Fiat Chrysler Automobiles (FCA) US full-year 2014 net profit fell from 2013’s US$2.8bn to $1.2bn after “unfavourable effects from infrequent items”.
Last year, the automaker made gains from one-off items, including a tax benefit of $962m.
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Adjusted net income rose 31% to $2.4bn and revenues rose 15% to $83.1bn after the company booked a $504m loss on retiree benefit funding and $672m on UAW union commitments.
Modified operating profit was up 10% to $3.5bn. FCA said it made gains from selling more vehicles at better prices, as well as cost cuts but took a hit from higher material costs as vehicle specifications were improved while warranty and recall costs also rose.
Worldwide shipments rose 12% to 2.9m vehicles with sales up 15% to 2.8m units. Chrysler said this was due to the success of the Jeep Cherokee SUV and Dodge Ram light truck lines.
FCA noted it boosted US market share to 12.4% for the year, up from 11.4% in 2013 while its slice of the Canadian pie was 15.4% versus 14.6%.
Sales outside North America increased 17% from 2013 to 363,000 vehicles, including 55,000 made by FCA US and sold as Fiat and Lancia models.
