FCA beats itself and ends 2015 with growth, with results exceeding the year's targets. Including Ferrari, net revenues rose 18% to €113,2 billion, adjusted EBIT rose 40% to €5,3 billion and adjusted net profit increased by 91% to 2,0 billion euros. Vehicles delivered globally there were 4,6 million units, in line with 2014, while the Jeep brand boom continues, with a record level of 1,3 million units delivered, up 21%. The demerger of Ferrari allowed the Group to start 2016 with net industrial debt of 5,0 billion euros.
This was communicated by the FCA group with a note in which it is specified that the 2014-18 business plan will be adjusted according to the exit of Ferrari which took place on 3 January last. The details will be illustrated during the conference call this afternoon at 16,30pm.
UPDATE 2016
The new targets were evaluated with disappointment by the operators who penalized the FCA stock (which came to lose more than 4%). In particular, net revenues improved to 110 billion euros (111 billion is the final figure for 2015 excluding Ferrari) against 104 in the plan, adjusted EBIT 5,0 billion (against 4,8 billion in 2015). The adjusted net profit, on the other hand, falls in the low range of the plan (from 1,9 to 2,5 billion) at 1,9 billion euro (1,7 billion last year). Net industrial debt unchanged. The group expects NAFTA and EMEA to improve while LATAM is expected to return to a slight profit with the Pernambuco plant fully operational in the second half of 2016. APAC's profitability is expected to improve in the second half of 2016 with the completion of the production location of Jeep in China. Maserati's performance is expected to improve in the second half of 2016 following the launch of the Levante. Investments will remain in line with 2015.
Returning instead to 2015, the adjusted Ebit including Ferrari – adjusted for one-off items, capital losses/gains – amounted to €5,3 billion, up 40% from €3,8 billion in 2014, with NAFTA more than doubling the result and EMEA which returned to profit a year ahead of plan. All business segments recorded positive results in the fourth quarter of 2015.
Adjusted net profit including Ferrari was €2,0 billion, up 91% from €1,1 billion in 2014. The net profit for the year decreased to 377 million euros (632 million in 2014) and "includes the charges recorded in the third quarter following the change in the estimate made to reflect the current regulatory context and the recall campaigns - specifies the automotive group - in addition to the charges recorded in the fourth quarter in relation to the planned realignment to market trends of production capacity in NAFTA.
As of December 31, 2015, net industrial debt amounted to 6,0 billion euro, a decrease compared to 7,7 billion euro as at 31 December 2014. “The reduction – specifies the press release – reflects for 9,7 billion euro the positive cash flow from operating for 0,7 billion euros the positive effect of foreign exchange translations, mainly due to the devaluation of the Brazilian Real, partly offset by 9,2 billion euros of investments. The reduction also reflects proceeds of €0,9 billion relating to the IPO of 10% of Ferrari and €0,3 billion paid to minority shareholders. Following the completion of the Ferrari demerger on January 3, 2016, net industrial debt decreased to 5,0 billion euros.
Available liquidity remained strong at €25,2 billion.
Following the completion of the Ferrari demerger, net industrial debt decreased to €5,0 billion and available liquidity decreased marginally to €24,6 billion.
FERRARI AND MASERATI
Following the demerger from the FCA group, Ferrari's debt is negative by 963 million euros at the end of 2015. This is what emerges from the financial data published by FCA which, as the Maranello company indicates in a note, "are not necessarily consistent with the financial data that will be communicated by Ferrari (on 2 February, ed.) as those published by FCA reflect internal allocations and eliminations between the FCA group and Ferrari which will not be applied by Ferrari in the presentation of its separate consolidated financial data”. Ferrari will separately announce its 2015 and fourth quarter accounts following board approval at its February 2 board meeting.
In its press release, referring to the main business sectors, FCA specifies that Ferrari deliveries increased in 2015 to 2.596 units (from 2.450 in 2014), a Adjusted EBIT attributed to the Red rose to 473 million (from 404 million) and the net profit increased to 284 million (from 273 million).
Last year Maserati has registered a 13% drop in revenues to over 2,41 billion euros (-22% at constant exchange rates) compared to a year earlier due to lower volumes of the Quattroporte linked to weak demand in the reference segment in the USA and China and a Adjusted Ebit more than halved to 105 million (from 275 million in 2014) due to lower volumes, the unfavorable mix and higher industrial costs relating to the production start-up of the new Levante SUV which will be launched in 2016. Deliveries of the Trident manufacturer were down to 32.474 units, from 36.448. In the fourth quarter Maserati's revenues rose from 728 to 762 million, while the Adjusted Ebit slipped to 14 million from 65 million. Deliveries dropped by 49 units to 9.971.
THE REACTIONS
Marco Bentivogli, secretary general of the Fim-Cisl, commented very positively, highlighting “the increase in production +66% and in employment with +2850 stabilized. On 16 March at the Lingotto we meet Marchionne - he also states - to verify the objectives of the 2018 plan. The 2015 data - he concludes - concretely highlight 2015 as a turning point for FCA, after a period of severe crisis in the sector. It was characterized by high growth in volumes and a stable increase in employment with a substantial drop in layoffs from 30% in 2013 to around 10% last year”.
(last updated at 14,15pm)
