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Archive for the ‘Earnings’ Category

Fiat Chrysler’s Q3 Profits Dinged Due to Diesel Emission Charges

Record earnings before diesel issue may mean dividend payment.

by on Oct.30, 2018

Fiat Chrysler's third quarter earnings were hurt by charges tied to possible diesel emissions violations.

Fiat Chrysler Automobiles net income dropped 38% during the third quarter despite record adjusted earnings before interest and taxes of 2 billion euros, or $2.27 billion, opening the door for the company to pay its first dividend since it was re-organized in 2014.

However, net profit decline 38% to 600 million euros, or $681.16 million, including a 700 million charge related to U.S. diesel emissions matters. FCA is now under investigation by U.S. Department of Justice for the company’s failure to disclose software on about 104,000 diesel-powered pickups and SUVs that regulators said could be similar to the “defeat devices” Volkswagen AG used to cheat emissions-testing on millions of its diesel-powered vehicles.

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FCA’s worldwide shipments increased by 3% and net revenue grew by 9% to 28.8 billion euros during the quarter. Despite cost of the diesel penalties, FCA’s adjusted EBIT in the North America region grew by 51% with margin at 10.2%, according to the financial information released by the company. (more…)

Tesla’s Musk Says Company Focusing on What’s Next

Company looking to expand Model 3 production.

by on Oct.25, 2018

Tesla CEO Elon Musk is now focusing on the next task: another profitable quarter.

With a profitable quarter now in the books, Tesla CEO Elon Musk is looking to meet the next set of challenges, starting first with making a profit next quarter.

“It will be our aspiration for all quarters going forward,” he told analysts during the company’s earnings call yesterday. He also outlined additional goals for the company moving forward and dismissed negative notions about the company’s first profitable quarter in years.

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Musk said the company’s profit didn’t come at the expense of other things, such as cutting back on product development. In fact, he said he’d just approved the prototype for the Model Y and other improvements on the company’s second-generation Roadster. He confirmed the Model Y would be in production in 2020. (more…)

Daimler AG Stumbles as Third Quarter Earnings Drop

CEO Zetsche expresses optimism about fourth quarter.

by on Oct.25, 2018

Daimler AG's Dieter Zetsche expressed optimism about the fourth quarter.

Daimler Group earnings declined by 26% during the third quarter as earnings before interest and taxes dropped to 2.5 billion euros from the 3.4 billion posted in the third quarter of 2017.

Daimler’s net earnings of 1.76 billion euros were significantly below the prior-year figure of 2.23 billion euros but Daimler CEO Dieter Zetsche said the outlook for the balance of the year was encouraging.

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“The automotive industry and thus also Daimler are still in a very challenging environment. The continued high demand from our customers makes us confident for the fourth quarter,” Zetsche said. (more…)

CEO Hackett Calls Ford’s Restructuring “More of a Redesign”

Automaker plan to trim $11 billion from operating costs.

by on Oct.25, 2018

Jim Hackett, president and chief executive officer, Ford Motor Co., suggested the automaker wasn't going through a restructuring, but instead a redesign.

Ford Motor Co. executives during a conference with analysts promised more details of the company’s restructuring plan, but Ford CEO Jim Hackett also said it will not have the same kind of thrust as traditional restructuring with firing and plant closings.

“It’s not a restructuring plan, it’s a redesign plan,” Hackett told analysts. “First, we have to identify the areas that need to be fixed then we have figure out how to fix them and then execute,” he added. Ford officials said last year that they expected to trim $11 billion from the company’s operating cost, though they offered few specifics, irritating analysts, who wanted more details.

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“I think some elements wouldn’t take the full five years,” he said. Some are going to take longer,” he said.   (more…)

Losing Money, Ford Shakes Up Struggling Chinese Operations, Appoints New CEO

Former Chery exec named new CEO.

by on Oct.25, 2018

Ford's new entry-level sport-utility, the Territory, is the first of a wave of 50 new or redesigned products for China.

Despite being the world’s largest car market, China turned out to be a big money-loser for Ford Motor Co. during the third quarter, contributing $378 million in red ink and dragging down the automaker’s overall earnings for the quarter.

The Chinese market has been struggling, of late, suffering a rare slump in sales, but Ford has been especially hard hit, reflecting the company’s late entry into the market and a series of product planning errors. So, the massive Asian market is at the heart of CEO Jim Hackett plans for a broader corporate turnaround.

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“Success in China is critical as we reposition our global business for long-term success,” said Hackett, as he announced key changes for Ford’s Chinese operations. “With today’s actions, we are strengthening our commitment to the China market and reorganizing our international markets to strengthen their performance.”

(more…)

Tesla Bucks Analysts Predictions, Turns Q3 Profit

EV maker reports net income of $312 million.

by on Oct.24, 2018

Tesla's Model 3 production has been the focus of the company much of the year, and its paid off with profits.

He may not be much on meeting production deadlines, but Tesla CEO Elon Musk predicted the company would be profitable in Q3 and, well, it is.

The company reported GAAP net income of $312 million on $6 billion for its automotive business. Perhaps more importantly, it produced a better than 20% margin on the new Model 3, Musk noted.

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“It was a truly historic quarter for us,” he said during the company’s earnings conference call. “Our total cash increased by $731 million and we had free cash flow (operating cash flow less capex) of $881 million despite less than 10% of that amount coming from key working capital items.” (more…)

Ford Earnings Drop During Third Quarter

Poor results in China hurt overall numbers.

by on Oct.24, 2018

Jim Hackett, Ford president and CEO, said the company is continuing to engage in its transformation efforts.

Even though the company’s revenue increased by 3% during the third quarter, Ford Motor Co.’s income dropped by 40% during the third quarter to $1 billion, compared to $1.6 billion in the third quarter of 2017.

The income drop was primarily driven by what the company described in its earnings release as “continued challenges in China. In North America, the company delivered an 8.8% EBIT margin, supported by more than $1 billion of improved mix, thanks to the continued shift towards utilities and trucks, as well as high-end trim models.”

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“This quarter shows that our business remains very strong in key areas. We continue to make progress on our efforts to redesign Ford to be far more competitively fit, disciplined in capital allocations and nimble enough to win in a fast-changing world,” said Jim Hackett, Ford president and CEO.  (more…)

Tesla Could Have a Surprise as it Prepares for Early Earnings Announcement

Consensus calls for another loss, but a key short-seller has now gone bullish.

by on Oct.24, 2018

Does Tesla CEO Elon Musk have a surprise awaiting analysts with today's earnings announcement .

Tesla stock has surged about 14% this week, largely driven by news that a long-time critic is suddenly singing a new tune.

Activist short-seller Andrew Left has long held a negative view on the California carmaker but this week wrote that Tesla is “destroying the competition,” while adding that “warning signs” that have scared off many other investors “have proven not to be significant.”

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Left and other Tesla bulls could find out if they’re placing the right bets when the company reveals its third-quarter earnings this evening. What professional gamblers might call a significant “tell” is the fact that Tesla has decided to move up the release of its financial report which originally wasn’t expected until early next month. Instead, it will be released today at 6:30 PM EDT. (more…)

FCA Sells Magneti Marelli for $7.1B to KKR’s Calsonic Kansei

CEO Manley signs off on deal Marchionne started.

by on Oct.22, 2018

Selling off Magneti Marelli could accelerate the development of EVs and AVs FCA CEO considers critical to FCA's success.

After two years of speculation about if it and when it would do so, Fiat Chrysler Automobiles agreed to sell Magneti Marelli to KKR’s Calsonic Kansei for $7.14 billion, or 6.2 billion euros.

The new company, which is now the world’s seventh largest auto supplier, will be called Magneti Marelli CK Holdings. The new company boasts revenue of 15.2 billion euros, or $17.5 billion, the companies said.

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“This combination with Calsonic Kansei has emerged as an ideal opportunity to accelerate Magneti Marelli’s future growth,” Manley said on Monday of the FCA unit, which specializes in lighting, powertrain and high-tech electronics. (more…)

Daimler Cuts Earnings Estimates as Outlook Gets Tougher

Mercedes-Benz Cars saw earnings slip, driving new forecast.

by on Oct.19, 2018

Sales of the Mercedes-Benz GLE are off this year as are other models, causing Daimler to revise its earnings forecast downward.

Daimler AG trimmed its earnings outlook for 2018, blaming the rising cost of fines and litigation over the emissions from the company’s diesel engines and a sharp reduction in the earnings by Mercedes-Benz Cars for the expected decline.

“The main factor is an increase in expected expenses in connection with ongoing governmental proceedings and measures in various regions with regard to Mercedes-Benz diesel vehicles,” said as the company revised its financial guidance.

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“Furthermore, against the backdrop of a recent ruling by the European Court of Justice, provisions have been recognized for the potential need to take action on certain vehicles still operating with the previously used refrigerant R134a,” the company said. (more…)