FCA US Profits Drop in 2014 on One-Time Expenses

DETROIT - FCA US, formerly Chrysler Group, reported Wednesday a drop in net income to $1.2 billion for 2014, compared to a net profit of $2.8 billion in 2013, reported MLive.

That came despite a rise of 15 percent in revenue to $83.1 billion.

The Auburn Hills-based subsidiary of Fiat Chrysler Automobiles NV said the drop in profit was the result of special, one-time charges. Adjusted items included a $504 million loss stemming from debt repayment on a note held by the UAW Retiree Medical Benefits Trust, and from a $672 million charge for commitments associated with the January 2014 memorandum of understanding signed with the UAW.

The company said on an adjusted basis, net income was up 31 percent to $2.4 billion.

The company's operating margin was 4.2 percent for 2014, with operating profits of $3.5 billion. FCA US' operating margin in 2013 was 4.4 percent.

Market share in the U.S. grew 100 basis points to 12.4 percent.

Last week, FCA NV, the parent company of FCA US, reported net profit of 632 million euros, or about $717.4 million, for 2014, driven in part by strong sales of the Jeep brand. The company's full-year revenues grew 11 percent to 96 billion euros, or about $109 billion.

FCA US' global vehicle sales 15 percent to 2.8 million units in 2014. Sales in the U.S. were up 16 percent.

Also on Tuesday, FCA US also released a 14 percent rise for the month of January to 145,007 units.