Skip to comments.Fiat-Chrysler profits plunge in second quarter
Posted on 07/30/2014 10:18:17 PM PDT by Impala64ssa
Fiat S.p.A. announced its second-quarter results from Turin this morning for what could be the last time, if shareholders approve the Fiat-Chrysler merger on Friday.
Worldwide shipments rose 2%, to 1.2 million, in the second quarter as revenues rose 5% to $31.2 billion
NAFTA region shipments grew 10% while Asia Pacific (APAC) region jumped 42%. This growth was partially offset by a 21% decline in Latin American (LATAM) markets. The European-Middle-East-Africa (EMEA) region shipments were essentially flat.
Revenues were up 7% in the NAFTA region and 34% in APAC while EMEA revenues fell by 3% and LATAM revenues plunged 23%.
EBIT (earnings before taxes and interest) was nearly $1.3 billion, down 10% from more than $1.4 billion in the second quarter of 2013. EBIT for the groups luxury brands soared 58% to $81.7 million. By region, APAC EBIT was up 20% to $24 million while EMEA earnings rose by $84.4 million to almost the breakeven point. Earnings in the Latin America region fell 72% to $217 million and NAFTA results were down 18% to $181 million. Fiat noted the NAFTA results were impacted by special charges and a higher cost of incentives in the second quarter.
Net profit fell nearly 55% to roughly $264 million from about $583 million in the second quarter of 2013. The decline reflects the lower EBIT as well as a $183.6 million tax charge due to U.S. earnings now being subject to deferred taxes.
Net industrial debt was reduced to $13 billion, an improvement of $402 million from the end of the first quarter of this year. The improvement was aided by $800 million in positive cash flow from operations.
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Didn’t FIAT own Chrysler some years ago?
Fiat-Chrysler is new (since 2008 bailout) were you thinking of the Renault/AMC/Chrysler deal in 1987?
I have a Dodge Ram Truck but these Fiat people are goofy green weenies..
OMG those Renaults were pigs.
I would rather drive Peugot. LOL
Could be. I seem to remember Iacocca got into some deal with a European carmaker.
Makes the Yugo look like a race car.
Umm How do you say Franch Puissie Fart Car?
I still can’t believe that they thought that the Fiat 500 was going to be flying out of the showrooms. You have to feel sorry for the dealers. Our local deal actually built an addition for it. The only thing it has going for it is weirdness; IMO no man would want to be seen driving one, except perhaps the Abarth, and that’s overpriced and unrefined.
You could catch me driving a VW camper or even a Mini Cooper they were off road mules, but a Fiat 500?
Good Lord no!
Lee Iaccoca and his good buddy Alejandro de Tomaso(owner of Maserati) inked a deal to co-develop a car.
They came up with a modified K Car known as Chrysler TC by Maserati that had an emblem of a Chrysler Pentastar with a Maserati Trident inside.
They were made in Italy and charged prices half way between a Chrysler and an entry level Maserati. Some people put it up there with Top 20 most overpriced cars ever made along with cars like Cadillac Cimarron which was a Chevy Caviler with Cadillac badges.
Madness in the Desert...
No, but the Germans did. Will the remaining Axis power, Japan, please pick up the white courtesy phone? Chrysler needs a sponsor for another round of bailouts.
No one believed the 500 would fly out of showrooms.. The CEO has publicly stated the only reason it was brought here was to help meet CAFE standards and doesn’t want to, and won’t try to sell one more than he is legally required to. There is a very interesting interview he gave that’s on youtube somewhere where he speaks at length about what he found when he took over the company and what they have done since.
We’ve had a Chrysler T and C van for two years now and like most everything about it. Despite all the bells and whistles, nothing has gone wrong yet, but just to be safe, we bought an extended warranty.
Only thing that bugs us to death is the clunky transmission. It was a recall computer issue which was supposedly fixed, but it keeps popping up on occasion. Unless/until they make improvements with the transmission, we probably wouldn’t buy another one.