FCA Q2 operating profit rises 15%
UPDATED: 7/27/17 9:14 am ET – adds details
Fiat Chrysler Automobiles on Thursday reported operating profit for the second quarter increased 15 percent to $ 2.19 billion (1.87 billion euros), despite roughly flat shipments and revenue.
The world’s seventh-largest automaker reported revenue was $ 32.7 billion (27.9 billion euros), slightly below analyst estimates of $ 33.9 billion. Net income for the second quarter more than tripled to ($ 1.36 billion) 1.16 billion euros.
FCA said shipments for the quarter of 1.23 million vehicles was a 1 percent decline compared to last year, mostly due to a 14 percent drop in North American shipments being offset by increased shipments in Latin America, Europe and Asia.
The company said it reduced second-quarter fleet shipments in North America by 20,000 units, and that fleet represented 21 percent of the region’s sales in the period, down from 24 percent in the second quarter of 2016.
Maserati had an impressive quarter, quadrupling earnings before interest and taxes to $ 178 million (152 million euros), behind global shipments that nearly doubled to 13,200 from April-June.
Net industrial debt during the quarter fell to 4.2 billion euros, down from 5.1 billion euros three months earlier.
FCA confirmed its full-year guidance of net industrial debt of less than 2.5 billion euros by year end; adjusted net income of more than 3 billion euros; and net revenues of between 115-120 billion euros.
FCA’s profits continue to trail its crosstown rivals, despite varying one-time charges and other actions.
General Motors on Tuesday reported net income dropped 42 percent to $ 1.66 billion, primarily as a result of the pending sale and restructuring of its European operations.
Ford Motor Co. reported second-quarter net income of $ 2.04 billion, up 3.7 percent from the same period a year ago because of a favorable tax rate.
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