FCA closed 2015 with a strong performance well in excess of full-year guidance. Including Ferrari, Net revenues were €113.2 billion, up 18%, Adjusted EBIT was €5.3 billion, up 40% and Adjusted net profit was €2.0 billion, up 91%. The spinoff of Ferrari allowed the Group to begin 2016 operations with Net industrial debt of €5.0 billion.
- Worldwide shipments were 4.6 million units, in line with 2014. Jeep’s strong global performance continued with record worldwide shipments of 1.3 million up 21%.
- Adjusted EBIT1 was €5.3 billion, up 40% from €3.8 billion in 2014, with NAFTA more than doubling and EMEA returning to profitability one year ahead of plan. All segments were profitable in Q4 2015.
- Adjusted net profit2 was €2.0 billion, up 91% compared to €1.1 billion in 2014. Net profit in 2015 was €377 million, which includes Q3 charges for the change in estimate to reflect current regulatory and recall environment, as well as Q4 charges for planned realignment of NAFTA capacity to reflect market trends.
- Net industrial debt was €6.0 billion at December 31, 2015 and liquidity remained strong at €25.2 billion. After giving effect to the January 3, 2016 Ferrari spin-off, Net industrial debt stood at €5.0 billion and liquidity reduced marginally to €24.6 billion.
Net revenues¹,² for the year were €113.2 billion, an increase of €17.1 billion, or 18% (+6% at constant exchange rates, or CER) from €96.1 billion for the prior year. Higher Net revenues in NAFTA (+33%; +13% CER), EMEA (+13%; +11% CER) and Components (+13%; +11% CER), were partially offset by decreases in LATAM (-25%; -18% CER), APAC (-22%; -31% CER) and Maserati (-13%; -22% CER).
Adjusted EBIT¹,² was €5,267 million, an increase of €1,501 million (+40%; +19% CER) from prior year. The increase in Adjusted EBIT was primarily attributable to increases in NAFTA (+€2,271 million), EMEA (+€254 million) and Components (+€110 million), partially offset by decreases in APAC (-€489 million), LATAM (-€376 million) and Maserati (-€170 million). Adjusted EBIT excludes a total of €2,203 million pre-tax impact of unusual items, of which €1,631 million relates to NAFTA, €219 million to LATAM, €205 million to APAC and €47 million to EMEA.
Net financial expense¹ totaled €2,377 million, €330 million higher than in 2014, primarily reflecting an increase in debt levels and interest rates in Brazil, the call premiums, net of the remaining unamortized debt premiums, of €168 million for the prepayment of the FCA US senior secured notes due in 2019 and 2021 and unfavorable foreign currency translation, partially offset by interest cost savings resulting from the refinancing transactions and reduction in overall gross debt in 2015.
Tax expense¹ totaled €310 million, compared to €544 million in 2014, mainly due to decreased profit before taxes.
Net profit for the year was €377 million, compared to €632 million for 2014 and profit attributable to owners of the parent was €334 million compared to €568 million for 2014. Adjusted net profit for the year was €2,026 million, compared to €1,060 million for 2014.
Net industrial debt¹,² at December 31, 2015 was €6.0 billion, a decrease from €7.7 billion at December 31, 2014. The improvement reflects positive cash flows from operating activities of €9.7 billion and €0.7 billion of positive foreign exchange translation effects primarily related to the devaluation of the Brazilian Real, which were partially offset by capital expenditures of €9.2 billion. The decrease also reflects €0.9 billion of net cash proceeds from the IPO of 10% of Ferrari and a €0.3 billion cash payment to the non-controlling interest. After giving effect to the January 3, 2016 Ferrari spin-off, Net industrial debt stood at €5.0 billion.
Total available liquidity¹ was €25.2 billion at December 31, 2015, down from €26.2 billion at December 31, 2014. The decrease reflects bond repayments during the year totaling €7.3 billion which included the prepayment of the FCA US secured senior notes due in 2019 and 2021 with an aggregate principal balance of €5.3 billion and the repayment at maturity of two bonds with an aggregate principal balance of €1.9 billion. This decrease was partially offset by the issuance of unsecured senior notes due in 2020 and 2023 with an aggregate principal balance of $3.0 billion (€2.8 billion); net increases of €1.5 billion attributable to changes in bank borrowings, other debt and credit facilities; cash generated from operations net of investing activities of €0.7 billion; transactions related to the IPO of 10% of Ferrari of €0.6 billion and a favorable foreign exchange translation impact of €0.7 billion. Total available liquidity includes the new syndicated revolving credit facility of €2.5 billion entered into in June, which will expand to €5.0 billion following the termination of the ring-fencing of FCA US expected in Q1 2016. After giving effect to the January 3, 2016 Ferrari spin-off, total available liquidity reduced marginally to €24.6 billion.
¹ These results include Ferrari to promote comparability with prior periods and previously provided guidance. However, as a result of the approval of the Ferrari spin-off at the Extraordinary General Meeting of Shareholders on December 3, 2015, Ferrari will be treated as a discontinued operation for the year ended December 31, 2015 financial statements and for all prior periods in accordance with IFRS. In addition, Ferrari assets and liabilities will be classified as held for distribution at December 31, 2015;
² Refer to page 10 for reconciliation of these results to results reflecting Ferrari’s classification as a discontinued operation.
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