Detroit Bureau on Twitter

Posts Tagged ‘Fiat Chrysler earnings’

FCA Earnings Increase Overwhelmed by Sales Reporting Scandal

Maker says profit rose 25% for second quarter.

by on Jul.27, 2016

FCA CEO Sergio Marchionne has reason to celebrate Q2 - albeit cautiously.

Fiat Chrysler Automobiles reported a 25% year-over-year increase in profits for the second quarter, despite hefty recall costs, thanks to strong demand in North America and Europe. That has led the maker to up its guidance for all of 2016.

But recalls aren’t the only problems the maker is dealing with. The trans-Atlantic automaker yesterday acknowledged misreporting its sales numbers in recent years, a problem that has reportedly led to a grand jury investigation. The problem could lead to closer scrutiny by industry analysts and investors.

Get a Free Subscription!

“Overall we had a good quarter,” Fiat Chrysler Chief Financial Officer Richard Palmer said during a conference call with analysts and reporters.

FCA earned 321 million euros, or $352 million, for the second quarter, a 25% jump from last year’s 257 million euros, or $282 million.

(more…)

Fiat Chrysler Earnings Slide 40%

Major product realignment set to take place.

by on Jan.27, 2016

Jeep was one of the few real bright spots for Fiat Chrysler last year, especially in the US.

Fiat Chrysler Automobiles fourth quarter earnings tumbled by 40%, to $2.2 billion, during the fourth quarter, and for the full-year – a decline would have been even more severe without the contribution of exotic sports carmaker Ferrari, which FCA recently spun off.

The automaker’s results were hammered by slowing global sales, especially in both Latin America, though it did finally get its Jeep brand back into contention with the opening of a new assembly plant in China. And Jeep again scored well in the U.S. where plunging oil prices have spurred a surge in demand for utility vehicles.

Trust Our Numbers!

The earnings report was released just hours before FCA CEO Sergio Marchionne was set to reveal a product shake-up designed to adjust to changing global market conditions, including the slowdown in the long-booming Chinese market. Among other things, that is likely to mean a slower ramp-up for the long-struggling Alfa Romeo brand, with more emphasis on Jeep and other truck and utility vehicle lines.

(more…)

Fiat Chrysler Latest to Beat Expectations With Q2 Earnings

Net income up despite hefty consent agreement charge.

by on Jul.30, 2015

FCA is in "execution mode," says Marchionne.

Fiat Chrysler Automobiles may have begun the third quarter on a sour note, slammed with a record fine for safety lapses, but it ended the second-quarter in fine tune, handily exceeding Wall Street earnings forecasts.

The company, officially registered in the Netherlands, earned a profit of 333 million Euros, or $364 million, even after a chargeback of $88.5 million as a result of the consent order formally announced last weekend. A year ago, FCA earned 197 million Euros, or $215 million, for the period. On a per-share basis, the maker reported earnings of $0.21 between April-June 2015, analysts surveyed by MarketWatch predicting the figure would come in around 19 cents.

News You Can Trust!

As has been the case for several years, the recovering Chrysler side of the business helped prop up the balance sheet, primarily due to strong demand – and rising prices – in North America. But FCA also saw improvements in a European market just rebounding after a long and deep recession.

(more…)

Former Chrysler Turns $2.6 Bil Profit

But margins remain razor-thin.

by on May.08, 2015

The numbers may not be as good as they first appear, leaving much work ahead for FCA CEO Sergio Marchionne and his team.

In a major turnaround, FCA US – the former Chrysler – turned a $2.6 billion profit for the first three months of this year, compared with a $690 million loss during the first quarter of 2014.

But the American side of trans-Atlantic automaker Fiat Chrysler may not have much reason to celebrate, the vast bulk of its earnings coming from tax benefits as it changed its tax status when Chrysler became a wholly owned subsidiary.

Subscribe for Free!

There were, nonetheless, some positive signs for the company which saw vehicle shipments jump 8%, to 718,000 cars, trucks and crossovers. That was largely due to strong demand for the new Jeep Cherokee and Renegade models, as well as the redesigned Chrysler 200. (more…)

Chrysler Acquisition Hammers FCA Earnings

But U.S. operations also drove revenue growth.

by on Jan.28, 2015

FCA Chief Executive Sergio Marchionne's acquisition of Chrysler carried a high cost last year.

When it comes to the American half of its newly merged company, investors will have to decide whether the glass is half empty for Fiat Chrysler Automobiles.

That’s because the cost of completing the acquisition of suburban Detroit-based Chrysler bludgeoned the trans-Atlantic maker’s earnings. But the Chrysler side also delivered a healthy 11% increase in FCA’s overall revenues.

By the Numbers!

Legally headquartered in the Netherlands, Fiat Chrysler is reporting that its 2014 net profit fell by two-thirds, to 632 million Euros, or $718 million. For 2013, the maker had a restated net of 1.9 billion Euros. For the final quarter of 2014, the maker earned 420 million Euros, down from 1.2 billion during the same period in 2013.

(more…)

Fiat Chrysler Earnings Hold Steady as Maker Prepares to Spin Off Ferrari

Investors quickly warm to news.

by on Oct.29, 2014

Sergio Marchionne may have reason to smile as investors finally begin bidding up FCA stock.

Now officially merged, Fiat Chrysler Automobiles said its third-quarter earnings were roughly in line with last year’s numbers.

Though that was essentially what analysts had anticipated, the automaker delivered a surprise by announcing it will spin off its iconic Ferrari brand – just months after CEO Sergio Marchionne appeared to indicate such a move wasn’t in the works.

You've Earned It!

The decision “will preserve the cherished Italian heritage” of Ferrari, said a statement from FCA Chairman John Elkann. Ferrari has been facing a fair bit of turmoil lately after the ouster of its long-time chief executive and its unexpectedly poor performance in the popular Formula One racing series.

(more…)

Chrysler Group Reports $690 Million Q1 Loss

Charges due to acquisition of VEBA shares put maker in red.

by on May.12, 2014

While the company posted a loss due to special charges, Chrysler's net revenue increased, in part, because of strong sales of the Jeep Cherokee.

Chrysler Group LLC today reported a net loss of $690 million for the quarter, due to special charges related to Fiat SpA’s acquisition the ownership stake in Chrysler held by the United Auto Workers VEBA.

Net revenue was $19 billion for the quarter, up 23% from $15.4 billion in the prior-year period, primarily driven by an increase in vehicle shipments, including Ram pickup trucks and the all-new Jeep Cherokee.

Subscribe and Stay on Top!

Chrysler’s modified operating profit during the first quarter was $586 million, or 3.1% of net revenue, compared with the $435 million reported in the year-ago period. The 35% increase was primarily due to higher shipments and improved mix, which was partially offset by increased vehicle costs due to vehicle content enhancements; higher advertising costs; higher depreciation and amortization costs due to new product launches; and foreign exchange effects. (more…)

FCA Reports 12% Increase in Q1 Revenue

Fiat posts net loss due to $5B VEBA buyout.

by on May.06, 2014

FCA reported a portion of its combined first quarter financial results today.

FCA reported a 12% increase in revenue in the first quarter of 2014 as it reported a trading profit of $800 million on revenue totaling $29.2 billion.

The automaker, however, reported a net loss of $400 million after special items, involving the buyout of the UAW VEBA’s stake, which wound up costing Fiat close to $5 billion. Fiat specifically lost $449 million, compared with a loss of $111 million in the same quarter in 2013.

Beyond the Headlines!

Richard Palmer, FCA’s chief financial officer, said Chrysler pre-paid everything outstanding under the VEBA Trust note by securing a new credit facility and selling senior notes. Chrysler Group, which has helped prop up its Italian partner over the past couple of years, is expected to release a separate financial report sometime next week. (more…)

Chrysler Employees Getting $2,500 Profit Sharing Checks

Maker earns $1.8 billion for 2013

by on Jan.29, 2014

Chrysler employees are expected to received profit-sharing checks of about $2,500 this year.

Chrysler salaried and hourly employees were told today they’ll be getting profit-sharing checks after the maker reported earnings of $1.8 billion in 2013.

Based on a formula that UAW workers ratified in a 2011 contract, workers should expect a maximum profit sharing check of about $2,500 before taxes. That would be the highest profit-sharing check for Chrysler hourly workers since 1999. Last year, Chrysler workers profit-sharing checks averaged $2,250 before taxes.

Your Inside Source!

While employees may be happy to get the extra cash, the amount is about a quarter of the $8,800 checks about 47,000 Ford employees are expecting to get. (more…)