FCA Posts Sales Gains as Adjusted Profits Slip

Fiat Chrysler Automobiles NV’s second-quarter unit sales rose 6% to 1.30 million vehicles, and net revenue grew 4% to €30 billion ($35.1 billion).

But adjusted net profit in April-June dropped 9% to €754 million ($883 million). And adjusted earnings before interest and taxes, fell 11% to €1.7 billion ($2 billion).

Still, FCA’s net industrial cash position swung from a negative €2.4 billion a year ago to a positive €456 million ($534 million), a major milestone for the company.

FCA’s North American operations hiked second-quarter unit shipments 17% to 676,000 vehicles and boosted net revenue 9% to €17.5 billion ($20.5 billion).

In Europe, the company’s vehicle shipments were flat at 396,000 units. Revenue rose 3% to €6.3 billion ($7.4 billion).

Second-quarter sales in the Asia-Pacific region plunged 34% to 53,000 units, dragging down net revenue 33% to €652 million ($763 million). Adjusted EBIT swung to a €98 million loss. FCA blames the slump on tariffs, a less favorable product mix and increased competition by domestic brands, especially in the market’s SUV segment.

FCA confirmed its earlier guidance for adjusted net profit of about €5 billion. But it dropped its forecast for net revenue from €125 billion to a range of €115 billion-€118 billion. The company also expects adjusted EBIT of no more than €8 billion compared with a previous target of at least €8.7 billion.