Fiat Chrysler confirms the 2016 targets and presents strong growth in the quarter. In the note accompanying the first quarter accounts, the group explains that it expects net revenues of over 110 billion euros for the current year with an adjusted Ebit of over 5 billion, an adjusted net profit of over 1,9 billion and industry below 5 billion euros.
The group closed the first quarter with margins supported by the good performance of the Nafta area, which represents, in terms of operating profit, almost 90% of the total, but with debt above expectations.
According to the company's note, adjusted Ebit amounted to 1,38 billion euros, approximately double the first quarter of 2015 (700 million). Revenues rose to 25,57 billion (+3%), EPS to 0,338 euro, net industrial debt to 6,593 billion against 5,049 in 2015. Adjusted net profit rose from 31 million last year to 528 million in current quarterly.
The consensus estimates reported by some analysts indicate for the quarter net revenues at 27,6-27,8 billion, adjusted Ebit at 1,1-1,23 billion, Eps at 23-24 cents.
NAFTA margins are 7,2%, up from 6,4% in 2015 and 7,1% in the fourth quarter of 2015. In the first quarter of 2015, the percentage was 3,7%.
Market share is up to 13,2% (+70 bps) in the United States and 6,7% (+50 bps) in Europe. Market leadership in Brazil confirmed with an advantage of 180 basis points over the closest competitor. Jeep sales in APAC up 17% thanks to local production.
During the quarter, the note continues, production of the new Chrysler Pacifica, the Maserati Levante and the Fiat Mobi began. In China, production of the Jeep Renegade started in April.
This is the first quarter in which Ferrari is not consolidated in the group accounts.
Despite the record results, the debt data had an initial negative impact on share prices which had remained positive throughout the morning and which, after the presentation of the accounts, recorded a decline, also influenced by fears that the US market is at its peak, analysts say. However, after the first slip, the shares rose at 13,40 pm: 7,23 euros (+0,07%).
