31.07.2012 FIAT GROUP LOSSES CONTINUE THROUGH SECOND QUARTER OF THE YEAR

FIAT GROUP Q2

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.
 

Support Italiaspeed

 

© 2012 Interfuture Media/Italiaspeed