Fiat Profit Soars 82% with Help from Chrysler
Posted: July 31, 2013 at 3:25 am
Fiat SpA boosted net earnings to €435 million ($577 million) in the second quarter of 2013 from €239 million ($317 million) a year earlier.
Revenue grew 4% to €22.3 billion ($29.6 billion). Vehicle sales rose 5% to 1.2 million units as a 3% decline in Europe was offset by gains in all other regions.
Trading profit (earnings before interest, taxes and one-time items) climbed 9% to €1 billion ($1.3 billion) in the quarter, buoyed by cost cutting in Europe, growing profit in Asia Pacific and a €904 million ($1.2 billion) contribution from affiliate Chrysler.
Without Chrysler’s contributions, Fiat would have posted a €247 million ($328 million) net loss in the April-June period, about the same as a year earlier.
In Europe, the company narrowed its quarterly trading loss 29% to €98 million ($130 million) on a 3% revenue slide to €4.8 billion ($6.4 billion).
Latin American trading income contracted 6% year on year to €224 million ($297 million) in the second quarter. Trading profit edged up 1% to €668 million ($887 million) in North America and nearly tripled to €99 million ($131 million) in Asia Pacific.
Fiat, excluding Chrysler, shrank both its automotive debt and cash position 2% from the previous quarter to €18 billion ($23.9 billion) and €8.9 billion ($11.8 billion), respectively.
Fiat Group reiterates its 2013 outlook for revenue of as much as €92 billion ($122 billon) and net income of as much as €1.5 billion ($2 billion). But Chrysler’s reduced full-year earnings forecast caused analysts to worry that Fiat profit might slip as a result.
Delegates to the United Auto Workers union’s annual convention in Detroit have overwhelmingly approved a 31% raise for their salaried international leaders.
Ford has made an accomplishment that will never be bested, never even be tied.
Once the playground of exotic car makers, the definition of a niche vehicle has expanded to include image vehicles for mainstream OEMs, and specialist models produced on high-volume platforms.