FCA said it closed 2015 with a strong performance well in excess of full-year guidance. Including Ferrari, net revenues were EUR113.2bn, up 18%, Adjusted EBIT was EUR5.3bn, up 40% and adjusted net profit was EUR2.0bn, up 91%.
Worldwide shipments were 4.6m units, in line with 2014. Jeep's strong global performance continued with record worldwide shipments of 1.3m up 21%.
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Adjusted EBIT was EUR5.3bn, up 40% from EUR3.8bn 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 profit was EUR2.0bn, up 91% compared to EUR1.1bn in 2014. Net profit in 2015 was EUR377m, 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.
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 EBIT was EUR5,267m, an increase of EUR1,501m (+40%; +19% CER) from prior year. The increase in adjusted EBIT was primarily attributable to increases in NAFTA (+EUR2,271m), EMEA (+EUR254m) and Components (+EUR110m), partially offset by decreases in APAC (-EUR489m), LATAM (-EUR376m) and Maserati (-EUR170m). Adjusted EBIT excludes a total of EUR2,203m pre-tax impact of unusual items, of which EUR1,631m relates to NAFTA, EUR219m to LATAM, EUR205m to APAC and EUR47m to EMEA.
Net profit for the year was EUR377m, compared to EUR632m for 2014 and profit attributable to owners of the parent was EUR334m compared to EUR568m for 2014. Adjusted net profit for the year was EUR2,026m, compared to EUR1,060m for 2014.
2016 Guidance
As a result of the completion of the spin-off of Ferrari on January 3, 2016, the group's results for 2016 will no longer include the results or financial position of Ferrari. The group indicates the following guidance:
- NAFTA and EMEA continue trend of improved performance
- LATAM returns to modest profitability with Pernambuco reaching full model production in second half of 2016
- APAC profitability improving in second half of 2016 as Jeep manufacturing localization in China completed
- Maserati performance improving in second half of 2016 following Levante launch
- Capital expenditures in line with 2015
According to reuters, the automaker raised the financial targets of its turnaround plan following the better-than-expected performance in North America and Europe and strong sales of Jeep SUVs.
However, it reduced its profit margin forecast for Latin America given tough market conditions in Brazil and uncertain prospects for recovery there.
FCA also said that while it was committed to the relaunch of Alfa Romeo, one of the cornerstones of its business plan along with Jeep and Maserati, the sporty brand's planned product line up would only be completed by mid-2020.
The carmaker said it now saw adjusted operating profit of EUR8.7-9.8bn in 2018 and revenues of around EUR136bn, up from previous forecasts of EUR8.3-9.4bn and around EUR129bn.
The comparison forecasts have been updated to exclude luxury unit Ferrari, which was spun off at the start of this year.
Reuters said the upgrade came as a surprise to financial markets, with most analysts forecasting the turnaround plan would fall short of its initial goals due to model delays, deferred investments and slowing demand in Asia and Latin America.
"These targets were revised upwards when previous targets were already well above consensus," one trader told the news agency.
Traders said that while the quarterly performance was very strong and the company impressed with its debt cutting efforts, the guidance for this year was cautious.
FCA's North American operations accounted for nearly 85% of group profits last year, helped by higher sales of Jeep SUVs and RAM trucks, as well as favourable currency moves.
