FCA reports record full year results, including Magneti Marelli: Adjusted EBIT at €7.3 billion, with NAFTA margin up 70 bps to 8.6%; Adjusted Net Profit up 34% to €5.0 billion; Net Profit up 3% to €3.6 billion. Net industrial cash improved to €1.9 billion.
The following Group results(1) include Magneti Marelli for comparability with previously provided guidance
Group results - excluding Magneti Marelli(5)
As a result of the announced sale of Magneti Marelli and, in accordance with IFRS, Magneti Marelli will be presented as a discontinued operation in the financial statements for the year ended December 31, 2018, and its results will be presented net of tax in a separate, single line item after Net profit from continuing operations, with the comparative amounts restated. The remaining Components activities are no longer considered a separate reportable segment and are included within "Other activities".
(A) | Costs related to final settlements reached on civil, environmental and consumer claims related to U.S. diesel emissions matters | |
(B) | Impairment expense of €297 million and supplier obligations of €56 million, primarily in EMEA, resulting from changes in product plans in connection with the 2018 - 2022 Business Plan | |
(C) | Impairment of inventory in connection with acceleration of new emissions standards in China and slower than expected sales | |
(D) | Accrual in relation to costs for recall campaigns related to Takata airbag inflators, net of recovery | |
(E) | Special bonus payment of $2,000 to approximately 60,000 employees in NAFTA as a result of the U.S. Tax Cuts and Jobs Act | |
(F) | Restructuring costs primarily consisting of €123 million in EMEA, partially offset by reversal of €28 million of previously recorded restructuring costs in LATAM | |
(G) | Charges arising on settlement of a portion of a supplemental retirement plan and an annuity buyout in NAFTA | |
(H) | Costs in relation to the Port of Savona (Italy) flood and fire | |
(I) | Recovery of amounts accrued in 2016 in relation to costs for recall contested with a supplier | |
(J) | Reduction of costs in relation to the NAFTA capacity realignment which were accrued in 2015 | |
(K) | Credits recognized related to indirect taxes in Brazil |
NOTES
SAFE HARBOR STATEMENT
This document, and in particular the section entitled "2019 Guidance", contains forward-looking statements. In particular, these forward-looking statements include statements regarding future financial performance and the Company's expectations as to the achievement of certain targeted metrics, including net cash/(debt) and net industrial cash/(debt), revenues, industrial free cash flows, vehicle shipments, capital investments, research and development costs and other expenses at any future date or for any future period are 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", or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on the Group's current state of knowledge, future expectations and projections about future events and are, by their nature, 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 forward-looking statements as a result of a variety of factors, including: the Group's ability to launch products successfully and to maintain vehicle shipment volumes; changes in the global financial markets, general economic environment and changes in demand for automotive products, which is subject to cyclicality; changes in local economic and political conditions, changes in trade policy and the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the enactment of tax reforms or other changes in tax laws and regulations; the Group's ability to expand certain of the Group's brands globally; the Group's ability to offer innovative, attractive products; the Group's ability to develop, manufacture and sell vehicles with advanced features including enhanced electrification, connectivity and autonomous driving characteristics; various types of claims, lawsuits, governmental investigations and other contingencies affecting the Group, including product liability and warranty claims and environmental claims, investigations and lawsuits; material operating expenditures in relation to compliance with environmental, health and safety regulations; the intense level of competition in the automotive industry, which may increase due to consolidation; exposure to shortfalls in the funding of the Group's defined benefit pension plans; the Group's ability to provide or arrange for access to adequate financing for the Group's dealers and retail customers and associated risks related to the establishment and operations of financial services companies, including capital required to be deployed to financial services; 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; a significant malfunction, disruption or security breach compromising the Group's information technology systems or the electronic control systems contained in the Group's vehicles; the Group's ability to realize anticipated benefits from joint venture arrangements; the Group's ability to successfully implement and execute strategic initiatives and transactions, including the Group's plans to separate certain businesses; disruptions arising from political, social and economic instability; risks associated with our relationships with employees, dealers and suppliers; increases in costs, disruptions of supply or shortages of raw materials; developments in labor and industrial relations and developments in applicable labor laws; exchange rate fluctuations, interest rate changes, credit risk and other market risks; political and civil unrest; earthquakes or other 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 disclaims 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 February 7th, 2019, at 1 p.m. GMT, management will hold a conference call to present the 2018 full year and fourth 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 Group website prior to the call.
London, February 7th, 2019