Fiat Chrysler raises outlook as Q2 profits jump 70 percent

Net profit rose 69% to €333 million ($366 million) in the second quarter compared with €197 million in the same period previous year.


Net revenues for the quarter were 29.2 billion euros, an increase of 25% from 23.3 billion euros past year.

The company said it had improved its margin in North America to 7.7 percent in the second quarter, up from 4.9 percent during the same quarter of 2014.

The strong results come at a time that company faces pressure from federal safety regulators in the U.S. over its handling of recalls. It is expected that Adjusted EBIT equal to or in excess of 4.5 billion euros, compared to earlier outlook of 4.1 billion euros to 4.5 billion euros range. The stock has risen 44 percent this year, valuing the company at 17.1 billion euros.

Fiat Chrysler says 57,000 2009-2011 Ram 1500 and Dakota pickups and 2009 Aspen and Durango SUVs are eligible, as are 94,000 2008-2012 heavy duty Ram pickups and 24,000 2008-2012 Ram Chassis Cab trucks.

In an consent agreement with the National Highway Traffic Safety Administration announced last weekend, FCA was assessed a record $105 million penalty for recall problems including delays in notifying customers, distributing parts and telling NHTSA of problems. Converted to United States dollars, the company made $US0.21 a share, surpassing an analyst expectation of $US0.19.

“What we have not wavered on is the development of both powertrains and basic (vehicle) architectures”, he said. They will get fair market value – plus a 10 percent premium under the settlement.


Fiat Chrysler is planning a public listing of a 10 percent share in the luxury sportscar maker Ferrari in the fourth quarter, an effort to raise capital to fund its business plan. Marchionne also has been vocal about the need for consolidation in the industry, but hasn’t yet found a partner.

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