FCA meets profit target, sees Ferrari spin-off and IPO this year image

Fiat Chrysler Automobiles, the world’s seventh-largest automaker, reported a total profit for 2014 in line with internal guidance, but failed to impress by exceeding analyst expectations.

The full-year operating profit turned to be very accurate with internal predictions, thanks mainly to sustained positive growth results seen in the core North American region, which – together with the improved status of the European unit managed to offset losses incurred in Latin America. The recently merged Fiat Chrysler Automobiles, which resulted from the union of Fiat SpA and Chrysler Group LLC has its global headquarters in London, is registered in the Netherlands and has the primary stock listing in New York. The company said its core 2014 operating profit reached a total of 3.65 billion euros – in line with its own threshold of between 3.6-4.0 billion euros. Revenue soared 11 percent to 96.1 billion euros, though the net debt also rose to 7.7 billion euros at the end of 2014 – up from 7 billion at end-2013. For the current year the company predicts core operating profit of 4.1 to 4.5 billion euros. Sales are also expected to climb from 4.6 million units last year to 4.8-5.0 million vehicles.

Additionally, FCA chief executive Sergio Marchionne said it wants to finish the proposed Ferrari spin-off and share IPO (initial public offering) in 2015, though it remains subject to regulatory approvals. “I’d like to get everything done within 2015, IPO and spin-off. If we cannot make each one this year, it’s purely for regulatory reasons,” Marchionne said on the sidelines of the financial results news conference.

Via Reuters