fca archives the first quarter of 2019 with an adjusted net profit almost halved every year. However, the group confirms the annual targets and the market, which in recent sessions had penalized Fiat Chrysler shares, shows that it appreciates. About an hour after the publication of the accounts, the title of FCA travels up by one percentage point, after earning 1,5%.
In detail, the financial statements for the January-March period close for the con group a net profit of 619 million (but the figure includes Magneti Marelli, which has just been sold, guaranteeing a maxi coupon to the members), compared to 1,021 billion euros a year ago. During the same period, adjusted net profit went from 963 to 570 million, while the net profit from continuing operations it collapsed from 951 to 508 million.
I Net revenues they stopped at 24,481 billion euros, down from the 25,733 billion recorded in the same period last year.
THEadjusted ebit, on the other hand, fell by 29%, to 1,1 billion euros, with a margin of 4,4% (against 6% in the first quarter of 2018).
In the period, FCA delivered 1.037.000 vehicles, a result that decreased by 14% on an annual basis and - explains the group - mainly caused by the overlap in 2018 of the production of the new and previous generation Jeep Wrangler and by the realignment of commercial strategies in Europe.
Finally, the industrial free cash flow (continuing operation) is a negative 300 million euros. FCA stresses in a note that cash absorption has been limited despite lower results and the seasonality of working capital. Additionally, the impact of lower global volumes was partially offset by continued Ram volume growth.
FCA then recalls that, during the first quarter, it implemented “various actions aimed at strengthening the business, including the renewal of the employment contract in Italy and constant cost initiatives in all Regions”.
During the period, the extension of the collaboration with the group was also announced A dog, under which FCA will increase the production capacity of JV Sevel.
As regards the second semester of the year, according to FCA the launch of new products such as Ram Heavy-Duty and Jeep Gladiator will contribute to margin and volume growth in North America.
“The market is responding enthusiastically to the launch of our new products while we are implementing all the necessary initiatives to strengthen the business areas that have weaker results – comments the FCA CEO, Mike Manley – Based on these elements and with the results for the first quarter in line with our expectations, we are confident in our targets for 2019", which are therefore "confirmed", as anticipated by management during the shareholders' meeting on 12 April.
