FCA’s Second-Quarter Profit Jumps 14%

Fiat Chrysler Automobiles NV’s reports a 14% gain in net profit in April-June, even though unit sales and revenue fell.

Net profit from continuing operations climbed to $793 million from $694 million in the same quarter last year. Shipments dropped 11% to 1.26 million units. Net revenue slipped 3% to €26.7 billion ($29.8 billion).

In North America, the company’s second-quarter vehicle shipments fell 12% to 596,000 units as dealers trimmed their inventories. But a richer sales mix and favorable currency exchange rates held net revenue steady at €17.6 billion ($19.6 billion). Adjusted pretax earnings climbed 12% to a record €1.6 billion ($1.7 billion)

In Europe, FCA’s combined shipments for the period slid 10% to 373,000 vehicles, and net revenue shrank 12% to €5.6 billion ($6.2 billion). Adjusted EBIT for the quarter plummeted to €22 million from €188 million last year.

Sales results in Latin America were flat, with 148,000 unit shipments and €2.1 billion ($2.3 billion) in revenue. But adjusted pretax earnings grew 9% with the help of production efficiencies and a richer sales mix.

FCA’s business in Asia Pacific saw quarterly shipments plunge 34% to 35,000 units, mainly because of shrinkage in the Chinese market. A richer sales mix pushed net revenue up 17% to €762 million ($849 million). The unit’s adjusted pretax loss narrowed to €12 million from €98 million in last year’s second quarter.