FCA: 2018 Third Quarter Results

FCA reports record Adjusted EBIT at €2.0 billion and margin at 6.9%, including Magneti Marelli. NAFTA up 51% with margin at 10.2%, Adjusted Net Profit at €1.4 billion, up 51%. Net Profit down 38% to €0.6 billion, including €0.7 billion charge related to U.S. diesel emissions matters. Operating metrics guidance confirmed; Net industrial cash reflects production realignment to expected demand and accelerated discretionary pension contribution.

• Worldwide combined shipments(2) of 1,160 thousand units, up 3%, mainly due to NAFTA and LATAM, partially offset by APAC and EMEA
• Net revenues(1) of €28.8 billion, up 9% (up 11% at constant exchange rates, or CER), with higher shipments, positive pricing and mix
• Adjusted EBIT(1),(3) of €1,995 million, up 13% (up 16% at CER), with margin up 20 bps to 6.9%
• Adjusted net profit(1),(3) of €1,396 million, up 51% (up 54% at CER); Net profit of €564 million, down 38% (down 33% at CER) reflecting a €0.7 billion charge for estimated costs related to U.S. diesel emissions matters(*)
• Net industrial debt(1) of €0.2 billion, after acceleration of €0.6 billion discretionary pension contribution, net of tax
• Moody's raised FCA's outlook to positive from stable and affirmed its Corporate Family Rating at "Ba2"
• Agreement announced to sell Magneti Marelli to CK Holdings Co., Ltd. The combined business will operate under the name Magneti Marelli CK Holdings. The agreement represents a transaction value of €6.2 billion
• Transaction enables payment of an extraordinary dividend of €2 billion at closing, which is in addition to the commencement of an annual ordinary dividend in Spring 2019 of 20% of earnings as presented at 2018 Capital Markets Day. Both are subject to Board of Directors and shareholder approval

Here the full text of the Press Release