THE BACKGROUND: Fiat SpA and Chrysler Group, which merged earlier this month, announced Wednesday that their new company will be called Fiat Chrysler Automobiles NV, or FCA. They eventually plan to release one earnings statement in U.S. dollars, but on Wednesday they reported separate fourth quarter and full year earnings.
FIAT: Fiat posted full-year net income of 2 billion euros ($2.7 billion) in 2013, more than double its earnings from the prior year. Without special items, including a 1.5 billion euro ($2.0 billion) gain from deferred tax assets, Fiat earned 943 million euros ($1.29 billion). It would have lost 911 million euros ($1.25 billion) without profits from Chrysler. Revenue rose 3 per cent to 87 billion euros ($119 billion). Worldwide vehicle shipments grew 3 per cent to 4.4 million. In the fourth quarter, Fiat’s net income was 1.3 billion euros ($1.8 billion), up from 224 million euros ($306 million) a year ago. But excluding a tax credit, net income was 252 million euros ($344 million). Without Chrysler, Fiat would have lost 235 million euros ($321 million) in the quarter. Fourth quarter revenue rose 10 per cent to 24 billion euros ($32.8 billion). Worldwide shipments rose 8 per cent to 1.2 million.
CHRYSLER: For the full year, Chrysler’s net income was $2.8 billion, its best performance since leaving bankruptcy in 2009. Without one-time items, including a tax credit, the company earned $1.8 billion. Revenue increased 10 per cent to $72.1 billion. Worldwide shipments rose 6 per cent to 2.6 million. In the fourth quarter, Chrysler’s net income was $1.6 billion, or $659 million without a tax benefit and other one-time items. Revenue increased 24 per cent to $21.1 billion. Worldwide shipments were up 20 per cent to 736,000.
GUIDANCE: Fiat expects its full-year net income to fall this year to between 600 million euros and 800 million euros, with revenue rising to around 93 billion euros. Chrysler expects its net income to fall to between $2.3 billion and $2.5 billion, with revenue rising to around $80 billion.
