StaffAllpar HomeMore NewsCarsTrucksUpcomingRepairsTest drives

Fiat-Chrysler profits plunge in second quarter

by Bill Cawthon on

Fiat S.p.A. announced its second-quarter results from Turin this morning for what could be the last time, if shareholders approve the Fiat-Chrysler merger on Friday.

Worldwide shipments rose 2%, to 1.2 million, in the second quarter as revenues rose 5% to $31.2 billion

NAFTA region shipments grew 10% while Asia Pacific (APAC) region jumped 42%. This growth was partially offset by a 21% decline in Latin American (LATAM) markets. The European-Middle-East-Africa (EMEA) region shipments were essentially flat.

Revenues were up 7% in the NAFTA region and 34% in APAC while EMEA revenues fell by 3% and LATAM revenues plunged 23%.

EBIT (earnings before taxes and interest) was nearly $1.3 billion, down 10% from more than $1.4 billion in the second quarter of 2013. EBIT for the group’s luxury brands soared 58% to $81.7 million. By region, APAC EBIT was up 20% to $24 million while EMEA earnings rose by $84.4 million to almost the breakeven point. Earnings in the Latin America region fell 72% to $217 million and NAFTA results were down 18% to $181 million. Fiat noted the NAFTA results were impacted by special charges and a higher cost of incentives in the second quarter.

Net profit fell nearly 55% to roughly $264 million from about $583 million in the second quarter of 2013. The decline reflects the lower EBIT as well as a $183.6 million tax charge due to U.S. earnings now being subject to deferred taxes.

Net industrial debt was reduced to $13 billion, an improvement of $402 million from the end of the first quarter of this year. The improvement was aided by $800 million in positive cash flow from operations.

Total available liquidity increased to $29.2 billion, from $27.9 billion at the end of first quarter of 2014.

Fiat S.p.A. confirmed full-year guidance based on the Business Plan presented in May.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

Know & Go screens
Employees created new FCA US app—first available to Ram TRX

Newest Ram Built to Serve models honor the U.S. Air Force

Former Ram chief engineer Michael J. Cairns

More Mopar Car
and Truck News

Some popular Allpar pages

Dodge Demon

2018 Wrangler JL

Staff details/contactsTerms of ServiceInformation is presented to the best of our knowledge. Plans change and sometimes mistakes are made. Decisions or purchases made based on this site's verbiage or images are done at the reader's own risk. Also see the Allpar News archives, 1997-2008 • Copyright © VerticalScope Inc. All rights reserved. • Mopar, Dodge, Jeep, Chrysler, HEMI, and certain other names are trademarks of Fiat Chrysler Automobiles.