Fiat Chrysler posts first-quarter net loss, trading profit stable
Fiat Chrysler ended the first quarter of the year with a net loss, hit by one-off charges linked to a deal to fully acquire Chrysler and by currency fluctuations.
The net loss for the quarter was 319 million euros ($444 million) compared with a net profit of 31 million euros a year earlier, the company said in a statement on Tuesday. Excluding one-time items such as the devaluation of the Venezuelan bolivar, net profit was 71 million euros.
Trading profit, or earnings before interest, taxes and one-time items, fell to 622 million euros from 631 million euros a year earlier. Net industrial debt climbed to 10 billion euros at the end of March from 7 billion euros three months earlier.
The company's North American operations recorded an Ebit loss of 117 million euros compared with a profit of 400 million euros a year ago due to a 491 million-euro charge stemming from the Chrysler deal. The Ebit loss in Europe narrowed to 72 million euros from 107 million euros.
The manufacturer’s global revenue jumped 11 percent to 22.1 billion euros, as deliveries climbed 9.1 percent to 1.11 million vehicles.
Fiat stuck to its goal to increase trading profit to 3.6 billion euros to 4 billion euros in 2014 from 3.39 billion euros last year.
Fiat outlined targets on Tuesday to boost annual deliveries to 7 million vehicles in 2018 from 4.4 million now following its merger with Chrysler.
The company also said it expects to increase its net profit fivefold by 2018 to around 5 billion euros ($6.97 billion), boosted by a major increase in sales of its Jeep SUVs and an overhaul of its Alfa Romeo brand.
In a 2014-2018 business plan, the carmaker said it expects revenue to rise to around 132 billion euros ($183.92 billion) by 2018 from 86.8 billion euros last year.
Net industrial debt is seen peaking at around 11 billion euros in 2015, up from an adjusted 9.7 billion at the end of 2013, while total capital expenditure and r&d spending over the 2014-18 period is forecast at around 48 billion euros, averaging around 9.5 billion euros per year.
The company said no capital increases and no dividends are included in the 2014-18 plan. The company plans to complete the move of its primary listing to the New York Stock Exchange by the end of this year, and plans to achieve investment grade credit metrics by 2017.
Reuters and Bloomberg contributed to this reportContact Automotive News