Fiat Q2 Profit Takes a Dive Due to Disappointing Results in the Americas

Fiat 500L Trekking 1 photo
Photo: Fiat
This isn't actually the best of moments for Fiat to report weak financial performances and disappointing operating profit. These second-quarter results won't go unnoticed by shareholders that will attend the Fiat-Chrysler merger meeting on August 1st.
As it happens, the Fiat Group reported a 2 percent increase in worldwide shipments to 1.2 million vehicles. Although Asia and North America fared OK in terms of automobiles moved, the brand was met with a 21 percent sales drop in Latin America, while shipments in the EMEA region (Europe, Middle East and Africa) remained flat at only 0.3 million cars.

Fiat reported €961 million ($1.28 billion) second-quarter earnings before interest in taxes (EBIT) including special times, which is slightly less than the €1.07 billion ($1.43 billion at current exchange rates) reported the previous year in the April to June period. But a more worrying results is the net profit. This indicator decreased from €435 million ($581.8 million) to just €197 million ($263.52 million).

Fortunately for Fiat S.p.A., the Fiat Group's parent company and the majority shareholder in Chrysler reported a net debt that is virtually the same as the €9.996 billion ($13.371 billion) announced at the end of March. In the difficult European market, good sales of the Fiat 500 lineup, Ducato van and various Jeep models helped Fiat to brake even… almost.

In terms of global sales, the group sold cars worth €23.3 billion ($31.16 billion) in the second quarter of 2014, which is 1 billion better than the same period last year. Double digit increases from Ferrari and Maserati in Asia were the main financial boosters. As opposed to the second quarter of 2013, these two brands helped hike revenues and EBIT by a whopping €521 million ($696.93 million). For a more detailed breakdown, then we invite you to check out the PDF document attached below.
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 Download: Fiat Group Q2 2014 Results (PDF)

About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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