Net income goes up, but debt is still high and there is no dividend coming for Fiat shareholders. Immediately after the communication of the data relating to 2013 and the forecasts for 2014, the stock market share of the automotive group (which gained 24,34% in the last month) dropped 4,4% (with a move to volatility auction), achieving the worst performance of the Ftse Mib.
Last year, Lingotto's net profit rose to 1,951 billion euros from 896 million in 2012. Trading profit fell by 4%, to 3,39 billion, against expectations for around 3,6 billion. Revenues, at 87 billion euros, grew by 3% in nominal terms and by 7% when measured at constant exchange rates. The revenues of luxury brands are growing strongly, with Maserati more than doubling the result of 2012. For the second consecutive year, the Jeep brand also achieved an all-time record in global sales with 732 vehicles.
At December 31, 2013, the Fiat group's net industrial debt was 6,6 billion euros, down from the 8,3 billion euros recorded at September 30, 2013 thanks to the positive cash flows generated in the quarter by Chrysler (1,4 .0,3 billion euros) and by Fiat excluding Chrysler (2013 billion euros). The increase in net industrial debt for all of 0,1 was 0,1 billion euros. Excluding equity investments, cash flow was positive by €31 billion. At December 2013, 0,2, Chrysler had a net cash position of €XNUMX billion.
CHRYSLER: 2013 PROFIT RISES TO $2,8 BILLION
Chrysler Group, now fully controlled by Fiat, in the fourth quarter of 2013 saw its net profit grow to 1,62 billion dollars from 378 million in the same period last year. This is the tenth positive quarter in a row. For the three months, operating income was $659 million, up 74 percent from $378 million in the same period a year earlier. Net revenues for the quarter were $21,201 billion, up 24% from $17,152 billion in the same period of 2012.
For the full year 2013, the Detroit giant reported profits of 2,757 billion dollars, more than the 1,668 billion of 2012. For the year, Chrysler reported an operating profit of 1,819 billion dollars, 9% more than the 1,668 billion of 2012. Net sales for the year were $72,144 billion, up 10% from $65,784 billion in 2012.
"The financial results at the end of 2013 reflect the commitment that Chrysler Group has made to rapidly renew the product range with vehicles that meet stringent standards in terms of performance," commented the CEO of Chrysler and Fiat, Sergio Marchionne.
FIAT, 2014 ESTIMATIONS: REVENUES AT 93 BILLION AND NET PROFIT AT 0,6-0,8 BILLION
For 2014, the Fiat group expects revenues of approximately 93 billion euros, trading profit between 3,6 and 4,0 billion euros, net income between 0,6 and 0,8 billion (analysts had forecast an average approximately billion), with earnings per share improving from approximately €0,10 (excluding atypical management) to a range between approximately €0,44 and €0,60.
Net industrial debt is expected to be between €9,8 billion and €10,3 billion, also taking into account the payment (€2,7 billion) for the acquisition of the remaining 41,5% stake in Chrysler from the Veba Trust and the effect deriving from the adoption of Ifrs 11, from 1 January 2014 (approximately €0,3 billion).
THE BOARD PROPOSES NOT TO DISTRIBUTE DIVIDEND
Fiat's board of directors has decided not to recommend the distribution of a dividend to the shares, considering that the company "intends to maintain a balanced level of liquidity following the acquisition of the minority stake in Chrysler Group". At December 31, 2013, total available liquidity, including unused committed credit lines of €3 billion, was €22,7 billion, up €2,6 billion on September 30, 2013. For Fiat excluding Chrysler , the total available liquidity amounted to 12,1 billion euro. For Chrysler it was equal to 10,6 billion euros.
