Fiat Chrysler profit jumps to $99M
Fiat Chrysler Automobiles NV on Wednesday reported a profit of 92 million euros ($99 million based on March 31 exchange rate) for the first quarter, led by a recovering European market and strong sales in the U.S.
The automaker's performance was significantly up from the 2014 first quarter net loss of 173 million euros, due mainly to the company's acquisition of then-Chrysler Group LLC, now FCA US LLC.
Earnings before interest and taxes excluding one-time items (adjusted EBIT) rose 22 percent from a year ago to 800 million euros ($861 million). Revenue increased 19 percent to 26.4 billion euros ($28.4 billion), even though shipments were down 2 percent to 1.1 million vehicles.
All regions for the company, except Latin America, posted positive results. North America improved by more than 200 million euros ($223 million) to an adjusted EBIT of 601 million euros ($671 million) driven by higher volumes and improved net pricing, which was partially offset by the negative impacts of the weakened Canadian dollar and Mexican peso and increased warranty and recall costs, according to the company.
Fiat Chrysler reported European business was profitable for the second consecutive quarter while losses widened in Latin America, primarily because of expenses related to constructing and opening a more than $2 billion Jeep plant in Brazil.
The automaker confirmed its 2015 targets, including net profit of 1 billion euros to 1.2 billion euros, worldwide shipments of 4.8 million to 5 million vehicles and net revenue of 108 billion euros.
Fiat Chrysler's earnings follow Ford Motor Co. on Tuesday reporting a first quarter profit of $924 million on revenue of $33.9 billion. General Motors Co. last week reported a $945 million profit on revenue of $35.7 billion.
Fiat Chrysler shares closed down about 5.5 percent to $15.38.
First-quarter earnings broken out for FCA US, formerly Chrysler Group LLC, are expected in the coming week or so.