Fiat Chrysler (FCAU 11.89, -0.01) is little changed in pre-market after reporting mixed results for the second quarter.
The automaker reported above-consensus second quarter earnings of EUR0.69 per share on a 0.1% year-over-year uptick in revenue to EUR27.93 billion, which was shy of expectations.
Group margin increased by 90 basis points to 6.7%, representing a record. Margins at Maserati spiked to 14.2% from 6.2%.
Adjusted EBIT increased 15.0% to EUR1.87 billion, which was a second quarter record.
NAFTA shipments declined 13.5% to 576,000 while net revenue fell 8.0% to EUR16.08 billion. Segment adjusted EBITDA declined 1.7% to EUR1.35 billion. U.S. market share declined 30 basis points year-over-year to 12.4%, but was in line with the first quarter. The decline in shipments was due to planned capacity realignment and the transition to a new Jeep Compass. Net revenue fell as lower shipments outweighed favorable vehicle mix and positive currency effects.
LATAM shipments rose 17.9% to 132,000 while net revenue increased 36.9% to EUR2.01 billion. Higher shipments were fueled by demand for the new Jeep Compass.
APAC combined shipments jumped 42.9% to 80,000 while consolidated shipments declined 4.4% to 22,000. The increase was driven by a ramp-up of production of Jeep vehicles through a joint venture in China. Net revenue grew 2.0% to EUR976.00 million. Adjusted EBIT increased 4.8% to EUR44.00 million. Favorable vehicle mix and stabilizing consolidated shipments drove the increase.
EMEA shipments grew 7.6% to 395,000 while net revenue increased 4.2% to EUR6.01 billion. Adjusted EBIT grew nearly 40.0% to EUR200 million. European market share for passenger cars increased by 40 basis points to 7.2%, but declined 20 basis points to 29.0% in Italy. Market share for light commercial vehicles increased 20 basis points to 13.2%, but declined by 280 basis points to 43.9% in Italy. Shipment growth was fueled by Fiat Tipo and Alfa Romeo Giulia and Stelvio SUV.
Maserati shipments increased 91.3% to 13,200 while net revenue spiked 85.5% to EUR1.07 billion. Adjusted EBIT surged 322.2% to EUR152.00 million. The sharp growth was due to higher shipments of the new Maserati Levante SUV. Shipments grew in all regions with European shipments rising 93.0%, North American shipments increasing 50.0%, and shipments to China surging 146.0%.
Despite missing second quarter revenue expectations, Fiat Chrysler expects to make up the shortfall in the second half of the year. The company reaffirmed its guidance for the full year, expecting revenue between EUR115.00 billion and EUR120.00 billion. Earnings before interest, taxes, depreciation, and amortization are expected to exceed EUR7.00 billion while adjusted net profit is expected to be greater than EUR3.00 billion.