, compared with a loss of ˆ173 million for first quarter 2014, which included the items described above for Adjusted EBIT. Profit attributable to owners of the parent was ˆ78 million compared with a ˆ189 million loss for first quarter 2014.
Net industrial debt at March 31, 2015 was ˆ8.6 billion, up from ˆ7.7 billion at December 31, 2014. The ˆ0.9 billion increase primarily reflects capital expenditures of ˆ2.1 billion, which were ˆ0.6 billion higher than Q1 2014, and seasonal cash absorption from working capital.
Total available liquidity was ˆ25.2 billion, ˆ1.0 billion lower than December 31, 2014. During the quarter, operating cash absorption and ˆ1.5 billion bond repayments at maturity were partially offset by favorable currency translation.
2015 Outlook
The Group confirms its full-year guidance:
Worldwide shipments in 4.8 to 5.0 million unit range;
Net revenues of ~ˆ108 billion;
Adjusted EBIT in ˆ4.1 to ˆ4.5 billion range;
Net Profit in ˆ1.0 to ˆ1.2 billion range, with Basic EPS in ˆ0.64 to ˆ0.77 range;
Net Industrial Debt in ˆ7.5 billion to ˆ8.0 billion range.
Figures do not include any impacts for the previously announced capital transactions regarding Ferrari.
Results by Segment
Shipments were 633,000 vehicles (+8%) and sales1 totaled 587,000 vehicles (+6%). Market share was 12.5% in the U.S (consistent with first quarter 2014) and 16.4% in Canada (down 20 bps).
Net Revenues were ˆ16.2 billion, up 38% (+13% CER) primarily due to volume growth for Jeep Renegade, Chrysler 200 and Ram 1500 and favorable foreign currency translation effects.
Adjusted EBIT of ˆ601 million, as compared with ˆ380 million in first quarter 2014, reflects higher volumes, improved net pricing and purchasing efficiencies, partially offset by higher warranty and recall costs and higher base material costs for vehicle content enhancements. Adjusted EBIT for Q1 2014 excludes the one-off charge of ˆ495 million in connection with the UAW Memorandum of Understanding entered into by FCA US in January 2014. NAFTA margins improved to 3.7% from 3.2% and excluding the impact of campaign costs were at 5.0% compared to 3.8% a year ago.
1 For US and Canada, "Sales" represents sales to end customers as reported by the Group's dealer network.
Shipments were 135,000 vehicles, a decrease of 34% reflecting continued macroeconomic weakness and poor trading conditions in the region's principal markets. Market share in Brazil was 19.7%, down 300 bps, due to the launch of new products by our competitors and pricing pressures, however the Group remained the leader in the market for Q1 with a 250 bps lead over the nearest competitor. In Argentina, market share declined from 13.2% in first quarter 2014 to 12.6% in first quarter 2015 mainly due to continued import restrictions.
Net Revenues were ˆ1.6 billion, down 21% (-24% CER) primarily due to lower volumes.
Adjusted EBIT was -ˆ65 million in first quarter 2015, down from ˆ44 million in first quarter 2014, reflecting lower volumes and unfavorable mix, higher raw material costs, new vehicle launch and Pernambuco start-up costs, partially offset by positive net pricing. Excluding the launch costs for the new Pernambuco plant LATAM would have been at break-even for the quarter. Adjusted EBIT for Q1 2014 excluded the ˆ94 million effect of the devaluation of the Venezuelan Bolivar.
Shipments (excluding JVs) totalled 47,000 vehicles, down 13%, primarily due to competitive market actions and in preparation of localized production. Group retail sales (including JVs) were consistent with first quarter 2014 at 59,000 vehicles.
Net Revenues were ˆ1.5 billion, consistent with Q1 2014, but 17% lower at CER.
Adjusted EBIT was ˆ65 million, a decrease of ˆ70 million driven by lower volumes and unfavorable net pricing, primarily due to foreign exchange effects for vehicle sales in China, Australia, and Japan as well as some increase in incentive levels in China.
Passenger car and light commercial vehicle (LCV) shipments totaled 271,000 units, up 5% over first quarter 2014. Passenger car shipments were up 4% to 212,000 units and LCVs were up 7% to 59,000 units. European passenger car market share (EU28+EFTA) was up 20 bps to 6.2% (28.3% in Italy). For LCVs, European market share2 (EU28+EFTA) was down 40 bps to 11.0% (45.4% in Italy).
Net Revenues were ˆ4.7 billion (+8%) on the back of higher volumes, as well as favorable product mix driven by the all-new Fiat 500X and Jeep Renegade and favorable foreign exchange effects.
Adjusted EBIT for first quarter 2015 was ˆ25 million, compared with -ˆ72 million for the same quarter in 2014. The ˆ97 million improvement in EBIT was primarily attributable to a more favorable product mix - reflecting the continued success of the Fiat 500 family and Jeep brand - in addition to increased volumes, specifically from Fiat 500X and Jeep Renegade, and positive net pricing, which were partially offset by increased sales and marketing spending to support the Jeep brand growth and the Fiat 500X launch.
2 Due to unavailability of market data for Italy since January 2012, the figures reported are an extrapolation and discrepancies with actual data could exist.
Net Revenues were consistent with Q1 2014 at ˆ621 million reflecting favorable currency exchange effects, offset by reduced shipments.
Adjusted EBIT of ˆ100 million, compared with ˆ80 million in first quarter 2014, primarily reflects lower R&D costs, due to timing of model development, and favorable currency exchange effects.
Net revenues totalled ˆ523 million, down 19% (-29% CER) from Q1 2014, primarily due to weaker demand in China.
Adjusted EBIT decreased to ˆ36 million from ˆ59 million in Q1 2014 primarily due to lower volume and unfavorable mix, partially offset by cost efficiencies.
Magneti Marelli
Net revenues were ˆ1.8 billion, a 15% increase over first quarter 2014. Performance was positive in Europe, partially offset by contraction of the market in Brazil.
Adjusted EBIT was ˆ56 million, an increase of ˆ13 million from first quarter 2014 primarily related to higher volumes and the benefit of cost containment actions and efficiencies, partially offset by start-up costs related to the plant in Pernambuco, Brazil.
Teksid
Revenues were ˆ180 million, an 11% growth over first quarter 2014 primarily attributable to a 37% increase in aluminum business volumes, offset by an 8% decrease in cast iron business volumes.
Adjusted EBIT was ˆ1 million, compared with -ˆ4 million in first quarter 2014 primarily from increased cost efficiencies.
Comau
Revenues were ˆ468 million, a 30% increase (+18% CER) from Q1 2014, primarily due to body welding, powertrain and robotics businesses.
Adjusted EBIT was ˆ11 million, a ˆ2 million increase from first quarter 2014 primarily due to increased volumes.
Brand activity in the quarter
The all-new Jeep Renegade began selling in NAFTA, the brand's first small SUV in the region, and was named Kelley Blue Book's "10 Favorite New-for-2015 cars" and Ward's "10 Best Interiors" for 2015. In addition, the Maserati Alfieri was honored as "Concept Car of the Year" by Car Design News at the Geneva Motor Show, while Magneti Marelli technologies (including lighting, powertrain and electronic systems) are on board five of the seven finalists of the prestigious "Car of the Year 2015" award.
New launches during the quarter included the Ram Promaster City compact commercial van, which is derived from the fourth generation Fiat Doblo, and the all-new Fiat 500X, which was launched in Italy with pre-launch events in 16 other countries.
The Alfa Romeo 4C Spider and two new models for Ram, Rebel and Laramie Limited, were also revealed at the Detroit Auto Show in January 2015 and the new Ferrari 488 and the Fiat 500X, with its innovative dual-clutch sequential automatic transmission, were presented at the Geneva Motor Show in March 2015.
Additionally, both the 6.2-liter HEMI® Hellcat and the 3.0-liter EcoDiesel engines were included on Ward's 10 Best Engines list for 2015. This was the second straight year the 3.0-liter EcoDiesel was included on the list.
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This document, and in particular the section entitled "2015 Outlook", contains forward-looking statements. These statements may include terms such as "may", "will", "expect", "could", "should", "intend", "estimate", "anticipate", "believe", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "outlook", "prospects", "plan", "intend", or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on the Group's current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: the Group's ability to reach certain minimum vehicle sales volumes; developments in global financial markets and general economic and other conditions; changes in demand for automotive products, which is highly cyclical; the Group's ability to enrich the product portfolio and offer innovative products; the high level of competition in the automotive industry; the Group's ability to expand certain of the Group's brands internationally; changes in the Group's credit ratings; the Group's ability to realize anticipated benefits from any acquisitions, joint venture arrangements and other strategic alliances; the Group's ability to integrate its operations; potential shortfalls in the Group's defined benefit pension plans; the Group's ability to provide or arrange for adequate access to financing for the Group's dealers and retail customers; the Group's ability to access funding to execute the Group's business plan and improve the Group's business, financial condition and results of operations; various types of claims, lawsuits and other contingent obligations against the Group; disruptions arising from political, social and economic instability; material operating expenditures in relation to compliance with environmental, health and safety regulation; developments in labor and industrial relations and developments in applicable labor laws; increases in costs, disruptions of supply or shortages of raw materials; exchange rate fluctuations, interest rate changes, credit risk and other market risks; our ability to achieve the benefits expected from the proposed separation of Ferrari; political and civil unrest; earthquakes or other natural disasters and other risks and uncertainties.
Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company's financial results, is included in the Company's reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB.
On April 29, 2015, at 3:30 p.m. BST, management will hold a conference call to present the 2015 first quarter results to financial analysts and institutional investors. FCA management will also review NAFTA operational initiatives as well as its view on industry capital optimization. The call can be followed live and a recording will be available later on the Group website (http://www.fcagroup.com/en-us/pages/home.aspx). The supporting document will be made available on the website prior to the call.
London, April 29, 2015
- News Source: FCA
- Image Credit: Giuseppe Cacace / AFP / Getty Images
- Earnings/Financials
- Chrysler
- Fiat
- FCA
- fca us
By Chris Bruce
See also: FCA recalling 63k Jeeps, Vipers and Ram ProMaster City vans, FCA recalling 63k Jeeps, Vipers and Ram ProMaster City vans, Wards names its 2015 10 Best Interiors list.