Fiat Chrysler posts strong North America performance in Q2, maintains guidance


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Fiat Chrysler Automobiles stuck to its full-year profit guidance on Wednesday after it posted record results in North America, helping the automaker defy an industry slowdown.

In its first earnings release since a failed attempt to merge with France’s Renault, FCA said its was confident its adjusted earnings would top last year’s 6.7 billion euros ($7.5 billion).

North American adjusted earnings gained 12 percent to 1.56 billion euros ($1.74 billion) while revenue was flat at 17.64 billion euros ($19.66 billion). Vehicle deliveries fell 12 percent to 596,000 units, but the company’s truck-dominated product mix improved and profit margins rose nearly an entire percentage point to 8.9 percent. 

FCA shares surged nearly 5 percent in premarket trading in New York. 

The automaker’s overall adjusted earnings were flat at 1.52 million euros ($1.69 billion) in the second quarter, versus analysts’ expectations of 1.43 billion euros, according to a Reuters poll. 

The company also delivered an improved performance in Latin America, but results for the rest of the world remained flat. 

In Europe, it posted adjusted earnings of 22 million euros ($24 million), down 88 percent from the same quarter last year. Revenue in Europe fell 12 percent to 5.56 billion euros ($6.2 billion). 

A broad-based auto sales downturn has rattled the sector, pushing FCA’s competitors — including Renault, Daimler and Aston Martin — to cut their sales forecasts after second-quarter results, while U.S. carmaker Ford gave a weaker-than-expected 2019 profit outlook.

Japan’s Nissan, a long term partner of Renault, said it would cut 12,500 jobs by 2023 after its earnings collapsed.

Philip Nussel of Automotive News and Reuters contributed to this report.

 




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