F&I Management & Training

Group revenues were nearly €20 billion on the back of worldwide shipments of more than 1 million and trading profit came in at €618 million. Net industrial debt was €7.1 billion with liquidity strong at over €21 billion.

Group revenues were €19.8 billion, 2% lower in nominal terms but flat over the prior year at constant exchange rates. NAFTA decreased 3% to €10 billion and EMEA was down 4% year-over-year to €4.4 billion. LATAM reported revenues of €2.5 billion, a 5% decrease in nominal terms (+6% at constant exchange rates), and APAC increased more than 35% to €1 billion. Luxury and Performance brands were up 4% over Q1 2012 to €0.7 billion, driven by Ferrari. For Components, revenues were €1.9 billion, down 4% over Q1 2012.

Trading profit totaled €618 million for the quarter. The NAFTA region reported a trading profit of €397 million, a €217 million decrease over Q1 2012 (as restated for adoption of IAS 19 as amended), attributable to a reduction in shipments due to key model launches and preparation for the Q2 production launch of the all-new 2014 Jeep Cherokee and the associated industrial costs, partly compensated for by continued favorable pricing. LATAM performed to expectations with a trading profit of €186 million (€235 million for Q1 2012), down 10% net of currency translation impacts and a less favorable production mix due to the shift of the annual shutdown of the Brazilian plant from December 2012 to February 2013 and lower volumes of Chrysler products due to import quotas from Mexico introduced during 2012. APAC posted a trading profit of €100 million, an improvement of €23 million over the prior year, with the impact of volume increases more than offsetting higher sales and marketing costs in support of the Group's expansion in the region. In EMEA, losses were reduced by €50 million over the prior year to €157 million, with discipline in SG&A spending and better product mix more than offsetting the impacts of continued deterioration in trading conditions. Luxury and Performance brands contributed €76 million, essentially in line with Q1 2012, with Ferrari posting a 43% year-over-year improvement and results for Maserati affected by the ramp-up of the new Quattroporte, which started production in late January. For Components, Q1 trading profit was €33 million, also in line with Q1 a year ago.

EBIT was €603 million: the €232 million decrease mainly reflected lower trading profit in NAFTA and LATAM, with earnings for mass-market decreasing 36% in NAFTA to €400 million and 46% in LATAM to €127 million (including €59 million of unusual charges related to the February 2013 devaluation of the Venezuelan bolivar fuerte relative to the U.S. dollar). For APAC, EBIT increased 15% to €98 million, while EMEA reduced losses by €59 million to €111 million. For Luxury Cars and Components, EBIT was €76 million and €35 million respectively, in line with Q1 2012.

Net financial expense totaled €443 million, an increase of €11 million over Q1 2012. Net of the impact of the marking-to-market of the Fiat stock option-related equity swaps (gains of €15 million in Q1 2013 and €38 million in Q1 2012), net financial expense was down €12 million over Q1 2012.

Profit before taxes was €160 million (€403 million in Q1 2012, restated for adoption of IAS 19 as amended). The decrease of €243 million reflected the €232 million reduction in EBIT and an €11 million increase in net financial charges.

Income taxes totaled €129 million. Excluding Chrysler, income taxes were €100 million and related primarily to taxable income of companies operating outside Italy and employment-related taxes in Italy.

Net profit was €31 million for the quarter (€262 million for Q1 2012, restated for adoption of IAS 19 as amended). There was a loss of €83 million attributable to owners of the parent  (compared with a €35 million profit for Q1 2012). For Fiat excluding Chrysler, the net loss was reduced by €41 million over Q1 2012 to €235 million.

Net industrial debt at 31 March 2013 was €7.1 billion, up from €6.5 billion at year-end 2012. For Fiat excluding Chrysler net industrial debt was €5.7 billion, a €0.7 billion increase over year-end 2012 entirely attributable to capital expenditure for the period: however, the change in net debt for the quarter was significantly lower at half the amount for Q1 2012. Chrysler reduced net industrial debt by €0.1 billion to €1.4 billion, with over €1 billion in positive cash flow from operating activities offset by €0.9 billion in capital expenditure.

Total available liquidity, inclusive of €3.0 billion in undrawn committed credit lines, was €21.3 billion (€20.8 billion at year-end 2012), of which €11.0 billion related to Fiat excluding Chrysler (€11.1 billion at year-end 2012) and €10.3 billion to Chrysler (€9.8 billion year-end 2012). Exchange rates development contributed €0.4 billion to the increase of total liquidity available to the Group, of which €0.3 billion related to Chrysler.

Vehicle shipments in NAFTA totaled 510,000 units for Q1 2013, representing a 2% decrease versus Q1 2012. In the U.S., vehicle shipments were 420,000 (down 0.5%), in Canada 70,000 (down 7%) and 20,000 in Mexico.

During the quarter, the Group leveraged dealer inventory, reducing existing stock to compensate for lower production volumes associated with key product changeovers.

Vehicle sales^[1] in the NAFTA region totaled 508,000 for the quarter, an increase of 7% over Q1 2012. Sales increased 8% in the U.S. to 429,000 and 4% in Canada to 58,000, outpacing the market in both countries. In the U.S., the Group has posted 36 consecutive months of year-over-year sales gains. Similar to Q1 2012, the Group was the market leader in Canada.

The U.S. vehicle market closed Q1 2013 up 6% to 3.75 million vehicles. The Group's overall market share was up 0.2 p.p. over the prior year to 11.4%. Jeep vehicle sales totaled 101,000 for the quarter, down 12% year-over-year, primarily due to the phase-out of the Jeep Liberty, pending the production launch of the all-new 2014 Jeep Cherokee in Q2 2013, and a 12% decline for the Grand Cherokee attributable to changeover to the new 2014 model. Dodge, the Group's number one selling brand in the region, posted vehicle sales of 159,000 during Q1 2013, up 26% from the prior year mainly driven by sales of the new Dart (23,000 vehicles - not available in Q1 2012), the Avenger (+48%), the Challenger (+38%), the Journey (+27%) and the Durango (+23%). The Ram truck brand posted a sales increase of 14% to 79,000 vehicles, reflecting sales increases for both light-duty and heavy-duty pickups, up 19% and 18%, respectively. Chrysler brand sales totaled 80,000 vehicles during Q1 2013, up slightly from the same period last year.

The Canadian vehicle market declined 2% year-over-year to 363,000 vehicles. The Group's total market share was up 1.0 percentage point year-over-year to 16.0%, mainly driven by strong performance for the Ram pickup truck, Jeep Compass and new sales of the Dodge Dart.

Fiat branded U.S. and Canada sales, consisting of the Fiat 500 and Fiat 500 Cabrio, were 11,000 vehicles for the quarter, up slightly over the same period last year.

The NAFTA region reported revenues of €10 billion, down 3% over the prior year, primarily due to lower shipment volumes.

Trading profit for Q1 2013 was down 35% over the prior year to €397 million, primarily attributable to a reduction in shipments due to key model launches and preparation for the Q2 production launch of the all-new 2014 Jeep Cherokee and the associated industrial costs partly compensated for by continued favorable pricing. EBIT was €400 million, reflecting the trading profit performance for the period.

During the quarter, the Group received various awards and recognitions, including six awards for the Dodge Dart, twelve Group models being included in the "2013 IIHS Top Safety Picks", and the 2013 Ram 1500 winning the "2013 North American Truck/Utility of the Year", Motor Trend's "2013 Truck of the Year", and Four Wheeler Magazine "2013 Pickup Truck of the Year".

LATAM

In Q1 2013, Group shipments in the LATAM region increased 7% year-over-year to a total of 230,000 vehicles.

In Brazil, the passenger car and light commercial vehicle market was up 2% over the prior year to 789,000 units, representing an all-time record for the first quarter.

The Group strengthened its leadership in the Brazilian market, with overall share at 22.9% (the best Q1 share in Brazil since 2010) an increase of 0.2 p.p. over Q1 2012 and 3.0 p.p. ahead of the nearest competitor. Group products continued to perform well, taking a combined 27% share of the A/B segment, driven by the continued success of the Novo Palio. In addition, the Siena and Grand Siena posted a 115% year-over-year jump in sales and Strada sales were up 6% over the prior year to close the quarter with a 49% segment share.

The Group shipped 191,000 passenger cars and light commercial vehicles in Brazil, representing an 8% increase over Q1 2012. In March Fiat launched the Novo Uno MY 2014 with the addition of the College version and the Dodge Durango was also introduced during the quarter.

In May 2012, the Brazilian government reduced IPI tax up to 7% to boost vehicle sales. The reduced rates were originally set to be phased out during H1 2013, with progressive quarterly rate increases starting in January. In March 2013, the government extended the scheme to year-end 2013 and, as a result, the partial increase has been applied only in January.

In Argentina, where the market was in line with the prior year at 241,000 units, Group sales totaled approximately 29,000 units with share up 0.1 p.p. to 12.2%. In the A/B segment, share was 15.1%, with the Palio recording significant year-over-year growth (+156% vs. Q1 2012).

Group shipments in Argentina totaled 29,000 vehicles, increasing 14% over the prior year on the back of improved supply of imported vehicles from Brazil.

For other LATAM countries, shipments totaled approximately 10,000 units, a decrease of 24% mainly attributable to the political uncertainty in Venezuela.

The LATAM region reported revenues of €2.5 billion, down 5% in nominal terms due to negative currency translation impacts, but up 6% at constant exchange rates as a result of volume growth.

Trading profit was €186 million for the quarter (€235 million for Q1 2012). Net of unfavorable currency translation impacts (€25 million), trading profit was down 10%, with the positive impact of volume growth more than offset by higher industrial costs resulting from a less favoraproduction mix, due to the shift of the annual shutdown of the Brazilian plant from December 2012 to February 2013, and lower volumes of Chrysler products due to the effect of import quotas from Mexico introduced during 2012 in addition to the cost of new advertising campaigns in Brazil. Performance for the quarter was consistent with a full-year target for the LATAM region in excess of €1 billion.

EBIT was €127 million and reflects the trading profit performance for the period and a €59 million foreign currency exchange loss related to the February 2013 devaluation of the Venezuelan bolivar fuerte relative to the U.S. dollar.

APAC

Vehicle shipments in the APAC region (excluding JVs) totaled approximately 32,000 units for Q1 2013, up 28% from a year ago.

Regional demand was higher compared to Q1 2012 led primarily by growth in China and Australia, but with Japan, India and South Korea down over the prior year.

Group retail sales, including JVs, totaled 39,000 units for the first quarter, up 45% over the prior year significantly outperforming the market (+6%), mainly due to the strong performance in China (+109%) and Australia (+65%). Jeep brand sales were up 26% over the prior year with robust growth in Australia (+45%), China (+25%) and South Korea (+50%). The locally-produced Fiat Viaggio was once again the Group's second best-selling nameplate in the region (after the Jeep Compass).

APAC revenues totaled €968 million, up 36% over Q1 2012 (+38% at constant exchange rates).

Trading profit was €100 million, up 30% compared with €77 million for Q1 2012, mainly driven by volume growth partially offset by industrial costs and SG&A to support business expansion plans. EBIT, which also reflects the contribution from joint ventures, totaled €98 million, compared with €85 million in Q1 2012.

During the quarter, the Group increased focus on development of the Fiat, Alfa Romeo and Fiat Professional brands in the region, targeting significant growth in the Australian market. In South Korea, the Fiat brand was re-introduced with the launch of the Fiat 500, 500C and Freemont. The Fiat Viaggio continued to gain momentum in China, picking up 59 media awards since its introduction in September 2012, including 2012 "Sedan of the Year" byChina Mainstream Media Alliance.

Dodge Journey was re-launched in China in February with new and improved features. The Shanghai Auto Show in April was the venue for the Asian debut of the all-new 2014 Jeep Cherokee, the new 2014 model year Jeep Grand Cherokee with 8-speed automatic transmission, the 10^th Anniversary special edition of the Jeep Wrangler Rubicon and the all-new Chrysler 300S.

EMEA

Passenger car and LCV shipments in the EMEA region totaled 245,000 units for the first quarter, representing a decrease of around 15,000 units (-6%) over Q1 2012.

The Group shipped a total of 195,000 passenger cars (-8% year-over-year) and 50,000 LCVs (+5%).

In Europe (EU27+EFTA), the passenger car market registered a significant year-over-year decline (-10% to 3.1 million vehicles) with sales down in all major markets except the UK, where there was a 7% increase. In Italy, the market was down 13%, reaching the lowest level since 1980 despite improved demand for LPG and CNG-powered vehicles.

There were double-digit shipment decreases in France (-15%), Germany (-13%) and Spain (-11%). Elsewhere in Europe, there was an average 13% decrease in demand. The impact of the economic downturn was also evident in northern Europe, with markets such as Finland and Sweden recording year-over-year declines of 42% and 18%, respectively.

Group brands recorded a combined 6.4% share of the European market, a 0.1 percentage point gain over Q1 2012 (+0.2 p.p. over Q4). The Fiat Panda and 500, the two best-selling models in the A segment, posted shares of 14.7% and 12.7%, respectively. The 500L also performed well, ranking second in the Small MPV segment - just a few months after launch - with a 16.6% share.

In Italy, the Group increased market share 1.1 p.p. over Q1 2012 to 29.0%, benefiting also from its performance in the alternative fuel segment, where market demand was up 48% year-over-year. For other major markets, share was higher in Spain (+0.4 p.p. to 3.8%) and substantially flat year-over-year in France (3.6%), the UK (3.0%) and Germany (2.9%).

The Europeanlight commercial vehicle market (EU27+EFTA) registered a 10% decrease over Q1 2012 to 376,000 units, with overall demand again reflecting the sharp decline in Italy (-24%).

Fiat Professional closed the quarter with an estimated 11.6% share^[2], a 0.4 p.p. increase over Q1 2012 driven by positive performance in all major European markets. Excluding Italy, the Group's European market share was 9.4% for the quarter, representing a 0.8 percentage point year-over-year increase. Group share of the Italian market was 43.5%, representing an increase of 1.2 p.p. over Q1 2012. With 25,000 units sold, the Fiat Ducato was one of the most popular models in its segment with a 19.7% share (+1.8 p.p. over Q1 2012).

EMEA closed the quarter with revenues of €4,350 million, down 4% over the same period in 2012. The trading performance improved €50 million or nearly 25% over the prior year, with a reported trading loss of €157 million for the quarter. That result was achieved on the back of disciplined SG&A spending and better mix, mostly relating to the 500L, which more than offset lower volumes and continued pricing pressures. EBIT was negative at €111 million (negative €170 million for Q1 2012), including €38 million in result from investments (slightly up over Q1 2012).

During the quarter, the Fiat brand presented the 1.6L MultiJet II and 0.9L TwinAir Turbo engine versions (both 105 hp) of the 500L, as well as unveiling the Trekking model at the Geneva Motor Show.

Alfa Romeo unveiled the 4C sport coupé in Geneva to be released in the exclusive Launch Edition, followed a few months later by the standard production version.

The Jeep brand revealed the European premiere of the new 2014 Grand Cherokee and 2014 Compass, in addition to the 10th Anniversary special edition of the Wrangler Rubicon.

LUXURY AND PERFORMANCE BRANDS

Ferrari

During the first quarter, Ferrari shipped a total of 1,798 street cars, representing a 4% increase over the prior year driven primarily by 8-cylinder models (+5%) and, in particular, the contribution of the 458 Spider. For 12-cylinder models, sales were in line with the prior year with positive performance for the new F12 Berlinetta.

The US remained Ferrari's no. 1 market with 456 street cars shipped during the quarter (+14% over Q1 2012) and accounted for 25% of total sales. Volumes were also higher in the Asia-Pacific region, with a total of 336 cars shipped (+18% over 2012), on the back of double-digit growth in Japan and continued positive performance in Australia. In China, shipments were substantially in line with the prior year. In Europe, there was a decrease in shipments over Q1 2012, with positive performance in Switzerland (+19% to 114 vehicles) only partially offsetting declines in other major markets, particularly Italy (-54% to 56 vehicles) where the downward trend that began in 2012 continued. In the Middle East, volumes were up 74% year-over-year with 141 cars shipped and, in South Africa, shipments rose 45% to 32 vehicles.

Ferrari reported first quarter revenues of €551 million, an 8% increase over the same period in 2012 driven primarily by higher sales volumes.

Trading profit and EBIT totaled €80 million (€56 million for Q1 2012). The increase reflected higher sales volumes, as well as the contribution from licensing and the personalization program.

During the quarter, Ferrari presented the new limited edition LaFerrari at the Geneva Motor Show in March. Only 499 units will be made and orders for more than double that amount have already been received.

In a study recently released by Brand Finance, the world's leading brand valuation consultancy, Ferrari was named "most powerful brand" achieving the highest brand rating in the Global 500.

Maserati

During the first quarter, Maserati shipped 1,304 vehicles, a decrease of 5% over the 1,371 vehicles shipped in Q1 2012. Volumes for the Quattroporte were down year-over-year as a result of the changeover to the new model, which entered production in January. As a consequence, shipments for the quarter were down over the prior year in greater China (China-Hong Kong-Taiwan) (-16%), Japan (-14%) and in the Middle East (-48%). By contrast, shipments in Latin America were up 56%, 42% in Europe and 1% in the US.

Maserati posted revenues of €157 million for the quarter, down 4% over the same period in 2012. 

The trading and EBITloss of €4 million, compared with a €16 million profit for Q1 2012, primarily reflected lower volumes and higher selling costs associated with the launch of the new Quattroporte.

The Detroit Motor Show in January was the venue for the world premiere of the new Quattroporte, where Maserati presented both the 530 hp V8 and 410 hp V6 versions.

At the beginning of March, the four-seater GranTurismo MC Stradale was unveiled at the Geneva Motor Show, which was also the venue for the European premiere of the new Quattroporte.

COMPONENTS AND PRODUCTION SYSTEMS

Magneti Marelli

Magneti Marelli reported revenues of €1,469 million for the first quarter, representing a 1% increase over the same period in 2012 (+4% at constant exchange rates).

Positive performances (at constant exchange rates) in NAFTA, China and Brazil were partially offset by contractions in Europe (particularly in Italy, Poland, Germany and the Czech Republic).

The Lighting business line posted higher revenues (+7%) on the back of performance in China, as well as NAFTA where several new products were launched during the second half of 2012. Those increases were only partially offset by a general decline in Europe. For the Electronic Systems business line, revenues were up 20% year-over-year primarily due to sales of telematics box and navigation systems to non-captive customers. Revenues for the Powertrain business line were also higher (+3%) with a significant contribution from sales of components for the Dodge Dart. The remaining business lines reported decreases.

Trading profit for the quarter was €30 million, in line with Q1 2012 (€29 million). The increase in revenues was partially offset by costs associated with new product launches.

EBIT totaled €32 million (€28 million for Q1 2012), including the contribution of €2 million from joint ventures (negative €1 million for Q1 2012).

Teksid

The sector posted revenues of €173 million for the first quarter, a 22% decline over the same period in 2012, with lower volumes for the Cast Iron business unit (-18%) in both Europe and Latin America. For the Aluminum business unit, volumes were up 2% over the prior year.

Teksid closed the quarter with a trading loss of €6 million (trading profit of €3 million in Q1 2012), primarily reflecting the decrease in volumes for the Cast Iron business unit. The sector reported an EBIT loss of €6 million, compared with a €4 million profit for the same period in 2012. 

Comau

Comau reported revenues of €307 million for Q1 2013, a decrease of 14% over the prior year attributable primarily to Powertrain Systems and Service activities in Latin America.

Order intake for Systems totaled €323 million, representing an approximately 20% decrease over the first quarter of 2012 attributable primarily to Powertrain Systems. At 31 March 2013, the order backlog totaled €930 million, a 6% increase over year-end 2012.

Trading profit and EBIT were €9 million, compared to €3 million for the corresponding period in 2012. The increase was mainly attributable to the Body Welding operations.

 
Significant Events

2013 Outlook

Group confirms 2013 guidance as follows:

The manager responsible for preparing the Company's financial reports, Richard Palmer, declares, pursuant to Article 154-bis (2) of Legislative Decree 58/98, that the accounting information contained in this press release corresponds to the results documented in the books, accounting and other records of the Company.

DATED: 01.05.13

FEED: HA