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https://www.fcagroup.com/en-US/medi...2019/july/FCA_2019_SECOND_QUARTER_RESULTS.pdf
FCA reports strong second quarter 2019 results with Net profit from continuing operations at €0.8 billion, Adjusted net profit of €0.9 billion, Adjusted EBIT of €1.5 billion, margin at 5.7%. Full-year guidance is confirmed.
“We continue to deliver strong performance in North America and LATAM. Robust demand for our new products, along with steps we've taken to exert discipline across all of our businesses, have generated the momentum to achieve our full-year 2019 guidance.” - Mike Manley, CEO
While Group Adjusted EBIT was in line with prior year, North America achieved record Q2 results despite shipments being down 12%, largely attributable to dealer stock reductions of approximately 80 thousand units. The successful launch of the all-new Ram heavy-duty pickup, along with the continued success of the all-new and Classic Ram 1500, resulted in a U.S. large pickup market share of 27.9% in Q2, up 7 ppts from last year. In addition, the all-new Jeep Gladiator pickup launch is exceeding our expectations with production already achieving full run rate. Although new to the market, the Jeep Gladiator earned a 7.7% share of its U.S. segment in June.
Solid financial results in LATAM were driven by strong commercial performance in Brazil where we retained the market leader position.
Our Industrial free cash flows were strong as well at €0.8 billion, though this was down €0.7 billion from prior year due to higher capex and Q2 payments of €0.4 billion related to U.S. diesel emissions matters accrued for in 2018.
We have also taken a number of steps to further strengthen our fundamental business performance. Our leadership team was complemented with the addition of two members to our Group Executive Council recruited from outside the company. In China, we overhauled the leadership and structure of our joint venture. We also continue to strengthen business disciplines around our management of costs, inventories, commercial initiatives and product planning processes.
In addition, during the quarter we continued to lay the foundation for future competitiveness and regulatory compliance, including securing local community support for the new Mack Avenue assembly plant in Detroit (Michigan) that will produce the next generation Jeep Grand Cherokee and an all-new 3-row full-size Jeep SUV; confirming investment in the Mirafiori plant in Turin (Italy) to produce the all-new battery electric Fiat 500; and adding key agreements with Enel X and ENGIE to a growing network of technology partners.
In the second half of the year, we will continue to focus on the underperforming areas of our business, including Maserati, where we’ve reinforced our leadership team; and EMEA, where we continue to target increased margins through the impact of restructuring actions, better management of channel mix, and targeted product strategies. Based on the strength of our second quarter results and the initiatives put in place to maintain this momentum, we remain confident in our ability to achieve our full-year 2019 guidance.
FCA reports strong second quarter 2019 results with Net profit from continuing operations at €0.8 billion, Adjusted net profit of €0.9 billion, Adjusted EBIT of €1.5 billion, margin at 5.7%. Full-year guidance is confirmed.
“We continue to deliver strong performance in North America and LATAM. Robust demand for our new products, along with steps we've taken to exert discipline across all of our businesses, have generated the momentum to achieve our full-year 2019 guidance.” - Mike Manley, CEO
While Group Adjusted EBIT was in line with prior year, North America achieved record Q2 results despite shipments being down 12%, largely attributable to dealer stock reductions of approximately 80 thousand units. The successful launch of the all-new Ram heavy-duty pickup, along with the continued success of the all-new and Classic Ram 1500, resulted in a U.S. large pickup market share of 27.9% in Q2, up 7 ppts from last year. In addition, the all-new Jeep Gladiator pickup launch is exceeding our expectations with production already achieving full run rate. Although new to the market, the Jeep Gladiator earned a 7.7% share of its U.S. segment in June.
Solid financial results in LATAM were driven by strong commercial performance in Brazil where we retained the market leader position.
Our Industrial free cash flows were strong as well at €0.8 billion, though this was down €0.7 billion from prior year due to higher capex and Q2 payments of €0.4 billion related to U.S. diesel emissions matters accrued for in 2018.
We have also taken a number of steps to further strengthen our fundamental business performance. Our leadership team was complemented with the addition of two members to our Group Executive Council recruited from outside the company. In China, we overhauled the leadership and structure of our joint venture. We also continue to strengthen business disciplines around our management of costs, inventories, commercial initiatives and product planning processes.
In addition, during the quarter we continued to lay the foundation for future competitiveness and regulatory compliance, including securing local community support for the new Mack Avenue assembly plant in Detroit (Michigan) that will produce the next generation Jeep Grand Cherokee and an all-new 3-row full-size Jeep SUV; confirming investment in the Mirafiori plant in Turin (Italy) to produce the all-new battery electric Fiat 500; and adding key agreements with Enel X and ENGIE to a growing network of technology partners.
In the second half of the year, we will continue to focus on the underperforming areas of our business, including Maserati, where we’ve reinforced our leadership team; and EMEA, where we continue to target increased margins through the impact of restructuring actions, better management of channel mix, and targeted product strategies. Based on the strength of our second quarter results and the initiatives put in place to maintain this momentum, we remain confident in our ability to achieve our full-year 2019 guidance.
