Fiat Chrysler profit drop 35% in Q2

Mubasher: Fiat Chrysler Automobiles (FCA) on Wednesday reported a year-on-year 35% decline in its net profit in the second quarter of 2018, reaching EUR 754 million ($880.45 million) from EUR 1.16 billion.

The auto manufacturer’s diluted earnings per share (EPS) reached EUR 0.48 in Q2-18, down from EUR 0.74 in Q2-17.

Adjusted operating profit, which excludes one-time items, dropped 11% to EUR 1.66 billion in the period between April and June, compared with EUR 1.87 billion in Q2-17.

The Italian-American company generated EUR 28.9 billion in net revenue in the three months ended last June, 4% higher than EUR 27.9 billion in the same three months last year.

The falling profit came in part due to an adjusted loss of EUR 98 million in the Asia Pacific (APAC) region during the second quarter of this year, compared with a profit of 44 million in the second quarter last year. The company cited weak demand for locally manufactured sport utility vehicles (SUV) and price hikes resulted from import tariffs.

The car maker would focus on tackling its problems in China, which came as one of CEO Mike Manely’s priorities, who took over on Saturday.

It is worth noting that Sergio Marchionne, whose health issues forced the company to remove him as its CEO, died on Wednesday at the age of 66.FCA reduced its full-year guidance for revenue and adjusted operating profit, but reaffirmed its adjusted net profit target of EUR 5 billion.

The company expects to generate a range from EUR 115 billion to EUR 118 billion from the previous target of EUR 125 billion, while operating profit is set to come between EUR 7.5 billion and EUR 8 billion, down from EUR 8.7 billion