We are huge fans of FCA and are always happy to hear when they are going very well. It was released recently that FCA profits for the first quarter were astounding! This is good news because it means that we will see more great Chrysler Cars going into production, we hope at least. Let’s take a look at why things went so well for FCA during the first quarter.
Fiat Chrysler Automobiles said Wednesday it earned a profit of $698.2 million (641 million euro) during the first quarter, a 34% gain compared with the same period a year ago, driven primarily by profits in Europe and gains by its Maserati brand.
The quarterly earnings, a record for the company since it was formed from the merger of Fiat and Chrysler, increased from $521 million (478 million euro) the automaker earned during the same period last year. “We would couch the results as a good start to 2017. We had a record performance,” in terms of pre-tax profits, said Fiat Chrysler CFO Richard Palmer.
The automaker’s profits, which were slightly better that what investors expected, are a good sign for the automaker as it faces an increasingly difficult sales environment in the U.S. and is trying to achieve the goals set out in a five-year plan in 2014.
Shares of the automaker’s stock rose $1.11, or 10.5%, to close at $11.65 for the day, its highest trading price over the past year.
Fiat Chrysler’s global revenue increased 4% to $30.2 billion (27.7 billion euro) during the first quarter compared with $28.9 billion (26.6 billion euro) for the same period last year.
The automaker’s profits work out to 47 cents per share (43 cents euro), slightly ahead of analysts, who, on average, expected the company to earn 46 cents, per share (42 cents euro), according to MarketWatch. (This information was compiled from freep.com and the FCA news conference.)
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