Chrysler 2015 Annual Report Download - page 7

2015 | ANNUAL REPORT 7
Letter from the Chairman
and the CEO
Letter from the Chairman and the CEO
FCA closed on a very strong note its first full year as a single, unified global group.
Our results were well in excess of our full-year guidance, further underscoring our commitment to achieve the
ambitious 2018 financial targets set out in our five-year plan, and our determination to be a global automaker
performing at the highest level.
Excluding Ferrari, net revenues for the year climbed 18 percent to €110.6 billion. Adjusted EBIT came in at €4.8 billion,
43 percent higher than 2014, with NAFTA more than doubling and EMEA returning to profitability one year ahead of plan.
Our net industrial debt was significantly reduced during 2015 and, after the effects of the Ferrari spinoff completed at
the beginning of January, the Group begins 2016 operations with net industrial debt of €5 billion, down from the €7.7
billion at year-end 2014.
In order to further fund the capital requirements of the Group’s five-year business plan, the Board of Directors has
decided not to recommend a dividend on FCA common shares for 2015.
Worldwide shipments totaled 4.6 million units, in line with prior year, with continued global expansion for the Jeep
brand, which posted an all-time annual record of 1.3 million vehicles shipped worldwide.
Looking at the performance of our mass-market operations by region, in NAFTA we continued to outperform the
market, with sales up seven percent over the prior year.
In the United States, we closed the year posting our 69th consecutive month of year-over-year sales gains and our
best annual sales since 2006. In Canada, we finished the year as market leader, with 73 straight months of growth and
the strongest annual sales performance in our history.
In LATAM, our results were down due to continued macroeconomic weakness in the region resulting in poor trading
conditions. Despite this situation, FCA maintained its leadership in Brazil, a position we have held for 14 years. The
opening of the new Pernambuco industrial complex in April 2015 is a key move to further consolidate our leadership
and to increase the profitability of our operations in the region going forward.
In APAC, results were positive, although below the prior year’s level primarily due to the contraction in demand for
imported vehicles in China, as competition from local producers continues to intensify. Results were also impacted by
the interruption of supply following the Tianjin port explosion in August.
On the back of a more favorable product mix, higher volumes and positive pricing actions, results in EMEA
improved significantly, with the region posting an Adjusted EBIT of €213 million, compared with negative €41 million
in the prior year.
There were also positive contributions from Maserati, although below the 2014 level, and from Components.
With regard to the near-term outlook, we gave guidance for the current year, with expected revenues of €110 billion or
higher, Adjusted EBIT in excess of €5.0 billion and net industrial debt below €5.0 billion.
We will work towards the achievement of these targets with the same spirit that has brought us this far, that of a global
company that operates by linking the achievement of financial targets with respect for all stakeholders, convinced that
success will ultimately be judged by how it is achieved.
In an era where values such as transparency, integrity and reliability are often put to the test, we believe it is
increasingly important that the entire organization work to ensure that our development is responsible. This is why our
commitment to sustainable growth is deeply rooted in our corporate culture; it is integral to our business model and,
above all, it is something that is non-negotiable.
We believe that the true value of a multi-national organization such as ours is also determined by its level of
environmental awareness, respect for people, fair and transparent conduct in commercial relationships and positive
contribution to local communities.