FCA Posts Record 2Q Profits

Fiat Chrysler Automobiles NV’s net profit zoomed to €1.2 billion ($1.4 billion) in the second quarter from €321 million in the same period last year.

Revenue was flat at €27.9 billion ($32.6 billion). Adjusted pretax earnings rose 15% to a record €1.9 billion ($2.2 billion), aided by gains in South America and strong sales from the company’s Maserati luxury car brand, where pretax earnings quadrupled on high demand for the new Levante crossover vehicle.

FCA’s worldwide unit sales dipped 1% to 1.23 million vehicles in April-June, dragged down by declining sales in the U.S.

In North America, unit sales fell 14% to 576,000 cars and trucks, reflecting the market’s fading interest in conventional sedans. Net revenue declined 8% to €16.1 billion ($18.8 billion). Adjusted EBIT slipped 2% to €1.4 billion ($1.6 billion). But a richer sales mix boosted the region’s adjusted EBIT margin to a record 8.4% from 7.9% in the second quarter of 2016.

In Europe, shipments rose 8% to 395,000 vehicles. Net revenue advanced 4% to €6.0 billion ($7 billion). Adjusted EBIT zoomed 40% to €200 million ($234 million).

In South America, vehicle shipments climbed 18% to 132,000 units. Net revenue grew 37% to €2.0 billion ($2.4 billion).

FCA affirms its previous guidance for the full year: net revenue of at least €115 billion, and adjusted EBIT greater than €7 billion and adjusted net profit more than €3 billion.