Fiat Chrysler Automobiles (FCA) has swung to profit boosted by stronger sales in North America. However, the profit figure was dented by loss in South America.
The company said that first quarter net profit was EUR92m, up EUR265m from the net loss of EUR173m posted in the same quarter of last year.
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Worldwide shipments for FCA in Q1 were 1.1m units, 2% lower than Q1 2014, reflecting strong performance in NAFTA and weak market conditions in South America (where FCA also took a hit on launch costs for a big new plant).
Jeep’s positive performance continued with worldwide shipments up 11% and sales up 22%.
FCA Q1 revenues rose 1% percent to EUR26.4bn.
FCA said it European operations also swung into an operating profit in the first quarter, boosted by demand for its recently introduced Jeep Renegade and Fiat 500X models.
NAFTA profit improved by over EUR200m to EUR601m driven by higher volumes and improved net pricing, which was partially offset by the negative impacts of the weakened Canadian Dollar and Mexican Peso and increased warranty and recall costs. NAFTA margins improved to 3.7% from 3.2%.
Adjusted EBIT for LATAM decreased by EUR109m to -EUR65m, reflecting lower volumes due to the market conditions and Pernambuco start-up costs.
FCA said that excluding the launch costs for the new Pernambuco plant LATAM would have been at break-even for the quarter.
2015 outlook
The FCA Group also confirmed its full-year guidance:
- Worldwide shipments in 4.8m to 5.0m unit range;
- Net revenues of around EUR108bn;
- Adjusted EBIT in EUR4.1bn to EUR4.5bn range;
- Net Profit in EUR1.0bn to EUR1.2bn range
