There was
little good news for Fiat Group as it announced its
second quarter results today, posting a 246 million euro
Q2 loss (1,380 million euro profit Q2 2011) and a 519
million H1 loss (1,417 profit H1 2011) although debt
contracted slightly. However, once again, it was
Chrysler Group that rode to the rescue in terms of
profits.Fiat Group
revenues were €21.5 billion for the quarter. Excluding
Chrysler, revenues totaled €9.2 billion, a 7.5% decrease
over Q2 2011 mainly reflecting volume declines in
Europe, where difficult trading conditions continued for
both passenger cars and light commercial vehicles,
particularly in Italy, as a result of the economic
climate. Luxury and Performance brands increased
revenues by 8.7% to €0.8 billion, driven by growth in
Asia and North America. Components were down 4.9% to
€2.0 billion, mainly due to the weakness of the European
car industry.
Trading profit for Q2 2012 was
€1.0 billion. The NAFTA region reported trading profit
of €717 million, LATAM €238 million and APAC €64
million, while EMEA recorded a loss of €138 million.
Luxury and performance brands and the components
businesses contributed €104 million and €47 million,
respectively. Trading profit for Fiat excluding Chrysler
was €144 million, compared to €375 million in Q2 2011,
reflecting lower volumes in Europe and, to a lesser
extent, Latin America, which were only partially
compensated for by industrial efficiencies, cost
containment actions and further realization of group
synergies.
EBIT was €995 million (€102
million excluding Chrysler). For mass-market brands by
region on a pro-forma basis EBIT was as follows: NAFTA
increased by 80% to €744 million, driven by strong
volume growth; LATAM was €238 million, down from €352
million in Q2 2011, due to lower volumes, price pressure
and currency translation impacts; APAC more than tripled
to €60 million, with improvements in both volumes and
margins. EMEA reported a €184 million loss, down from
€406 million a year earlier. This year includes €91
million in unusuals represented by the write-down of the
investment in the SevelNord JV following the agreement
with PSA whereas Q2 2011 included €372 million of
unusuals due to product portfolio rationalization
following the acquisition of control of Chrysler.
Excluding unusuals, the loss was €93 million in Q2 2012
compared to €34 million in Q2 2011. Net financial
expense totaled €463 million. Excluding Chrysler, net
financial expense was €256 million, compared to €160
million in Q2 2011, reflecting higher debt levels (with
a €9 million loss from the mark-to-market value of the
Fiat stock option-related equity swaps, compared to zero
in Q2 2011).
Profit before taxes was €532
million. Excluding Chrysler, there was a loss of €154
million, compared to a profit of €1,504 million in Q2
2011. Net of unusuals, the loss was €60 million,
compared to a profit of €223 million in Q2 2011; the
€283 million difference reflects a €187 million
reduction in EBIT ex-unusuals and a €96 million increase
in net financial expense.
Income taxes totaled €174
million. Excluding Chrysler, income taxes were €92
million and related primarily to the taxable income of
companies operating outside Italy and employment-related
taxes in Italy. Net profit was €358 million for the
quarter (€103 million after minorities). Excluding
Chrysler, there was a €246 million loss as compared to a
€1,380 million profit for Q2 2011; excluding unusual
charges, loss was €152 million in Q2 2012 compared to
€76 million profit in Q2 2011.
Net industrial debt at 30 June
2012 was €5.4 billion, a reduction of more than €0.3
billion for the quarter. In Q2, Chrysler generated €0.6
billion in cash, after investing approximately €1
billion in capital expenditure. Excluding Chrysler, net
industrial debt was €4.1 billion, with the €0.2 billion
increase equally attributable to cash absorbed by
operations, including €0.7 billion capex, and non-cash
items. Capital expenditure for the Group totaled €1.7
billion.
Total available liquidity
inclusive of undrawn committed credit lines (€3.0
billion, unchanged over end Q1 net of currency
translation impacts), improved to €22.7 billion (€21.4
billion at end Q1), of which €12.1 billion related to
Fiat excluding Chrysler and €10.6 billion to Chrysler.
At the beginning of July, a €600 million bond was issued
under the GMTN Program, completing full coverage of bond
maturities for 2012 and one-third for 2013.
First Half
Group revenues were €41.7
billion for the period. Excluding Chrysler, revenues
totaled €17.9 billion, a 6.6% decrease over H1 2011
mainly reflecting volume declines in Europe. Luxury and
Performance brands increased revenues by 10% to €1.4
billion, driven by growth in Asia and North America.
Components were down 1.6% to €4.0 billion.
Trading profit for H1 2012 was
€1,876 million. Trading profit for Fiat excluding
Chrysler was €138 million, compared to €626 million in
H1 2011. For Luxury and Performance brands, trading
profit increased 15.1% to €175 million, while Components
reported a 19.4% decrease to €83 million.
EBIT was €1,890 million.
Excluding Chrysler, EBIT was €114 million. For
mass-market brands by region on a pro-forma basis: NAFTA
EBIT increased by 80% to €1,425 million, driven by
strong volume growth; for LATAM, EBIT was €473 million,
down from €658 million in H1 2011; APAC nearly tripled
to €145 million, with both volume and margin
improvements. EMEA reported a €354 million loss, which
includes €90 million of unusuals due to the write-down
of the Sevel Nord JV, compared to a loss of €472 million
in H1 2011 which included unusuals of €373 million due
to the product portfolio rationalization following the
acquisition of the control of Chrysler.
Excluding unusuals, the loss
was €264 million in H1 2012 compared to €99 million in
H1 2011. Net financial expense totaled €838 million.
Excluding Chrysler, net financial expense was €422
million, compared to €298 million, reflecting higher
debt levels with a marginal positive impact from the
mark-to-market of the Fiat stock option-related equity
swaps.
Profit before taxes was €1,052
million. Excluding Chrysler, there was a €308 million
loss compared to €1,657 million profit in H1 2011. Net
of unusuals, the loss was €214 million in H1 2012 as
compared to a profit of €376 million; the €590 million
reduction over H1 2011 reflects a €466 million decrease
in EBIT and higher net financial expense.
Income taxes totaled €315
million. Excluding Chrysler, income taxes were €211
million and related primarily to the taxable income of
companies operating outside Italy and employment-related
taxes in Italy. Net profit was €737 million for the
first half (€207 million after minorities). Excluding
Chrysler, there was a €519 million loss as compared to a
€1,417 million profit for H1 2011; excluding unusuals,
the loss was €425 million in H1 2012 compared to a €113
million profit in H1 2011.
Net industrial debt at 30 June
2012 was €5.4 billion, compared to €5.5 billion at
year-end 2011. Chrysler improved net industrial debt by
€1.7 billion, more than offsetting absorption for the
rest of the Group of €1.6 billion (of which €1.4 billion
in Q1). Total capital expenditure for the Group was €3.2
billion, of which €1.3 billion related to Fiat excluding
Chrysler, in line with H1 2011.