Fiat Chrysler Automobiles has reported a third quarter loss of EUR299m compared to a net profit of EUR188m last year. The swing to loss mainly reflected one-off charges associated with US recalls.
FCA said that the quarter included an EUR761m pre-tax charge for estimated future recall campaign costs for vehicles sold in prior periods in NAFTA. There was also an EUR142m charge for the write-down of inventory and incremental incentives for vehicles damaged in the Tianjin (China) port explosion in August – though FCA said that is “expected to be recovered through insurance”.
However, the company highlighted net revenues up 17% in the quarter at EUR27.5bn, and adjusted EBIT at €1.3 billion, up 35%, driven by strong performance in NAFTA, Ferrari and its components operations.
Higher revenues in NAFTA (+35%; +15% Constant Exchange Rates (CER)), EMEA (+13%; +11% CER), Ferrari (+9%; +3% CER), Components (+13%; the same at CER) were partially offset by decreases in LATAM (-30%; -15% CER), APAC (-47%; -49% CER) and Maserati (-21%; -28% CER).
Adjusted EBIT was EUR1,303m, up EUR335 million (+35%; +15% CER) from Q3 2014. Adjusted EBIT excludes the EUR761m pre-tax charge for estimated future recall campaign costs and EUR142m for the write-downs associated with the Tianjin damage in August.
FCA said that NAFTA Adjusted EBIT more than doubled from EUR554m in Q3 2014 to EUR1,186m driven by higher volumes, improved mix and pricing.
FCA confirmed its full-year guidance (2015) as revised upwards in Q2. The guidance includes worldwide shipments of around 4.8m units, net revenues over EUR110bn and net profit around EUR1.2bn.