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Fiat Profits Plunge 55%

CEO Marchionne points to runaway incentives costs.

by on Jul.30, 2014

FCA CEO Sergio Marchionne said the automaker needed to have great results in the next two quarters.

Fiat says its second-quarter profits plunged 55% as the maker’s U.S. partner Chrysler struggled to move old product with new incentives, while the Fiat side of the company dealt with a slowdown in South America.

Fiat, which expects to complete its takeover of the U.S. maker in October, earned a net profit of 197 million Euros, or $264 million, for the three-month period ending on June 30, compared with 435 million Euros a year before. On an EBIT – or earnings before interest and taxes – basis, the numbers dipped to 961 million Euros, or $1.3 billion, from 1.1 billion Euros a year earlier.


“We had a crappy first quarter, a halfway decent second, and we need to have outstanding quarters in the third and fourth,” Sergio Marchionne, CEO of both Fiat and Chrysler, said bluntly during a conference call. (more…)

Chrysler Earnings Quadruple in Q4

Maker Reports $1.8 billion earnings for all of 2014.

by on Jan.29, 2014

The belated launch of the 2014 Jeep Cherokee helped buoy Chrysler's Q4 earnings.

Chrysler Group more than quadrupled its earnings for the final quarter of 2014 — in part due to a huge one-time tax gain, but also due to a surge in U.S. car sales.

The smallest of the domestic makers this morning reported net income of $1.62 billion for the fourth quarter, a figure including a $962 million one-time tax benefit.  Even without that boost Chrysler would have come in 74% ahead of the final quarter of 2012.  For the full year, meanwhile, the maker earned $1.8 billion after excluding one-time gains, a 9% bounce over all of 2012.

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The full-year earnings were Chrysler’s best since it exited Chapter 11 bankruptcy protection in 2009.

“The 2013 year-end financial results reflect the commitment Chrysler Group has made to rapidly refresh our product lineup with vehicles that achieve exacting performance standards,” Sergio Marchionne, CEO of both the Chrysler Group and Fiat SpA, said in a statement.


Chrysler Wants IPO Ready by Year-End

“That horse left the barn,” says CEO Marchionne.

by on Oct.30, 2013

Fiat-Chrysler CEO Sergio Marchionne at an awards ceremony for suppliers.

After repeatedly delaying plans for a public stock offering and then suggesting Fiat might sever its ties with Chrysler if it went ahead with an IPO, the CEO of the two automakers now says he’s ready to put the process into overdrive.

“That horse left the barn,” Chief Executive Officer Sergio Marchionne told reporters and analysts during a news conference called to discuss the maker’s third-quarter earnings. “We are now bent on executing the IPO.  I hope that we can get it done by the end of this year.”

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Fiat initially acquired a 20% stake in the U.S. maker following Chrysler’s emergence from bankruptcy in mid-2009.  Through a series of steps it has increased its holdings to 58.5%, and Marchionne has repeatedly expressed Fiat’s interest in acquiring the remaining 41.5% held by a union retiree health care trust. But the two sides are battling over the worth of the United Auto Workers Union’s holdings in a Delaware court and the union is now pressing to let the market set the price with an IPO.


Chrysler Earnings Jump 16% – Give Boost to Italian Partner Fiat

But production issues, recalls, were costly problems

by on Jul.30, 2013

Fiat/Chrysler CEO Sergio Marchionne.

Despite paying a heavy price for a string of recent recalls, Chrysler Group LLC reported a 16% increase in earnings during the second quarter of 2013 and the company’s chief executive said he expects even stronger numbers during the second half of the year – though earnings are still expected to fall short of earlier expectations..

But Chrysler earnings would have been even stronger were it not for a major recall to address a Jeep safety issue as well as production shortfalls. Even so, the Detroit maker’s results were enough to provide a much-needed boost to its Italian partner Fiat which quadrupled its own net income for the second quarter despite ongoing problems in its home European market.

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The automaker posted net income of $507 million, compared to $436 million during the same quarter a year earlier. The second quarter marked Chrysler’s eighth consecutive quarter of positive net income. Net revenue increased 7% to $18 billion and Chrysler’s operating profit also increased 7% to $808 million from $755 million a year ago.


Chrysler Hot, Fiat Not

U.S. maker bails out its Italian alliance partner.

by on Jul.31, 2012

Fiat/Chrysler CEO Sergio Marchionne during a recent tour of Chrysler's Belvidere Assembly Plant.

A day after the U.S. side of the trans-Atlantic alliance reported in, Italy’s Fiat SpA delivered some unexpectedly good news in the form of a 358 million Euro, or $440 million profit for the second quarter of 2012.

But the numbers wouldn’t have been nearly as good if it weren’t for Chrysler, which saw a 141% increase in its own year-over-year adjusted net earnings.  Take away the American automaker’s contribution and Fiat would have sunk 246 million Euros, or $302 million, into the red.

A year ago, Fiat reported earnings of 1.24 billion euro, or $1.52 billion.

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The contrast between the two arms of the alliance underscores the dramatic difference between each of the maker’s home market.  While the U.S. is still a long way from reaching past peaks, demand has been growing at a double-digit pace this year and Chrysler’s worldwide shipments – largely to North America — rose 22% during the quarter to 630,000 vehicles during the April-June quarter.  Fiat has been struggling under the worsening European economy which is rapidly dragging down the Continental car market.


Chrysler More than Doubles Q2 Earnings

Make could “overshoot” profit target for 2012, says Marchionne.

by on Jul.30, 2012

Good news from Chrysler today for CEO Sergio Marchionne but things aren't likely to be so rosy when partner Fiat reports earnings on Tuesday.

Chrysler Group LLC reported a 141% improvement in its adjusted net income during the second quarter and a 23% increase in revenue over last year’s levels.

The company said preliminary second-quarter financial results, including net income of $436 million, show an $806 million improvement from the $370 million net loss in the same quarter last year, which had included a $551 million charge related to repayment of its government bailout loans.

Excluding the charge, net income increased $255 million, or 141%, period over period, as the company continues to achieve its business targets and improve sales across all brands, Chrysler said. The maker repeated earlier guidance saying it remains on track to report net earnings of $1.5 billion for all of 2012 – and an operating profit of $3 billion.

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“Our results reflect a tireless pursuit by the people of Chrysler Group to deliver the very best quality and value across our brands,” said Sergio Marchionne, Chrysler Group LLC chairman and chief executive officer, who now expects the automaker’s profits to exceed $1.5 billion for the full year. “Together, we are always striving to achieve more, to learn from the past and build upon our successes.”


“Substantial Recovery” Underway, Chrysler Claims

Despite problems, maker insists the bottom line is looking up.

by on Jul.22, 2010

Chrysler/Fiat CEO Sergio Marchionne sees a "substantial recovery" underway.

It may be struggling to reverse declining market share, quality problems and a poor public image, but Chrysler’s top executive says the bottom line is looking good and that a “substantial recovery is underway.”

With Chrysler in the black to the tune of $143 million for the first three months of the year,  and on its way to produce another profit for the April-June quarter, the U.S. maker is looking to break even before taxes this year, says CEO Sergio Marchionne.

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Meanwhile, the troubled maker’s new partner, Fiat, has outperformed industry expectations, posting a second-quarter profit of $146 million, which stands in sharp contrast to its year-earlier loss of $231 million.