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FCA Posts Third-Quarter Loss on Regulatory Penalties
Fiat Chrysler Automobiles NV reports a 17% hike in revenue to €27.5 billion ($30.5 billion) in the third quarter.
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Fiat Chrysler Automobiles NV reports a 17% hike in revenue to €27.5 billion ($30.5 billion) in the third quarter. But recalls and regulatory fines resulted in a net loss of €299 million ($331 million).
The company’s unit sales in July-September slipped 1% to 1.11 million units, as gains in North America (+12% to 685,000 units) and Europe (+15% to 250,000 vehicles) were offset by losses in Latin America (-31% to 140,000) and Asia Pacific (-45% to 30,000).
FCA’s adjusted earnings before interest and taxes grew 35% to €1.3 billion ($1.4 billion). The company booked €943 million ($1 billion) in special charges, 80% of them for recall expenses that included fines by the U.S. for its laggardly performance in 23 recent callbacks involving 11 million vehicles.
The company’s Ferrari unit posted third-quarter revenue of €723 million ($780 million), up 9%. The unit’s adjusted EBIT jumped 35% to €140 million ($155 million).
FCA reiterates its full-year targets of selling about 4.8 million vehicles, generating revenue in excess of €110 billion and achieving an adjusted EBIT of about €4.5 billion.
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