Chrysler 2013 Annual Report Download - page 47

46 Report on Operations Financial Review – Fiat Group
Results by Segment
Following is a summary of revenues, trading profit and EBIT by segment and comparison with 2012.
NAFTA
(€ million) 2013 2012(*) Change
Net revenues 45,777 43,521 2,256
Trading profit 2,220 2,443 -223
EBIT 2,290 2,491 -201
Shipments (000s) 2,238 2,115 123
(*) Figures previously reported for 2012 have been restated to reflect application of the amendment to IAS 19. Restatement resulted in trading profit and EBIT being reduced
by €250 million.
Group shipments in NAFTA totaled 2,238,000 units for 2013, a 6% increase over 2012. A total of 1,876,000 vehicles were shipped in the U.S.
(up 7% from 2012), 269,000 in Canada (up 5%) and 93,000 for Mexico and other.
Revenues for 2013 were €45,777 million, up €2,256 million or 5% over the prior year (+9% at constant exchange rates). Approximately
€1.4 billion of the increase was due to a 6% increase in shipments driven primarily by increased demand for Chrysler Group vehicles,
including the Ram 1500 trucks, the launch of the all-new 2014 Jeep Cherokee which began shipping to dealers in late October 2013, the
Jeep Grand Cherokee, which launched in the first quarter of 2013, as well as increases in the Jeep Wrangler. These increases were partially
offset by a reduction in Jeep Liberty shipments due to its discontinued production at the end of the second quarter of 2012 in preparation
of the all-new 2014 Jeep Cherokee. During the third quarter of 2012, Chrysler Group continued to ship the residual Jeep Liberty inventory
to dealers.
Approximately €800 million of the increase in revenues was attributable to favorable vehicle line mix as there was a higher percentage growth in
truck shipments as compared to minivan and passenger car shipments. In addition, revenues increased by approximately €800 million as a result
of favorable net pricing from vehicle content enhancements in the Group’s 2014 model year vehicles as compared to prior model years. Further,
approximately €300 million of the increase in revenues was due to a favorable shift in market mix to greater retail shipments as a percentage of
total shipments, which is consistent with the Group’s continuing strategy to grow U.S. retail market share while maintaining stable fleet shipments.
Typically, the average revenue per vehicle for retail shipments is higher than the average revenue per vehicle for fleet shipments, as retail
customers tend to purchase vehicles with more optional features. Additionally, revenues were negatively impacted by €1.5 billion in currency
translation impacts.
Trading profit for 2013 was €2,220 million (€2,443 million for 2012, IAS 19 restated), with positive volume/mix (+€588 million) and pricing
(+€868 million) effects that were more than offset by higher industrial costs (€1,456 million), including costs associated with new models and
content enhancements as well as higher R&D amortization, increased SG&A costs (€90 million) to support volume growth and commercial
launches of the new products, in addition to negative currency translation impacts (~€80 million).
EBIT was €2,290 million (€2,491 million for 2012, IAS 19 restated), mainly reflecting lower trading profit and €23 million higher net unusual
income. For 2013, net unusual income of €71 million included a gain of €166 million, with a corresponding net reduction to pension obligations
following amendments to Chrysler’s U.S. and Canadian salaried defined benefit pension plans, partly offset by charges related to the June 2013
voluntary safety recall for the 1993-1998 Jeep Grand Cherokee and the 2002-2007 Jeep Liberty, as well as the customer satisfaction action
for the 1999-2004 Jeep Grand Cherokee.