Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector news

Fiat Chrysler defies slowdown thanks to North America performance

07/31/2019 | 08:17am EST
FILE PHOTO: Ram Power Wagon pickup unveiled at the North American International Auto Show in Detroit, Michigan

MILAN (Reuters) - Fiat Chrysler took the market by surprise by sticking to its full-year profit guidance on Wednesday after a strong performance from its RAM pick-up brand in North America helped it to defy an industry slowdown.

A broad-based auto sales downturn has rattled the sector, forcing 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.

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

The confirmation of the outlook initially sent Milan-listed shares in the Italian-American automaker, whose other brands include Jeep, up over 4% and they were 3.33% higher by 1136 GMT.

In the second quarter the group's adjusted EBIT totalled 1.52 billion euros, versus analysts' expectations of 1.43 billion euros, according to a Reuters poll.

FCA's U.S. shipments were down 12% in the second quarter but the group said that the successful performance of its RAM brand resulted in an enhanced share of the large pick-up truck market of 27.9%, up 7 percentage points from last year.

Adjusted EBIT margin in the U.S. rose to 8.9% from 6.5% in the first quarter. FCA also cited the group's strong performance in Latin America to support its confidence in the outlook for the year.

Margins also turned positive in Europe, the Middle East and Africa, to 0.4%, after the region lost money in the previous quarter.

The company said it would continue to focus on the underperforming areas of its business in the second part of the year, including Maserati and the EMEA region.

For the EMEA region "we continue to target increased margins through the impact of restructuring actions, better management of channel mix, and targeted product strategies," FCA said.

Chief Executive Mike Manley said earlier the European region would return to profitability with margins of around 3 percent by the end of 2019.   

But new models such as full-electric 500 mini car and hybrid versions of Jeep and Maserati SUVs are not expected to hit the market before next year.

(Reporting by Giulio Piovaccari; Editing by Keith Weir)

By Giulio Piovaccari

ę Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
ASTON MARTIN LAGONDA GLOBAL HOLDINGS PLC -2.83% 1254.5 Delayed Quote.-7.65%
DAIMLER AG -1.73% 71.93 Delayed Quote.6.42%
DOW JONES AFRICA TITANS 50 INDEX -0.06% 553.37 Delayed Quote.3.09%
EXOR N.V. -2.64% 76.64 Delayed Quote.-2.94%
FORD MOTOR COMPANY -4.62% 20.65 Delayed Quote.-0.58%
NISSAN MOTOR CO LTD -1.88% 600.1 Delayed Quote.10.15%
RENAULT -1.60% 33.315 Real-time Quote.9.07%
S&P AFRICA 40 INDEX -0.01% 181.23 Delayed Quote.3.59%
STELLANTIS N.V. -3.54% 18.128 Delayed Quote.8.64%
TOWNEBANK -0.06% 31.93 Delayed Quote.1.08%
01/21STELLANTIS N : Announces 2022 Corporate Calendar - Form 6-K
01/21STELLANTIS N : Stellantis Announces 2022 Corporate Calendar
01/21Stellantis Announces 2022 Corporate Calendar
01/21Stellantis Announces 2022 Corporate Calendar
01/20Stellantis Leads $200 Million Funding Round For Battery Developer Factorial Energy
01/20Dongfeng Motor Arm Selling up to $828.5 Million Worth of Shares in Stellantis; Hong Kon..
01/20Seven Automakers in South Korea Recall 29,092 Vehicles
01/20STELLANTIS N : Stellantis Completes Investment Round in Factorial, Further Accelerating El..
01/20Dodge Updates Two-year 'Never Lift' Roadmap, Announces Launch Dates for Direct Connecti..
01/20Stellantis Celebrates First Anniversary, Speeds Transformation to Sustainable Mobility ..
More news
Analyst Recommendations on FIAT CHRYSLER AUTOMOBILES N.V.
More recommendations
Duration : Period :
Fiat Chrysler Automobiles N.V. Technical Analysis Chart | MarketScreener
Full-screen chart