03 May 2019

FCA: 2019 First Quarter Results

FCA reports first quarter 2019 results with Net profit from continuing operations of €0.5 billion, Adjusted net profit of €0.6 billion, Adjusted EBIT of €1.1 billion, margin at 4.4%. Full-year guidance is confirmed.

First quarter Adjusted EBIT and margin declined versus the prior year, as anticipated, largely due to the non-repeat of parallel production of the previous generation Jeep Wrangler alongside the new model and transitioning to our new commercial strategy in EMEA. The effect of reduced volumes globally were partially offset by continuing growth in Ram volumes, improved net pricing, particularly in North America, along with better channel and product mix in several markets. An important highlight this quarter is the strong performance of the Ram 1500, which claimed the number two position in the profitable U.S. light-duty segment for the quarter with a market share of 23.3%, an increase of 4.5 percentage points over last year.

We took several steps to strengthen our business in the first quarter. These included the successful negotiation of a labor agreement in Italy and continued implementation of cost-containment actions in all regions. In addition, we announced an extension to our partnership with Groupe PSA whereby FCA will increase production capacity in the Sevel joint operation, enabling our future growth in the high margin LCV segment in Europe.
Other steps taken include the addition of new senior leaders to drive improved performance; an aggressive focus on Maserati distribution network and marketing; and, progress towards a restructure of our JV in China.

Further, the launches of the all-new Ram Heavy-Duty and Jeep Gladiator are on track and generating enthusiastic responses from the market. These products will contribute to volume and margin expansion in North America, particularly in the second half of the year. At the Geneva International Motor Show, the Group unveiled two Jeep PHEV models slated initially for the EMEA market beginning early 2020, as well as a new Alfa Romeo compact SUV concept and a high-tech, modular and electrified Fiat concept.

In the U.S., we announced plans for a major industrial investment that will support the introduction of two new Jeep-branded "white-space" SUVs, both with electric powered variants. Similarly, the confirmation of the previously announced manufacturing investment in Italy will accelerate the introduction of key PHEV and BEV products in the EMEA markets.

Finally, the sale of Magneti Marelli was completed on May 2, 2019, resulting in cash proceeds of €5.8 billion. The Board of Directors approved an extraordinary cash distribution of €1.30 per share, or approximately €2.0 billion, to be paid on May 30, 2019 to shareholders of record on May 21, 2019, with an ex-dividend date of May 20, 2019. 

 

Here the full text of the Press Release 

 

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