FIAT Chrysler Q1 2020 Earnings to be released today (May 5th) and Earnings call

[AlexB]

Hello. Please stay safe!

For really the first time since the whole pandemic broke out, FIAT Chrysler will be speaking, and speaking to Wall Street analysts.
Lately there is always some sort of product news that released, and given Ford burned almost $6 billion and projected $13 billion of cash burn for Q2 2020( largely due to paying suppliers) what Manley & Palmer will say is going to be highly key.

News Dashboard

News Dashboard

www.fcagroup.com

1 hour before 8:00 AM EST (Detroit & NY time).

 

[AlexB]

I will be attempting a in-time Play By Play of the Call with Manley & Palmer while it happens.

 

[AlexB]

On a key note GM cancelled its $2.3 billion stock dividend which is what I sort of predicted MERGED: FCA & The COVID-19 (Coronavirus) Crisis:

GM Suspends Its Dividend to Shore Up Its Balance Sheet

The giant auto maker suspended its dividend, halted share buybacks and extended a credit line to shore up its balance sheet during the coronavirus crisis.

www.barrons.com

But now, everybody who covers Auto biz on Wall Street expects FCA to follow suit, and while some French analysts think PSA is worth more than "50-50"().

 

[AlexB]

On a personal note, the Gladiator is starting to be temping especally if I can get it for under U$D30,000......

 

[AlexB]

Net loss of -€1,694 billion (includes non-cash writedown of assets in Italy and a writedown of Brazil tax breaks for grand totally of -€1.1 billion.

https://www.fcagroup.com/en-US/media_center/fca_press_release/FiatDocuments/2020/may/FCA_2020_FIRST_QUARTER_RESULTS.pdf

 

[AlexB]

Capex at €2.3 billion(key part of product spending.

 

[AlexB]

North America/"Chrysler"
Q1
Revenue of €14,541
EBIT of €548 million (Margin of 3.8%)
Puts and Takes: Driven by the decline in production due to the Coronavirus impact (down 16% Year-Over-Year), together with higher product development- related cost while positive item are higher pricing & mix together with favorable currency.

 

[AlexB]

EMEA ("Italian operations") Q1:
Revenue: €3,732
EBIT loss of -€270 million (negative EBIT margin of -7.2%).

 

[AlexB]

Latin America:
Revenue of € 1,322 billion
EBIT loss of - €27 million (negative EBIT margin of -2.0).

 

[AlexB]

MASERATI Q1:
Revenue of €254 million
EBIT loss of -€75 million (negative EBIT margin of -29.5%)

 

[AlexB]

APAC/Asia
Revenue: €466 million (Remember China is a JV and therefore no reportable revenue)
EBIT loss of €59 million (negative EBIT margin of -12.7%).

 

[AlexB]

Here's the presentation: €2 billion cost cutting annouced.

https://www.fcagroup.com/en-US/investors/events/quarterly_results_presentations/FCA_2020_First_Quarter_Results_Presentation.pdf

 

[AlexB]

Manley is showing FCA's doing social distancing and giving all workers PPE.He notes it not a "switch" but a series of stages.

 

[AlexB]

Manley mention FCA gained marketshare in North and South America highlight the company strength in LCV's,UV's, pickups espcially the RAM 1500.

 

[AlexB]

In the call, Palmer mentions FCA is at zero net cash.

 

[AlexB]

Palmer states Q2 2020 will be the worst financial quarter ever since the Merger of FIAT and Chrysler into FCA.

 

[AlexB]

Manley says FCA emplyees get masks as soon as they show up, and safey comes first.

 

[AlexB]

Manley states FCA is commited to Merger with PSA and seek its closing at the end of the year-Early 2021.

 

[AlexB]

Manley downplays rumors of changes to Merger agreement saying he getting ahead of the analysts questions.

 

[AlexB]

Manley states FCA will work closely with U.S. Governors to ensure safe production resumes with priority to Higher-Margin products.
FCA will cut €1 billion of product spending this year.