SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of October 2014
Commission File No. 001-36675
FIAT CHRYSLER AUTOMOBILES N.V.
(Translation of Registrant’s Name Into English)
Fiat House
240 Bath Road
Slough SL1 4DX
United Kingdom
Tel. No.: +44 (0) 1753 519581
(Address of Principal Executive Offices)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ¨ No x
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
The following exhibits are furnished herewith:
| Exhibit 99.1 | Press release, dated October 29, 2014, titled: “Fiat Chrysler Automobiles N.V. Quarterly Report for the quarter ended September 30, 2014” |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: October 29, 2014 | FIAT CHRYSLER AUTOMOBILES N.V. | |||||||
| By: | /s/ Richard K. Palmer | |||||||
| Name: | Richard K. Palmer | |||||||
| Title: | Chief Financial Officer | |||||||
Index of Exhibits
| Exhibit Number |
Description of Exhibit | |
| 99.1 | Press release, dated October 29, 2014, titled: “Fiat Chrysler Automobiles N.V. Quarterly Report for the quarter ended September 30, 2014” | |
Exhibit 99.1
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FCA third-quarter revenues up 14% to €23.6 billion and EBIT up 7% at €0.9 billion. Net industrial debt at €11.4 billion reflecting seasonality and liquidity stable at €21.7 billion. Full-year guidance confirmed.
| • | Worldwide shipments were 1.1 million units, an increase of 10% driven by strong sales performance in NAFTA. |
| • | Revenues were up 14% to €23.6 billion. |
| • | EBIT was €926 million, up 7% (+10% at constant exchange rates—CER) with improvements in all segments except LATAM where weak market conditions continued. |
| • | Net profit was €188 million in line with Q3 2013. |
| • | Net industrial debt was up €1.7 billion in the quarter, due to normal seasonality and in line with the change in Q3 2013. |
| • | Group confirms full-year guidance. |
London, October 29—“The Group’s third-quarter results demonstrate a solid performance in the face of challenging market conditions particularly in Latin America,” said FCA CEO Sergio Marchionne, “and we are on track to deliver on our full-year targets for 2014. With the formal creation of FCA and its debut listing on the NYSE, we have embarked on a new phase as a global company with even greater possibilities.”
FIAT CHRYSLER AUTOMOBILES—Highlights
| Nine months to September 30 | 3rd Quarter | |||||||||||||||||||||||
| 2014 | 2013(*) | Change | (€ million) |
2014 | 2013(*) | Change | ||||||||||||||||||
| 3,393 | 3,181 | 212 | Total Shipments (000s) | 1,099 | 1,002 | 97 | ||||||||||||||||||
| 69,006 | 62,681 | 6,325 | Net Revenues | 23,553 | 20,693 | 2,860 | ||||||||||||||||||
| 2,157 | 2,542 | -385 | EBIT (**) | 926 | 862 | 64 | ||||||||||||||||||
| 5,756 | 5,936 | -180 | EBITDA (**) (1) | 2,166 | 2,030 | 136 | ||||||||||||||||||
| 647 | 1,089 | -442 | Profit Before Taxes | 415 | 369 | 46 | ||||||||||||||||||
| 212 | 655 | -443 | Net Profit | 188 | 189 | -1 | ||||||||||||||||||
| 0.132 | 0.036 | — | EPS (€) | 0.143 | (0.013 | ) | — | |||||||||||||||||
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| 11,372 | 7,014 | (3) | 4,358 | Net Industrial Debt | 11,372 | 9,704 | (2) | 1,668 | ||||||||||||||||
| 21,741 | 22,745 | (3) | -1,004 | Total Available Liquidity | 21,741 | 21,771 | (2) | -30 | ||||||||||||||||
| (*) | Adjusted for the retrospective application of IFRS 11. For Q3, Revenues -€40 million, EBIT +€6 million, Profit Before Taxes +€2 million, Net Profit unchanged. For nine months to September 30, Revenues -€134 million, EBIT +€26 million, Profit Before Taxes +€7 million, Net Profit unchanged. Shipments for both periods adjusted to include Luxury Brands. |
| (1) | EBIT plus Depreciation and Amortization. (2) At June 30, 2014. (3) At December 31, 2013, adjusted for the retrospective application of IFRS 11: Net Industrial Debt +€365 million, Total Available Liquidity +€16 million. |
| (**) | includes unusual items of: |
| (417) | (36 | ) | Total unusual items (pre-tax) (4) | (36 | ) | (1 | ) |
| (4) | Includes: Gain/(losses) on the disposal of investments, Restructuring, Other unusual income/(expenses). |
| Memo items | ||||||||||||||||||||||
| Nine months to September 30 | 3rd Quarter | |||||||||||||||||||||
| 2014 | 2013 | Change | (€ million) |
2014 | 2013 | Change | ||||||||||||||||
| 509 | 691 | -182 | Net profit ex-unusual items | 224 | 190 | 34 | ||||||||||||||||
| 0.374 | 0.072 | — | EPS ex-unusual items (€) | 0.171 | (0.009 | ) | — | |||||||||||||||
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Revenues increased by €2.9 billion year-over-year to €23.6 billion, driven mainly by NAFTA (+20%), APAC (+30%) and Luxury Brands (+35%), with increases also for EMEA (+6%) and Components (+11%). These increases were partly offset by a 12% reduction for LATAM, where vehicle shipments were down 14% due to continued weakness in the region’s main markets.
EBIT totaled €926 million for the quarter, a 7% increase (+10% CER) from €862 million for Q3 2013. Excluding unusual items, EBIT increased by €99 million on the back of strong performance for APAC and Luxury Brands. EMEA reduced EBIT losses by 46%, benefiting primarily from better product mix. For NAFTA, EBIT was up €13 million, despite the impact of higher warranty and recall costs. For LATAM, there was a decrease of €118 million reflecting lower volumes, €15 million in higher unusual charges and €14 million in start-up costs for the Pernambuco plant.
Net financial expense totaled €511 million, €18 million higher than in Q3 2013. Excluding the impact of the Fiat stock option-related equity swaps, which expired in Q4 2013 (gain of €24 million in Q3 2013), net financial expense was substantially in line with the prior year, reflecting the benefits of the Chrysler refinancing transactions completed in February which offset the impact of higher average debt levels.
Income taxes totaled €227 million, compared with €180 million in Q3 2013, principally due to higher deferred tax expenses compared to prior year.
Net profit for the quarter was €188 million, in line with Q3 2013. Profit attributable to owners of the parent was €174 million compared with a €15 million loss for Q3 2013.
Net industrial debt at September 30, 2014 was €11.4 billion, up from €9.7 billion at June 30, 2014. The €1.7 billion increase primarily reflects seasonal cash absorption. Investments in tangible and intangible assets rose to €2.1 billion, in line with full-year guidance, from €1.8 billion in Q3 2013.
Total available liquidity was €21.7 billion, in line with June 30, 2014. During the quarter, operating cash absorption and bond repayments at maturity (€2.1 billion) were offset by new bond issuances (€1.6 billion) and bank financing, as well as a favorable €0.9 billion currency translation effect.
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2014 Outlook
Group confirms full-year guidance as presented in the Q2 2014 results:
| • | Worldwide shipments at ~4.7 million units; |
| • | Revenues of ³€93 billion; |
| • | EBIT(*) in €3.6 to €4.0 billion range; |
| • | Net Income in ~€0.6 to €0.8 billion range, with EPS to improve from ~€0.10 (ex-unusual items) to ~€0.44-€0.60. Includes increased deferred tax charge of ~€0.5 billion due to the recognition of net deferred tax assets at year-end 2013 related to Chrysler and excludes unusual items; |
| • | Net Industrial Debt in €9.8 billion to €10.3 billion range. Includes cash outflows for the January 21st, 2014 closing of the purchase of the remaining 41.5% minority stake in Chrysler Group LLC from the VEBA Trust (€2.7 billion), in addition to the impact of the retrospective adoption of IFRS 11, effective January 1st, 2014 (~€0.4 billion). |
| (*) | excluding unusual items |
FIAT CHRYSLER AUTOMOBILES
Net Debt and Available Liquidity
| (€ million) |
30.09.2014 | 30.06.2014 | 31.12.2013(*) | |||||||||
| Cash Maturities (Principal) |
(31,903 | ) | (30,856 | ) | (28,899 | ) | ||||||
| Bank Debt |
(12,518 | ) | (11,277 | ) | (8,932 | ) | ||||||
| Capital Market Instruments (1) |
(17,161 | ) | (17,349 | ) | (14,220 | ) | ||||||
| Other Debt (2) |
(2,224 | ) | (2,230 | ) | (5,747 | ) | ||||||
| Asset-backed Financing (3) |
(377 | ) | (545 | ) | (756 | ) | ||||||
| Accruals and Other Adjustments (4) |
(582 | ) | (503 | ) | (601 | ) | ||||||
| Gross Debt |
(32,862 | ) | (31,904 | ) | (30,256 | ) | ||||||
| Cash & Marketable Securities |
18,608 | 18,719 | 19,702 | |||||||||
| Derivative Assets/(Liabilities) |
(196 | ) | 73 | 396 | ||||||||
| Net Debt |
(14,450 | ) | (13,112 | ) | (10,158 | ) | ||||||
| Industrial Activities |
(11,372 | ) | (9,704 | ) | (7,014 | ) | ||||||
| Financial Services |
(3,078 | ) | (3,408 | ) | (3,144 | ) | ||||||
| Undrawn committed credit lines |
3,133 | 3,052 | 3,043 | |||||||||
| Total Available Liquidity |
21,741 | 21,771 | 22,745 | |||||||||
| (*) | Adjusted for the retrospective application of IFRS 11: Net debt at year end increased by €365 million (fully attributable to Industrial Activities). |
| (1) | Includes bonds and other securities issued in the financial markets. |
| (2) | Includes HCT Notes, arrangements accounted for as a lease under IFRIC 4 – Determining whether and arrangement contains a lease, and other non-bank financing. (At year end 2013, also included VEBA Trust Note). |
| (3) | Advances on sale of receivables and securitizations on book. |
| (4) | At September 30, 2014 includes: negative adjustments for hedge accounting on financial payables for -€73 million (-€76 million at June 30, 2014, -€78 million at December 31, 2013), current financial receivables from jointly-controlled financial services companies of €71 million (€92 million at June 30, 2014, €27 million at December 31, 2013) and accrued net financial charges for an amount of -€580 million (-€519 million at June 30,2014, -€550 million at December 31, 2013). |
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Results by Segment
FIAT CHRYSLER AUTOMOBILES
Revenues and EBIT by segment – 3rd Quarter
| Revenues |
EBIT | |||||||||||||||||||||
| 2014 |
2013(*) | Change | (€ million) |
2014 | 2013(*) | Change | ||||||||||||||||
| 13,134 |
10,965 | 2,169 | NAFTA (mass-market brands) | 549 | 536 | 13 | ||||||||||||||||
| 2,162 |
2,446 | -284 | LATAM (mass-market brands) | 51 | 169 | -118 | ||||||||||||||||
| 1,578 |
1,215 | 363 | APAC (mass-market brands) | 169 | 99 | 70 | ||||||||||||||||
| 4,080 |
3,843 | 237 | EMEA (mass-market brands) | (63 | ) | (116 | ) | 53 | ||||||||||||||
| 1,248 |
922 | 326 | Luxury Brands (Ferrari, Maserati) | 179 | 131 | 48 | ||||||||||||||||
| 2,086 |
1,877 | 209 | Components (Magneti Marelli, Teksid, Comau) | 48 | 37 | 11 | ||||||||||||||||
| 200 |
216 | -16 | Other | (4 | ) | (23 | ) | 19 | ||||||||||||||
| (935) |
(791 | ) | -144 | Eliminations and adjustments | (3 | ) | 29 | -32 | ||||||||||||||
| 23,553 |
20,693 | 2,860 | Total | 926 | 862 | 64 | ||||||||||||||||
| (*) | Adjusted for the retrospective application of IFRS 11. Revenues: Group -€40 million, APAC +€10 million, EMEA -€17 million, Eliminations and Adjustments -€33 million. EBIT: Group +€6 million, APAC +€3 million, EMEA +€3 million. |
FIAT CHRYSLER AUTOMOBILES
Revenues and EBIT by segment – Nine months to September 30,
| Revenues | EBIT | |||||||||||||||||||||||
| 2014 | 2013(*) | Change | (€ million) |
2014 | 2013(*) | Change | ||||||||||||||||||
| 37,124 | 32,474 | 4,650 | NAFTA (mass-market brands) | 1,030 | 1,669 | -639 | ||||||||||||||||||
| 6,315 | 7,753 | -1,438 | LATAM (mass-market brands) | 64 | 520 | -456 | ||||||||||||||||||
| 4,597 | 3,332 | 1,265 | APAC (mass-market brands) | 410 | 284 | 126 | ||||||||||||||||||
| 13,031 | 12,929 | 102 | EMEA (mass-market brands) | (141 | ) | (292 | ) | 151 | ||||||||||||||||
| 3,861 | 2,491 | 1,370 | Luxury Brands (Ferrari, Maserati) | 484 | 312 | 172 | ||||||||||||||||||
| 6,240 | 5,932 | 308 | Components (Magneti Marelli, Teksid, Comau) | 150 | 132 | 18 | ||||||||||||||||||
| 602 | 685 | -83 | Other | (40 | ) | (101 | ) | 61 | ||||||||||||||||
| (2,764) | (2,915 | ) | 151 | Eliminations and adjustments | 200 | (1) | 18 | 182 | ||||||||||||||||
| 69,006 | 62,681 | 6,325 | Total | 2,157 | 2,542 | -385 | ||||||||||||||||||
| (*) | Adjusted for the retrospective application of IFRS 11. Revenues: Group -€134 million, APAC +€42 million, EMEA -€61 million, Eliminations and Adjustments -€115 million. EBIT: Group +€26 million, APAC +€14 million, EMEA +€12 million. |
| (1) | Includes the unusual non-cash and non-taxable gain of €223 million recognized in Q1 2014 resulting from the fair value of the options represented approximately 10% of Chrysler equity interest which was a portion of the 41.5% stake that Fiat acquired from the VEBA Trust on January 21, 2014. |
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NAFTA
| Nine months to September 30 | 3rd Quarter | |||||||||||||||||||||||
| 2014 | 2013 | Change | (€ million) |
2014 | 2013 | Change | ||||||||||||||||||
| 1,825 | 1,587 | 238 | Shipments (000s) |
613 | 505 | 108 | ||||||||||||||||||
| 37,124 | 32,474 | 4,650 | Net revenues |
13,134 | 10,965 | 2,169 | ||||||||||||||||||
| 1,030 | 1,669 | -639 | EBIT (*) |
549 | 536 | 13 | ||||||||||||||||||
| (499) | 70 | (*) Includes unusual items of: |
(5 | ) | 1 | |||||||||||||||||||
Shipments were 613,000 vehicles (+21%) and sales1 totaled 633,000 vehicles (+18%). Market share was 12.3% in the U.S. (up 110 bps) and 14.9% in Canada (up 60 bps).
Revenues were €13.1 billion (+20%) primarily due to volume growth. EBIT was €549 million (€536 million in Q3 2013), with higher volumes, improved pricing and purchasing efficiencies substantially offset by increased incentives on certain vehicles, unfavorable mix, higher industrial costs, mainly related to base material costs for vehicle content enhancements, as well as higher warranty and recall costs. EBIT margin was 4.2% in Q3 2014, compared with 4.9% for the same period in 2013.
LATAM
| Nine months to September 30 | 3rd Quarter | |||||||||||||||||||||||
| 2014 | 2013 | Change | (€ million) |
2014 | 2013 | Change | ||||||||||||||||||
| 610 | 723 | -113 | Shipments (000s) |
202 | 235 | -33 | ||||||||||||||||||
| 6,315 | 7,753 | -1,438 | Net revenues |
2,162 | 2,446 | -284 | ||||||||||||||||||
| 64 | 520 | -456 | EBIT (*) |
51 | 169 | -118 | ||||||||||||||||||
| (105) | (55 | ) | (*) Includes unusual items of: |
(11 | ) | 4 | ||||||||||||||||||
Shipments were 202,000, a decrease of 14% reflecting poor conditions in the principal markets in the region. In Brazil, the Group maintained its leadership with an overall share of 21.4% (+10 bps), with a 3.6 percentage points lead over the nearest competitor. In Argentina, Group market share was 14.1% (+170 bps). For other LATAM countries, the decrease in shipments was mainly attributable to poor trading conditions in Venezuela.
Revenues were €2.2 billion, down 12% primarily due to lower volumes. EBIT decreased from €169 million to €51 million. Excluding unusual items, EBIT decreased by €103 million, reflecting lower volumes, with positive net pricing and mix offsetting higher industrial and other costs, including €14 million in start-up costs for the Pernambuco plant.
| 1 | For US and Canada, “Sales” represents sales to end customers as reported by the Group’s dealer network. |
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APAC
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| Nine months to September 30 | 3rd Quarter | |||||||||||||||||||||||
| 2014 | 2013(1) | Change | (€ million) |
2014 | 2013(1) | Change | ||||||||||||||||||
| 163 | 115 | 48 | Shipments (000s) |
55 | 45 | 10 | ||||||||||||||||||
| 4,597 | 3,332 | 1,265 | Net revenues |
1,578 | 1,215 | 363 | ||||||||||||||||||
| 410 | 284 | 126 | EBIT (*) |
169 | 99 | 70 | ||||||||||||||||||
| — | (1 | ) | (*) Includes unusual items of: |
— | 1 | |||||||||||||||||||
| (1) | Adjusted for retrospective application of IFRS 11. For Q3, Revenues increased by €10 million, EBIT increased by €3 million. For the nine months to September 30, Revenues increased by €42 million and EBIT increased by €14 million. |
Shipments (excluding JVs) totaled 55,000 vehicles (+22%). Group retail sales (including JVs) were up 25% to 66,000 vehicles.
Revenues were €1.6 billion (+30%) mainly driven by higher volumes and better mix. EBIT was €169 million, an increase of €70 million or 71% driven by higher volumes and a better product mix, partially offset by increased sales and marketing spending to support volume expansion in the region.
EMEA
| Nine months to September 30 | 3rd Quarter | |||||||||||||||||||||||
| 2014 | 2013(1) | Change | (€ million) |
2014 | 2013(1) | Change | ||||||||||||||||||
| 763 | 743 | 20 | Shipments (000s) |
218 | 211 | 7 | ||||||||||||||||||
| 13,031 | 12,929 | 102 | Net revenues |
4,080 | 3,843 | 237 | ||||||||||||||||||
| (141) | (292 | ) | 151 | EBIT (*) |
(63 | ) | (116 | ) | 53 | |||||||||||||||
| — | (1 | ) | (*) Includes unusual items of: |
— | 6 | |||||||||||||||||||
| (1) | Adjusted for retrospective application of IFRS 11. For Q3 Revenues decreased by €17 million, EBIT increased by €3 million. For nine months to September 30, Revenues decreased by €61 million, EBIT increased by €12 million. |
Passenger car and light commercial vehicle (LCV) shipments totaled 218,000 units, up 3% over Q3 2013. Passenger car shipments were up 1% to 169,000 and LCVs were up 13% to 49,000. European share (EU28+EFTA) for passenger cars was down 10 bps to 5.5% (27.5% in Italy and 3.2% in other markets). For LCVs, European share2 (EU28+EFTA) was up 30 bps to 10.9% (43.5% in Italy).
Revenues were €4.1 billion (+6%) on the back of higher volumes, as well as better mix driven by LCVs and Jeep brand sales. EBIT loss for Q3 2014 was €63 million, compared with a €116 million loss for the same quarter in 2013. The €53 million improvement in EBIT was primarily attributable to a more favorable product mix – reflecting the success of the Fiat 500 family, new Fiat Ducato and Jeep brand – in addition to increased volumes and industrial efficiencies, which were partially offset by competitive pricing pressures and higher advertising expense related to the launch of the Jeep Renegade.
| 2 | Due to unavailability of market data for Italy since January 2012, the figures reported are an extrapolation and discrepancies with actual data could exist. |
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LUXURY BRANDS
| Nine months to September 30 | 3rd Quarter | |||||||||||||||||||||||
| 2014 | 2013 | Change | (€ million) |
2014 | 2013 | Change | ||||||||||||||||||
| Ferrari | ||||||||||||||||||||||||
| 5,280 | 5,336 | -56 | Shipments (units) (*) | 1,612 | 1,499 | 113 | ||||||||||||||||||
| 2,011 | 1,711 | 300 | Net revenues | 662 | 534 | 128 | ||||||||||||||||||
| 274 | 264 | 10 | EBIT | 89 | 88 | 1 | ||||||||||||||||||
| Maserati | ||||||||||||||||||||||||
| 26,428 | 7,548 | 18,880 | Shipments (units) | 8.896 | 3,953 | 4.943 | ||||||||||||||||||
| 2,039 | 883 | 1,156 | Net revenues | 652 | 444 | 208 | ||||||||||||||||||
| 210 | 48 | 162 | EBIT | 90 | 43 | 47 | ||||||||||||||||||
| LUXURY BRANDS | ||||||||||||||||||||||||
| 31,708 | 12,884 | 18,824 | Shipments (units) | 10,508 | 5,452 | 5,056 | ||||||||||||||||||
| 3,861 | 2,491 | 1,370 | Net revenues (**) | 1,248 | 922 | 326 | ||||||||||||||||||
| 484 | 312 | 172 | EBIT | 179 | 131 | 48 | ||||||||||||||||||
| (*) | Non-type approved vehicles included. |
| (**) | Net of eliminations. |
Ferrari
Revenues were €662 million (+24%), with 1,610 street cars shipped (+8%). EBIT was €89 million, including €15 million in compensation costs related to the resignation of the former chairman. Net of this item, EBIT was up €16 million with improved sales mix driven by the LaFerrari.
Maserati
Maserati shipped 8,896 vehicles (3,953 in Q3 2013) with continuing strong performance for the Quattroporte and Ghibli. Revenues totaled €652 million (€444 million for Q3 2013). EBIT increased to €90 million from €43 million in Q3 2013 on the back of volume growth.
COMPONENTS
| Nine months to September 30 | 3rd Quarter | |||||||||||||||||||||||
| 2014 | 2013 | Change | (€ million) |
2014 | 2013 | Change | ||||||||||||||||||
| Magneti Marelli | ||||||||||||||||||||||||
| 4,770 | 4,455 | 315 | Net revenues | 1,604 | 1,399 | 205 | ||||||||||||||||||
| 124 | 109 | 15 | EBIT | 37 | 28 | 9 | ||||||||||||||||||
| Teksid | ||||||||||||||||||||||||
| 480 | 531 | -51 | Net revenues | 152 | 169 | -17 | ||||||||||||||||||
| (3) | (7 | ) | 4 | EBIT | 2 | (2 | ) | 4 | ||||||||||||||||
| Comau | ||||||||||||||||||||||||
| 1,032 | 988 | 44 | Net revenues | 335 | 323 | 12 | ||||||||||||||||||
| 29 | 30 | -1 | EBIT | 9 | 11 | -2 | ||||||||||||||||||
| COMPONENTS | ||||||||||||||||||||||||
| 6,240 | 5,932 | 308 | Net revenues (*) | 2,086 | 1,877 | 209 | ||||||||||||||||||
| 150 | 132 | 18 | EBIT | 48 | 37 | 11 | ||||||||||||||||||
| (*) | Net of eliminations. |
Magneti Marelli
Revenues were €1,604 million, a 15% increase over Q3 2013. Performance was positive in North America and Europe, down in Brazil and in line with Q3 2013 in China. EBIT was €37 million, an increase of €9 million year-over-year (€16 million excluding unusual items), mainly reflecting higher volumes.
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Teksid
Revenues were €152 million, substantially unchanged on a constant scope of operations. Volumes were down 12% for the Cast Iron business unit (on a constant scope of operations) and up 17% for the Aluminum business. EBIT was €2 million, compared with a €2 million loss in Q3 2013.
Comau
Revenues were €335 million with a 4% increase mainly attributable to the Body Welding business. EBIT was €9 million a €2 million decrease from €11 million for Q3 2013. Order intake for Systems totaled €484 million, a 19% increase over the third quarter of 2013 attributable primarily to the Body Welding business.
Brand activity in the quarter
The highlight of the third quarter was the launch of the Jeep Renegade, the first FCA vehicle designed in the U.S. and crafted in Italy for sales to customers in more than 100 countries worldwide. The Renegade marks the Jeep brand’s first entry in the small SUV segment.
Fiat launched a teaser campaign for the latest addition to the 500 family, the 500X, just days prior to the Paris Motor Show, where the vehicle was given its debut presentation. The new Fiat Panda Cross and Fiat Freemont Cross were also presented during the quarter.
At The International Motor Show (the “IAA”) in Hannover, Fiat Professional gave the world premiere presentation of the new Doblò.
In the state of Texas, which is the largest pickup truck and SUV market in the U.S., the Texas Auto Writers Association awarded the 2015 Jeep Grand Cherokee “SUV of Texas” for the 5th consecutive year, the 2015 Jeep Cherokee “Compact SUV of Texas” for the 2nd consecutive year, the Ram 2500 Heavy Duty “Heavy Duty Truck of Texas” for the 2nd consecutive year and the 3.0-liter EcoDiesel (in the Jeep Grand Cherokee and Ram 1500) “Best Powertrain”.
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This document, and in particular the section entitled “2014 Outlook”, contains forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, “intend”, or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on the Group’s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including: the Group’s ability to reach certain minimum vehicle sales volumes; developments in global financial markets and general economic and other conditions; changes in demand for automotive products, which is highly cyclical; the Group’s ability to enrich the product portfolio and offer innovative products; the high level of competition in the automotive industry; the Group’s ability to expand certain of the Group’s brands internationally; changes in the Group’s credit ratings; the Group’s ability to realize anticipated benefits from any acquisitions, joint venture arrangements and other strategic alliances; the Group’s ability to integrate its operations; potential shortfalls in the Group’s defined benefit pension plans; the Group’s ability to provide or arrange for adequate access to financing for the Group’s dealers and retail customers; the Group’s ability to access funding to execute the Group’s business plan and improve the Group’s business, financial condition and results of operations; various types of claims, lawsuits and other contingent obligations against the Group; material operating expenditures in relation to compliance with environmental, health and safety regulation; developments in labor and industrial relations and developments in applicable labor laws; increases in costs, disruptions of supply or shortages of raw materials; exchange rate fluctuations, interest rate changes, credit risk and other market risks; political and civil unrest; earthquakes or other natural disasters and other risks and uncertainties.
Any forward-looking statements contained in this document speak only as of the date of this document and the Company does not undertake any obligation to update or revise publicly forward-looking statements. Further information concerning the Group and its businesses, including factors that could materially affect the Company’s financial results, is included in the Company’s reports and filings with the U.S. Securities and Exchange Commission, the AFM and CONSOB.
On October 29, at 2 p.m. GMT, management will hold a conference call to present the 2014 third quarter results to financial analysts and institutional investors. The call can be followed live and a recording will be available later on the Group website (http://www.fcagroup.com/en-us/pages/home.aspx). The supporting document will be made available on the website prior to the call.
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Interim Consolidated Income Statement
Unaudited
| For the three months ended September 30, |
For the nine months ended September 30, |
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| (€ million) |
2014 | 2013(*) | 2014 | 2013(*) | ||||||||||||
| Net revenues |
23,553 | 20,693 | 69,006 | 62,681 | ||||||||||||
| Cost of sales |
20,356 | 17,747 | 59,694 | 53,706 | ||||||||||||
| Selling, general and administrative costs |
1,717 | 1,580 | 5,151 | 4,842 | ||||||||||||
| Research and development costs |
598 | 556 | 1,825 | 1,615 | ||||||||||||
| Other income/(expenses) |
44 | 24 | 133 | (13 | ) | |||||||||||
| Result from investments: |
36 | 29 | 105 | 73 | ||||||||||||
| Share of the profit and (loss) of equity method investees |
36 | 29 | 88 | 57 | ||||||||||||
| Other income and (expenses) from investments |
— | — | 17 | 16 | ||||||||||||
| Gains on the disposal of investments |
3 | 6 | 11 | 8 | ||||||||||||
| Restructuring costs/(income) |
15 | 14 | 23 | 9 | ||||||||||||
| Other unusual income/(expenses) |
(24 | ) | 7 | (405 | ) | (35 | ) | |||||||||
| EBIT |
926 | 862 | 2,157 | 2,542 | ||||||||||||
| Net financial expenses |
(511 | ) | (493 | ) | (1,510 | ) | (1,453 | ) | ||||||||
| Profit before taxes |
415 | 369 | 647 | 1,089 | ||||||||||||
| Tax expenses |
227 | 180 | 435 | 434 | ||||||||||||
| Profit from continuing operations |
188 | 189 | 212 | 655 | ||||||||||||
| Net profit |
188 | 189 | 212 | 655 | ||||||||||||
| Net profit/(loss) for the period attributable to: |
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| Owners of the parent |
174 | (15 | ) | 160 | 44 | |||||||||||
| Non-controlling interests |
14 | 204 | 52 | 611 | ||||||||||||
| (*) | Adjusted for the retrospective application of IFRS 11. |
Translation of financial statements denominated in a currency other than the Euros
The principal exchange rates used to translate other currencies into Euro were as follows:
| For the nine months ended September 30, 2014 |
At September 30, 2014 |
At December 31, 2013 | For the nine months ended September 30, 2013 |
At September 30, 2013 |
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| U.S. Dollar (“U.S.$”) |
1.355 | 1.258 | 1.379 | 1.317 | 1.351 | |||||||||||||||
| Brazilian Real |
3.103 | 3.082 | 3.258 | 2.792 | 3.041 | |||||||||||||||
| Chinese Renminbi |
8.356 | 7.726 | 8.349 | 8.122 | 8.265 | |||||||||||||||
| Serbian Dinar |
116.240 | 118.851 | 114.642 | 112.690 | 114.604 | |||||||||||||||
| Polish Zloty |
4.175 | 4.178 | 4.154 | 4.201 | 4.229 | |||||||||||||||
| Argentine Peso |
10.818 | 10.668 | 8.988 | 6.950 | 7.819 | |||||||||||||||
| Pound Sterling |
0.812 | 0.777 | 0.834 | 0.852 | 0.836 | |||||||||||||||
| Swiss Franc |
1.218 | 1.206 | 1.228 | 1.232 | 1.223 | |||||||||||||||
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Interim Consolidated statement of financial position
Unaudited
| (€ million) |
At September 30, 2014 |
At December 31, 2013(*) |
||||||
| Assets |
||||||||
| Intangible assets |
21,813 | 19,514 | ||||||
| Goodwill and intangible assets with indefinite useful lives |
13,550 | 12,440 | ||||||
| Other intangible assets |
8,263 | 7,074 | ||||||
| Property, plant and equipment |
25,321 | 23,233 | ||||||
| Investments and other financial assets: |
2,079 | 2,052 | ||||||
| Investments accounted for using the equity method |
1,461 | 1,388 | ||||||
| Other investments and financial assets |
618 | 664 | ||||||
| Defined benefit plan assets |
72 | 105 | ||||||
| Deferred tax assets |
3,365 | 2,903 | ||||||
| Total Non-current assets |
52,650 | 47,807 | ||||||
| Inventories |
12,978 | 10,278 | ||||||
| Trade receivables |
3,030 | 2,544 | ||||||
| Receivables from financing activities |
3,689 | 3,671 | ||||||
| Current tax receivables |
341 | 312 | ||||||
| Other current assets |
2,683 | 2,323 | ||||||
| Current financial assets: |
604 | 815 | ||||||
| Current investments |
36 | 35 | ||||||
| Current securities |
213 | 247 | ||||||
| Other financial assets |
355 | 533 | ||||||
| Cash and cash equivalents |
18,395 | 19,455 | ||||||
| Total Current assets |
41,720 | 39,398 | ||||||
| Assets held for sale |
26 | 9 | ||||||
| Total Assets |
94,396 | 87,214 | ||||||
| Equity and liabilities |
||||||||
| Equity: |
10,713 | 12,584 | ||||||
| Equity attributable to owners of the parent |
10,413 | 8,326 | ||||||
| Non-controlling interest |
300 | 4,258 | ||||||
| Provisions: |
19,212 | 17,427 | ||||||
| Employee benefits |
8,866 | 8,326 | ||||||
| Other provisions |
10,346 | 9,101 | ||||||
| Deferred tax liabilities |
202 | 278 | ||||||
| Debt |
32,933 | 30,283 | ||||||
| Other financial liabilities |
551 | 137 | ||||||
| Other current liabilities |
11,611 | 8,963 | ||||||
| Current tax payables |
328 | 314 | ||||||
| Trade payables |
18,846 | 17,207 | ||||||
| Liabilities held for sale |
— | 21 | ||||||
| Total Equity and liabilities |
94,396 | 87,214 | ||||||
| (*) | Adjusted for the retrospective application of IFRS 11. |
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Interim Consolidated Statement of Cash Flows
Unaudited
| For the nine months ended September 30, |
||||||||
| (€ million) |
2014 | 2013(*) | ||||||
| Cash and cash equivalents at beginning of the period |
19,455 | 17,666 | ||||||
| Cash flows from/(used in) operating activities: |
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| Net profit for the period |
212 | 655 | ||||||
| Amortization and depreciation |
3,599 | 3,394 | ||||||
| Net (gains)/losses on disposal of tangible and intangible assets |
(1 | ) | 18 | |||||
| Net (gains)/losses on disposal of investments |
(9 | ) | (8 | ) | ||||
| Other non-cash items |
197 | 33 | ||||||
| Dividends received |
60 | 93 | ||||||
| Change in provisions |
689 | (224 | ) | |||||
| Change in deferred taxes |
(51 | ) | (59 | ) | ||||
| Change in items due to buy-back commitments and GDP vehicles |
280 | 125 | ||||||
| Change in working capital |
(726 | ) | (205 | ) | ||||
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| Total |
4,250 | 3,822 | ||||||
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| Cash flows from/(used in) investing activities: |
||||||||
| Investments in property, plant and equipment and intangible assets |
(5,350 | ) | (5,284 | ) | ||||
| Capital increases in joint ventures, associates and unconsolidated subsidiaries |
(16 | ) | (126 | ) | ||||
| Proceeds from the sale of tangible and intangible assets |
32 | 33 | ||||||
| Proceeds from disposal of other interests |
11 | 2 | ||||||
| Net change in receivables from financing activities |
128 | (402 | ) | |||||
| Change in current securities |
41 | (6 | ) | |||||
| Other changes |
35 | 24 | ||||||
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| Total |
(5,119 | ) | (5,759 | ) | ||||
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| Cash flows from/(used in) financing activities: |
||||||||
| Issuance of bonds |
4,588 | 2,500 | ||||||
| Repayment of bonds |
(2,150 | ) | (1,000 | ) | ||||
| Issuance of other medium-term borrowings |
3,950 | 1,519 | ||||||
| Repayment of other medium-term borrowings |
(5,241 | ) | (1,460 | ) | ||||
| Net change in other financial payables and other financial assets/liabilities |
509 | 81 | ||||||
| Increase in share capital |
3 | 4 | ||||||
| Dividends paid |
— | (1 | ) | |||||
| Distribution for certain tax obligation of the VEBA |
(45 | ) | — | |||||
| Acquisition of non-controlling interests |
(2,691 | ) | — | |||||
| Distribution for tax withholding obligations on behalf of non-controlling interests |
— | (5 | ) | |||||
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| Total |
(1,077 | ) | 1,638 | |||||
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| Translation exchange differences |
886 | (525 | ) | |||||
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| Total change in cash and cash equivalents |
(1,060 | ) | (824 | ) | ||||
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| Cash and cash equivalents at end of the period |
18,395 | 16,842 | ||||||
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| (*) | Adjusted for the retrospective application of IFRS 11. Cash and cash equivalents: +€9 million at beginning of the period, +€15 million at end of the period. |