Third-quarter earnings swing to a loss - Dodge Nitro Forum
Chrysler/Dodge/Jeep News Find out the latest scoop here!

LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 10-28-2015, 03:09 PM Thread Starter
Super Moderator
rickaren's Avatar
Join Date: Nov 2006
Location: Indiana
Posts: 22,857
Thumbs down Third-quarter earnings swing to a loss

Oct. 28, 2015

Fiat Chrysler Earnings Dented by Recalls
Third-quarter earnings swing to a loss on large charge for recall costs

MILAN— Fiat Chrysler Automobiles NV swung to a net loss in its third quarter on large charges to earnings to cover costs linked to safety recalls in North America and vehicles destroyed in an explosion in China.

The Italian-American auto maker posted a net loss for the quarter ended Sept. 30 of €299 million ($330.4 million) compared with a net profit of €188 million in the same period last year. Results included a €761 million pretax charge for the recalls. Revenue advanced 17% over a year earlier to €27.47 billion.

Fiat Chrysler also said it took a write down of €142 million in the quarter for damage to unsold vehicles sustained in the August port explosion in Tianjin, China. It said insurance should cover the costs.

The loss sent Fiat Chrysler shares off 2.2% in Milan trading on Wednesday. The stock was off as much as 6.2% in midafternoon before recouping some lost ground. The stock had gained 20% in October through Tuesday on the initial offering of shares in its luxury-car unit, Ferrari NV.

Fiat Chrysler has struggled with recalls of almost 11 million vehicles in the U.S. so far this year compared with 8.8 million in 2014. U.S. regulators in July hit it with a $105 million penalty for the poor management of recalls. U.S. authorities also forced Fiat Chrysler to take on an independent auditor to monitor its safety practices. The company last week named former U.S. Transportation Secretary Rodney Slater to that role.

The net loss compared with strong quarterly profits at General Motors Co. and Ford Motor Co. The Detroit duo, benefiting from strong U.S. demand for trucks and sport-utility vehicles, each set records for North American operating profit in the third quarter.

North American operating margins at Ford and GM topped 11% of sales in the latest period. Fiat Chrysler’s pursuit of U.S. market share hasn’t been nearly as profitable. Its operating margin in the region consistently has come in at less than half its U.S. rivals and in the most recent quarter was 4.7% of sales.

“Undoubtedly there are impressive numbers coming out of both Ford and General Motors and obviously we are envious,” Fiat Chrysler Chief Executive Sergio Marchionne said on Wednesday on a conference call with analysts.

Most of the difference can be attributed to his competitors having a product mix more heavily weighted toward higher margin trucks and large SUVs, Mr. Marchionne said.

Mr. Marchionne said Fiat Chrysler is underrepresented in the large SUV market, something he is trying to rectify with the planned introduction in 2018 of the Jeep Wagoneer.

The €20 million Fiat Chrysler earned in Europe last quarter is the fourth straight quarterly profit in the region after more than seven years of losses. The €28 million earned in Latin America is Fiat Chrysler’s first quarterly profit in the region this year.

Fiat Chrysler confirmed its 2015 profit and revenue guidance. The company expects to sell 4.8 million vehicles this year, compared with 4.6 million in 2014. Revenue is seen at €110 billion, 15% more than last year, while adjusted net profit, which doesn’t include the latest recall charges, is expected to be about €1.2 billion.

A Ferrari outside the New York Stock Exchange last week. Ferrari NV on Wednesday reported that its third-quarter profit surged as the Italian sports-car maker boosted shipments. Photo: Lucas Jackson/Reuters

Another bright spot for Fiat Chrysler is its luxury sports car unit Ferrari, which earlier Wednesday reported strong profit and revenue on the quarter.

Ferrari’s third-quarter net profit surged 62% to €94 million as the company boosted shipments. Revenue rose 9.2% to €723 million helped in part by currency fluctuations. Ferrari said it expects to sell 7,700 cars this year compared with about 7,200 last year

As of last week, 10% of Ferrari is traded on the New York Stock Exchange following Fiat Chrysler’s sale of stock in an initial public offering. Fiat Chrysler still owns 80% of Ferrari, which it plans to spin off to its shareholders early next year, while the rest is held by a son of Ferrari’s founder.


Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is online now  
Sponsored Links

  Dodge Nitro Forum > Dodge Nitro News & Polls > Chrysler/Dodge/Jeep News

Quick Reply

Register Now

In order to be able to post messages on the Dodge Nitro Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode

Similar Threads
Thread Thread Starter Forum Replies Last Post
GMAC net loss narrows in third quarter rickaren Chrysler/Dodge/Jeep News 0 11-04-2009 03:52 PM
Visteon posts wider second-quarter loss rickaren Chrysler/Dodge/Jeep News 0 08-07-2009 09:45 AM
GM posts $6 billion loss for first quarter rickaren Chrysler/Dodge/Jeep News 0 05-07-2009 10:11 AM
Honda reports fourth-quarter loss rickaren Chrysler/Dodge/Jeep News 0 04-28-2009 12:04 PM
Analysts predict first-quarter loss at Fiat rickaren Chrysler/Dodge/Jeep News 2 04-23-2009 05:25 AM

Posting Rules  
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome