FCA USA LLC announces a hefty increase in profits in the first quarter of the new financial year.

FCA posts record First Quarter Results with Adjusted EBIT nearly doubled to €1.4 billion, and all segments profitable. Adjusted Net Profit reached €0.5 billion. Full year guidance is confirmed.

• Worldwide shipments of 1,086 thousand units, in line with Q1 2015; Jeep worldwide shipments up 15% from Q1 2015 to 326 thousand units
• Net revenues of €26.6 billion, 3% higher than Q1 2015 (+4% at constant exchange rates, or CER)
• Adjusted EBIT margins up in NAFTA, doubling to 7.2%, and up nearly four-fold to 1.9% in EMEA
• Adjusted net profit of €528 million, €497 million higher than Q1 2015
• Net industrial debt of €6.6 billion, an increase of €1.5 billion from December 2015 due to seasonality and foreign exchange impacts; Available liquidity of €24.3 billion, consistent with December 2015
• Long-term debt rating raised to “BB”from “BB-”by Standard & Poor's with“Stable”outlook confirmed
• Market share in U.S. increased to 13.2%, up 70 bps, and in Europe to 6.7%, up 50 bps. Maintained market leadership in Brazil with 180 bps gap to nearest competitor. Increased Jeep sales in APAC by 17% as production localization proceeds
• In the quarter, started production of the all-new Chrysler Pacifica, Maserati Levante and Fiat Mobi; in China, Jeep Renegade production started in April

Market share of 12.9% (+50 bps from Q1 2015) and continued market leader in Canada

• Retail sales(5) totaled 634 thousand units (+8% from Q1 2015)
• Shipments up 3% primarily driven by Jeep, Ram and minivans: U.S. +19 thousand units (+3%), Canada -1 thousand units (-2%), Mexico -2 thousand units (-11%)
• Net revenues increase due to higher shipments, positive vehicle mix, improved net pricing and favorable foreign exchange translation
• Adjusted EBIT increase primarily due to higher net revenues, a decrease in advertising spend, purchasing savings and lower recall campaign costs, partially offset by higher manufacturing and product costs for content enhancements
• Adjusted EBIT excludes total net charges of €49 million primarily related to the net incremental costs for the implementation of the Group's plan to realign existing NAFTA capacity to better meet market demand for pickup trucks and UVs

(5) For U.S. and Canada, "Sales" represents sales to end customers as reported by the Group's dealer network

Market share of 12.7% and continued market leader in Brazil, with market share of 18.1% and 180 bps lead over nearest competitor

• Decrease in shipments reflects poor trading conditions in Brazil due to continued macroeconomic weakness: Brazil down 37 thousand units; Argentina up 4 thousand units
• Net revenues decrease primarily due to lower shipments and unfavorable foreign exchange impacts, partially offset by favorable vehicle mix related to newly launched Jeep Renegade and Fiat Toro
• Adjusted EBIT increase primarily due to favorable vehicle mix, a decrease in marketing costs and manufacturing efficiencies, partially offset by lower shipments, higher industrial costs from new product launches and input cost inflation
• Adjusted EBIT excludes total charges of €24 million primarily related to the re-measurement of net monetary assets in Venezuela after adoption of the new floating exchange rate

Jeep sales up 17% driven by first full quarter of locallyproduced Jeep Cherokee sales in China

• Decrease in shipments (excluding JVs) due to transition to local Jeep production in China JV and lower volumes in Australia due to pricing to offset negative foreign exchange impacts. Sales including JV produced units were 53 thousand units, down from 59 thousand units, with a 17% increase in Jeep sales due to early success of locally produced Jeep Cherokee in China
• Net revenues decrease primarily as a result of lower shipments and unfavorable mix from shipment of vehicles affected by Tianjin port explosion in Q3 2015
• Adjusted EBIT decrease driven by lower net revenues, partially offset by a reduction in direct marketing costs, which are now incurred by China JV, and improved results from China JV

Continued profit and margin improvement along with growth in market share

• European market share (EU28+EFTA) for passenger cars up 50 bps to 6.7% (up 90 bps to 29.1% in Italy) and down 10 bps to 10.9% for light commercial vehicles (LCVs)(6) (down 70 bps to 44.7% in Italy)
• Passenger car shipments up 13% to 240 thousand units and LCVs shipments up 8% to 64 thousand units
• Net revenues increase due to higher volumes and favorable vehicle mix driven by Jeep Renegade, Fiat 500X and Fiat Tipo, partially offset by unfavorable net pricing related to higher incentives in EU
• Adjusted EBIT increase driven by increase in net revenues as well as manufacturing and purchasing efficiencies, partially offset by higher research and development costs

• Production of Levante began in February at Mirafiori plant
• Shipments down due to lower volumes in North America (-16%) and Europe (-8%), partially offset by increase in China (+36%)
• Net revenues decrease due to lower volumes, partially offset by positive mix and foreign exchange impacts
• Adjusted EBIT decrease primarily due to lower volumes(6) Due to unavailability of market data for Italy, the figures reported are an extrapolation and discrepancies with actual data could exist

Continued Adjusted EBIT margin improvement driven by Magneti Marelli

• Net revenues decrease reflects volume declines at Comau and Teksid, which more than offset higher volumes at Magneti Marelli
• Adjusted EBIT increase with favorable mix more than offsetting higher industrial costs
• Magneti Marelli order intake was €653 million (+17% vs Q1 2015) with non-captive at 53%
• Comau order backlog was €972 million, in line with year-end 2015, but lower than at end of Q1 2015