Earnings: Fiat Chrysler Q2 profit rises despite lower revenues; stock gains

UK-based carmaker Fiat Chrysler Automobiles (NYSE: FCAU) reported an increase in second-quarter earnings, despite a decline in revenues. Worldwide shipments dropped 11%. The company’s stock gained about 5% at the New York Stock Exchange following the announcement.

Adjusted profit rose to EUR 0.59 per share in the second quarter from EUR 0.58 per share a year earlier. Earnings also surpassed the consensus estimates. Net profit, on an unadjusted basis, rose to EUR 793 million or EUR 0.50 per share from EUR 694 million or EUR 0.44 per share in the second quarter of 2018.

Mixed Sales

Net revenues, meanwhile, dropped 3% annually to EUR 26.74 billion. Revenues were flat in the Americas, while EMEA registered a 12% decline due to lower volumes. In the Asia Pacific, sales grew in double digits.

Also see: What Tesla executives discussed during Q2 earnings call

Worldwide combined shipments dropped 11% to about 1,157,000 units, with North America and the Asia Pacific registering declines of 12% and 34% respectively. Shipments dipped 10% in EMEA, while they were flat in Latin America.

Meanwhile, the market share for the company’s large pickups grew 7% in North America during the quarter, helped by the successful launch of the new Ram heavy-duty pickup and the steady demand for Classic Ram 1500.

Related: Fiat Chrysler Q4 2018 Earnings Conference Call Transcript

“We continue to deliver strong performance in North America and LATAM. Robust demand for our new products, along with steps we’ve taken to exert discipline across all of our businesses, have generated the momentum to achieve our full-year 2019 guidance,” said CEO Mike Manley.

Reorganization

While continuing the initiatives at cost management and to streamline product planning and inventories, the company also overhauled its leadership and structure of the joint venture in China during the quarter.

Fiat Chrysler shares gained sharply Wednesday early morning after closing the last trading session lower. The stock has lost 23% in the past twelve months and 9% since the beginning of 2019.

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