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.
