Fiat Chrysler (FCAU
17.355, -1.925, -9.98%) is lower after reporting
disappointing results and lowering its guidance for the fiscal year due to the
expected impact from tariffs on imports into the United States. It was reported
this morning that former Fiat Chrysler CEO Sergio Marchionne died after
complications from shoulder surgery. Mr. Marchionne, who stepped down from his
post over the weekend, was responsible for engineering a turnaround at Fiat
Chrysler after Fiat bought Chrysler out of bankruptcy in 2009.
The automaker reported below-consensus second quarter earnings of EUR0.62 per share on a 3.8% year/year increase in revenue to EUR28.99 bln, which matched expectations.
Fiat Chrysler lowered its guidance for the fiscal year to reflect expectations for revenue between EUR115.00 bln and EUR118.00 bln after the previous forecast called for sales of about EUR125.00 bln. Adjusted EBITDA is expected between EUR7.50 bln and EUR8.00 bln, down from expectations for adjusted EBITDA of at least EUR8.70 bln.
Returning to second quarter results, worldwide shipments totaled 1.301 mln units, representing year/year growth of 6.2%. The increase was driven by higher shipments in NAFTA and Latin America. Consolidated shipments increased 9.8% to 1.250 mln.
Net profit declined 34.7% to EUR754.00 mln while adjusted net profit declined 9.2% to EUR981.00 mln.
Looking at the segment breakdown, NAFTA shipments increased 17.4% to 676,000 while revenue grew 9.1% to EUR17.54 bln. Adjusted EBIT increased 3.4% to EUR1.40 bln. U.S. market share increased 60 basis points to 13.0% due to higher retail sales. Shipment growth was mainly due to new Jeep Wrangler, Cherokee, and Compass models.
LATAM shipments grew 13.6% year/year to 150,000 while net revenue increased 4.7% to EUR2.11 bln. Market share in Brazil grew 80 basis points to 18.4% while Argentine market share improved 110 basis points to 13.7%. Shipment growth was driven by sales of the Fiat Argo and Chronos.
APAC shipments declined 33.8% to 53,000 while net revenue declined 33.2% to EUR652.00 mln. Consolidated shipments decreased 9.1% to 20,000. Lower shipments from the China joint venture and increased competition from domestic brands in China contributed to the decline in shipments.
EMEA shipments increased 0.3% to 396,000 while net revenue grew 5.3% to EUR6.33 bln. European market share for passenger cars declined 30 basis points to 6.9% while Light Commercial Vehicle share declined 70 basis points to 12.5%. Higher Jeep and Alfa Romeo shipments offset lower Fiat volumes.
Maserati shipments declined 40.9% to 7,800 while revenue declined 47.1% to EUR568.00 mln. The decline in shipments was driven by delayed wholesale and retail buying decisions due to the reduction of import duties in China starting on July 1.
Components revenue declined 1.7% to EUR2.61 bln.
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