Exhibit 99.1 | Press release issued by Fiat Chrysler Automobiles N.V. dated May 3, 2019. |
Date: May 3, 2019 | FIAT CHRYSLER AUTOMOBILES N.V. | ||
By: | /s/ Richard K. Palmer | ||
Name: Richard K. Palmer | |||
Title: Chief Financial Officer |
99.1 | Press release issued by Fiat Chrysler Automobiles N.V. dated May 3, 2019. |
2019 FIRST QUARTER FINANCIAL RESULTS FROM CONTINUING OPERATIONS (all amounts € million and exclude Magneti Marelli unless otherwise stated) | “The market is responding enthusiastically to the roll out of our new products and we continue to execute initiatives that will strengthen the underperforming parts of our business. Based on these factors and our first quarter results being in line with our expectations, we are confident in our 2019 guidance.” - Mike Manley, CEO | |||||||||
IFRS | NON-GAAP(2) | |||||||||
Net revenues | Adjusted EBIT(3)/ Margin | |||||||||
24,481 | (5)% | 1,067 | (29)% | 4.4% | -140 bps | |||||
Net profit | Adjusted net profit(4) | First quarter Adjusted EBIT and margin declined versus the prior year, as anticipated, largely due to the non-repeat of parallel production of the previous generation Jeep Wrangler alongside the new model and transitioning to our new commercial strategy in EMEA. The effect of reduced volumes globally were partially offset by continuing growth in Ram volumes, improved net pricing, particularly in North America, along with better channel and product mix in several markets. An important highlight this quarter is the strong performance of the Ram 1500, which claimed the number two position in the profitable U.S. light-duty segment for the quarter with a market share of 23.3%, an increase of 4.5 percentage points over last year. We took several steps to strengthen our business in the first quarter. These included the successful negotiation of a labor agreement in Italy and continued implementation of cost-containment actions in all regions. In addition, we announced an extension to our partnership with Groupe PSA whereby FCA will increase production capacity in the Sevel joint operation, enabling our future growth in the high margin LCV segment in Europe. Other steps taken include the addition of new senior leaders to drive improved performance; an aggressive focus on Maserati distribution network and marketing; and, progress towards a restructure of our JV in China. Further, the launches of the all-new Ram Heavy-Duty and Jeep Gladiator are on track and generating enthusiastic responses from the market. These products will contribute to volume and margin expansion in North America, particularly in the second half of the year. At the Geneva International Motor Show, the Group unveiled two Jeep PHEV models slated initially for the EMEA market beginning early 2020, as well as a new Alfa Romeo compact SUV concept and a high-tech, modular and electrified Fiat concept. In the U.S., we announced plans for a major industrial investment that will support the introduction of two new Jeep-branded “white-space” SUVs, both with electric powered variants. Similarly, the confirmation of the previously announced manufacturing investment in Italy will accelerate the introduction of key PHEV and BEV products in the EMEA markets. Finally, the sale of Magneti Marelli was completed on May 2, 2019, resulting in cash proceeds of €5.8 billion. The Board of Directors approved an extraordinary cash distribution of €1.30 per share, or approximately €2.0 billion, to be paid on May 30, 2019 to shareholders of record on May 21, 2019, with an ex-dividend date of May 20, 2019. | ||||||||
508 | (47)% | 570 | (41)% | |||||||
Diluted earnings per share € | Adjusted diluted EPS(5) € | |||||||||
0.32 | (48)% | 0.36 | (42)% | |||||||
Cash flows from operating activities | Industrial free cash flows(6) | |||||||||
1,070 | (52)% | (270 | ) | (127)% | ||||||
• Worldwide combined shipments(1) of 1,037 thousand units, down 14%, primarily due to non-repeat of overlapping all-new and prior generation Jeep Wrangler production and planned realignment of commercial strategies in Europe • Adjusted EBIT decreased 29%, primarily from lower volumes partially offset by positive net pricing in North America• Industrial free cash flows from continuing operations of €(0.3) billion; outflows contained despite lower earnings and working capital seasonality | ||||||||||
North America | |||||||
Q1 2019 | vs Q1 2018 | • Shipments down 14% primarily from lower Jeep volumes due to non-repeat of overlapping Jeep Wrangler models, as well as lower Chrysler and Dodge volumes, partially offset by increased Ram volumes• Net revenues down slightly, with lower volumes substantially offset by favorable foreign exchange translation effects and positive pricing• Adjusted EBIT down primarily from lower shipments and increased compliance costs, partially offset by positive net pricing, as well as lower launch and advertising costs | |||||
Shipments (000s) | 556 | (90 | ) | ||||
Net revenues (€ million) | 16,057 | (356 | ) | ||||
Adjusted EBIT (€ million) | 1,044 | (172 | ) | ||||
Adjusted EBIT margin | 6.5 | % | -90 bps |
APAC | |||||||
Q1 2019 | vs Q1 2018 | • Combined shipments down 30%, primarily in China• Consolidated shipments down 11%, mainly from decreased India and Australia volumes• Net revenues slightly down, with favorable mix and positive foreign exchange effects more than offset by lower volumes and negative pricing• Adjusted EBIT decrease due to lower volumes, price and lower results from China JV, partially offset by improved mix and lower industrial costs | |||||
Combined shipments(1) (000s) | 39 | (17 | ) | ||||
Consolidated shipments(1) (000s) | 17 | (2 | ) | ||||
Net revenues (€ million) | 592 | (27 | ) | ||||
Adjusted EBIT (€ million) | (9 | ) | (19 | ) | |||
Adjusted EBIT margin | (1.5 | )% | -310 bps |
EMEA | |||||||
Q1 2019 | vs Q1 2018 | • Combined and consolidated shipments both down 12%, primarily due to planned optimization of sales channel mix, partially offset by increased Jeep volumes• Net revenues down 10%, due to lower volumes partially offset by favorable mix• Adjusted EBIT down, with lower volumes, negative net pricing and increased industrial costs reflecting negative foreign exchange effects and increased compliance costs | |||||
Combined shipments(1) (000s) | 317 | (44 | ) | ||||
Consolidated shipments(1) (000s) | 302 | (43 | ) | ||||
Net revenues (€ million) | 5,070 | (570 | ) | ||||
Adjusted EBIT (€ million) | (19 | ) | (201 | ) | |||
Adjusted EBIT margin | (0.4 | )% | -360 bps |
LATAM | |||||||
Q1 2019 | vs Q1 2018 | • Shipments down 9%, mainly due to Argentina market decline, partially offset by increased volumes in Brazil, where the Group increased market share by 230 bps to 18.6%• Net revenues substantially flat, with positive net pricing largely driven by one-off recognition of credits related to indirect taxes, offset by lower volumes and negative foreign exchange effects• Adjusted EBIT up 42%, with positive net pricing partially offset by decreased volumes, negative foreign exchange effects and lower export tax benefits | |||||
Shipments (000s) | 120 | (12 | ) | ||||
Net revenues (€ million) | 1,932 | +42 | |||||
Adjusted EBIT (€ million) | 105 | +31 | |||||
Adjusted EBIT margin | 5.4 | % | +150 | bps |
MASERATI | |||||||
Q1 2019 | vs Q1 2018 | • Shipments down 41%, partially due to planned inventory management actions• Net revenues down 38%, primarily due to lower volumes partially offset by positive foreign currency effects• Adjusted EBIT down primarily due to lower volumes | |||||
Shipments (000s) | 5.5 | (3.9 | ) | ||||
Net revenues (€ million) | 471 | (283 | ) | ||||
Adjusted EBIT (€ million) | 11 | (75 | ) | ||||
Adjusted EBIT margin | 2.3 | % | -910 bps |
Q1 2019 (€ million) | NORTH AMERICA | APAC | EMEA | LATAM | MASERATI | OTHER(*) | FCA | |||||||||||||||||||||
Revenues | € | 16,057 | € | 592 | € | 5,070 | € | 1,932 | € | 471 | € | 359 | € | 24,481 | ||||||||||||||
Revenues from transactions with other segments | (4 | ) | (11 | ) | (18 | ) | (14 | ) | (3 | ) | 50 | — | ||||||||||||||||
Revenues from external customers | € | 16,053 | € | 581 | € | 5,052 | € | 1,918 | € | 468 | € | 409 | € | 24,481 | ||||||||||||||
Net profit from continuing operations | € | 508 | ||||||||||||||||||||||||||
Tax expense | € | 212 | ||||||||||||||||||||||||||
Net financial expenses | € | 244 | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
Restructuring costs, net of reversals(A) | 35 | — | 37 | 128 | — | 4 | € | 204 | ||||||||||||||||||||
Impairment expense and supplier obligations(B) | 36 | — | 6 | — | — | — | € | 42 | ||||||||||||||||||||
Brazilian indirect tax – reversal of liability/recognition of credits(C) | — | — | — | (164 | ) | — | — | € | (164 | ) | ||||||||||||||||||
Other | 14 | — | 1 | 1 | (1 | ) | 6 | € | 21 | |||||||||||||||||||
Total adjustments | 85 | — | 44 | (35 | ) | (1 | ) | 10 | € | 103 | ||||||||||||||||||
Adjusted EBIT(3) | € | 1,044 | € | (9 | ) | € | (19 | ) | € | 105 | € | 11 | € | (65 | ) | € | 1,067 |
A. | Restructuring costs primarily related to LATAM, EMEA and North America |
B. | Impairment expense primarily related to North America |
C. | Credits recognized related to indirect taxes in Brazil |
Q1 2018 (€ million) | NORTH AMERICA | APAC | EMEA | LATAM | MASERATI | OTHER(*) | FCA | |||||||||||||||||||||
Revenues | € | 16,413 | € | 619 | € | 5,640 | € | 1,890 | € | 754 | € | 417 | € | 25,733 | ||||||||||||||
Revenues from transactions with other segments | (9 | ) | (12 | ) | (20 | ) | (3 | ) | (10 | ) | 54 | — | ||||||||||||||||
Revenues from external customers | € | 16,404 | € | 607 | € | 5,620 | € | 1,887 | € | 744 | € | 471 | € | 25,733 | ||||||||||||||
Net profit from continuing operations | € | 951 | ||||||||||||||||||||||||||
Tax expense | € | 214 | ||||||||||||||||||||||||||
Net financial expenses | € | 287 | ||||||||||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||
U.S. special bonus payment | 109 | — | — | — | — | 2 | € | 111 | ||||||||||||||||||||
Restructuring costs | — | — | — | — | — | 1 | € | 1 | ||||||||||||||||||||
Recovery of costs for recall - contested with supplier | (63 | ) | — | — | — | — | — | € | (63 | ) | ||||||||||||||||||
Total adjustments | 46 | — | — | — | — | 3 | € | 49 | ||||||||||||||||||||
Adjusted EBIT(3) | € | 1,216 | € | 10 | € | 182 | € | 74 | € | 86 | € | (67 | ) | € | 1,501 |
Net profit to Adjusted net profit | ||||
(€ million) | Q1 2019 | Q1 2018 | ||
Net profit (including Magneti Marelli) | 619 | 1,021 | ||
Less: Net profit - discontinued operations | 111 | 70 | ||
Net profit from continuing operations | 508 | 951 | ||
Adjustments (as above) | 103 | 49 | ||
Tax impact on adjustments(D) | (41 | ) | (37 | ) |
Total adjustments, net of taxes | 62 | 12 | ||
Adjusted net profit(4) | 570 | 963 |
D. | Reflects tax impact on adjustments excluded from Adjusted EBIT noted above |
Diluted EPS to Adjusted diluted EPS | ||||
Q1 2019 | Q1 2018 | |||
Diluted earnings per share from continuing operations ("Diluted EPS") (€/share) | 0.32 | 0.61 | ||
Impact of adjustments, net of taxes, on Diluted EPS (€/share) | 0.04 | 0.01 | ||
Adjusted diluted EPS (€/share)(5) | 0.36 | 0.62 | ||
Weighted average number of shares outstanding for Diluted EPS (thousand) | 1,569,868 | 1,566,402 |
Cash flows from operating activities to Industrial free cash flows | ||||
(€ million) | Q1 2019 | Q1 2018 | ||
Cash flows from operating activities | 699 | 2,348 | ||
Less: Cash flows from operating activities - discontinued operations | (371 | ) | 135 | |
Cash flows from operating activities - continuing operations | 1,070 | 2,213 | ||
Less: Operating activities not attributable to industrial activities | 29 | 16 | ||
Less: Capital expenditures for industrial activities | 1,376 | 1,254 | ||
Add: Net intercompany payments between continuing operations and discontinued operations | 65 | 67 | ||
Add: Discretionary pension contribution, net of tax | — | — | ||
Industrial free cash flows(6) | (270 | ) | 1,010 |