Fiat Chrysler earns $239 million in Q3
Fiat Chrysler Automobiles NV on Wednesday reported that its first quarterly earnings since listing on the New York Stock Exchange were in line with the third-quarter of 2013.
The world’s seventh-largest automaker earned 188 million euros ($239.5 million) from July through September, 1 million euros ($1.27 million) less than the same time period a year ago.
Profits in North American and Asia-Pacific drove FCA. In North America, which is primarily Chrysler Group, the company earned 549 million euros ($700 million) before interest and taxes, a 13 million euro increase ($17 million). In Asia-Pacific, the company earned 169 million euros ($215 million), up 70 million euros ($89.2 million) from a year ago.
FCA CEO Sergio Marchionne called the earnings “a decent set of results” that puts the newly-merged automaker on track to deliver on its full-year targets, including a profit of 600 million euros ($763 million) to 800 million euros ($1.2 billion) in 2014
“It’s a big day,” he told media and analysts during a call Wednesday morning. “I think today we resolved a number of issues that we have been facing here at FCA for a number of years.”
On Wednesday, FCA also announced it would split off the Ferrari brand into a separate company to raise capital for an ambitious five-year growth plan and release up to 100 million common shares of the company to the public by the end of 2014.
FCA officially formed earlier this month following Italian automaker Fiat SpA merging into the company on Oct. 12. A day later, the company listed on the NYSE under the symbol “FCAU.”
FCA shares skyrocketed 17 percent Wednesday morning to as high as $11.56 per share. As of noon, shares had leveled out to about $11. The stock closed Tuesday at $9.72.
FCA revenues for the third quarter were up 14 percent to 23.6 billion euros ($30 billion).
Earnings from July through August for FCA were hindered by losses in Europe that were nearly cut in half from last year but still in the red at a loss of 63 million euros ($80.4 million) and a 118-million euro ($150.5 million) decrease to 51 million euros ($65 million) in Latin America.
Worldwide shipments were 1.1 million units, a 10 percent increase driven by strong sales in North America.