Fiat Chrysler Q2 profits jump, outlook raised

GMT 22:59 2015 Thursday ,30 July

Arab Today, arab today Fiat Chrysler Q2 profits jump, outlook raised

Fiat Chrysler
Milan - AFP

Italian automaker Fiat Chrysler Automobiles said Thursday its second-quarter profits were up by almost 70 percent year from a year earlier, and it was raising its 2015 revenue forecast.

FCA said net profit was 333 million euros ($364 million), up sharply from 197 million euros in the same period in 2014, and it was subsequently raising its revenue outlook for this year from 108 billion euros to 110 billion euros.

The result, which the company attributed to strong sales in North America and the revival of the European market, was welcomed on the Milan Stock Exchange, where FCA shares closed 5.75 percent higher at 13.98 euros.

It was a bit of good news for the automaker, which is bracing to shell out a record $90 million for lapses in recalls of its vehicles under a deal reached with US regulators.

The company said Monday it will pay a $70-million fine to the National Highway Traffic Safety Administration, and a further $20 million on "consumer outreach activities and incentives".

Standard & Poor's later Thursday revised its outlook on Fiat Chrysler to 'positive' from 'stable', and reaffirmed the company's 'BB-" credit rating.

The ratings firm said the improved outlook meant it could raise its credit rating on FCA by one notch, to 'BB', within the next six months if the company removes all remaining "contractual restrictions" limiting the free flow of cash between FCA and it US unit, FCA US, the former Chrysler.


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