Some are wondering where the returns are at FCA. They forget the deplorable shape Chrysler was in when Fiat took it over as part of a bankruptcy deal in 2009 with the U.S. government.
Fiat Chrysler Automobiles, FCA, made €92 million (~$101 m) during Q1 of 2014 compared to a loss of €190 million ($173 million) in the year earlier period. Strong sales at Chrysler and the second straight quarter of a profitably Europe contributed to the positive performance coming from the shipment of 1,095,000 vehicles globally.
This translated to earnings per share of 52 cents compared with a loss of $1.55 per share during Q1 of 2014. Analysts completely missed the mark, expecting only 7 cents per share.
In total, FCA earned €603 million ($663 m) before taxes in North America compared with a loss of € 17 million ($128.7 m) for the same period last year. Jeep’s strong performance continued with worldwide shipments up 11% and sales up 22%.
FCA confirmed its previous guidance whereby it would sell 4.8 million to 5 million cars and trucks with a total profit in a range of $1.1 billion to $1.2 billion.
FCA said that profit margins would increase during 2015. “We feel confident that a 7% profit margin rate in the fourth quarter is absolutely doable,” said CFO Richard Palmer.
Palmer said the company’s plans to complete an initial public offering of 10% of Ferrari as in the third quarter of this year has now been postponed until January. This financial move allows Ferrari healthy profits (Q1 €100 million on revenues of €621 or %16) to be incorporated in FCA’s 2015 year-end results.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
