Fiat Chrysler profits hit by charges for diesel probe
FCA reports record Adjusted EBIT at EUR 2.0 billion and margin at 6.9%, including Magneti Marelli. NAFTA up 51% with margin at 10.2%, Adjusted Net Profit at EUR 1.4 billion, up 51%. Net Profit down 38% to EUR 0.6 billion, including €0.7 billion charge related to US diesel emissions matters. Operating metrics guidance confirmed; Net industrial cash reflects production realignment to expected demand and accelerated discretionary pension contribution.
1. Worldwide combined shipments(2) of 1,160 thousand units, up 3%, mainly due to NAFTA and LATAM, partially offset by APAC and EMEA
2. Net revenues(1) of EUR 28.8 billion, up 9% (up 11% at constant exchange rates, or CER), with higher shipments, positive pricing and mix
3. Adjusted EBIT(1),(3) of EUR 1,995 million, up 13% (up 16% at CER), with margin up 20 bps to 6.9%
4. Adjusted net profit(1),(3) of EUR 1,396 million, up 51% (up 54% at CER); Net profit of EUR 564 million, down 38% (down 33% at CER) reflecting a EUR 0.7 billion charge for estimated costs related to US diesel emissions matters.
5. Net industrial debt(1) of EUR 0.2 billion, after acceleration of EUR 0.6 billion discretionary pension contribution, net of tax
6. Moody's raised FCA's outlook to positive from stable and affirmed its Corporate Family Rating at "Ba2"
7. Agreement announced to sell Magneti Marelli to CK Holdings Co Ltd. The combined business will operate under the name Magneti Marelli CK Holdings. The agreement represents a transaction value of EUR 6.2 billion
8. Transaction enables payment of an extraordinary dividend of EUR 2 billion at closing, which is in addition to the commencement of an annual ordinary dividend in Spring 2019 of 20% of earnings as presented at 2018 Capital Markets Day. Both are subject to Board of Directors and shareholder approval.
Source : Strategic Research Institute