Fiat, Chrysler Parent Company, Reports 55% Drop in Profits
Fiat SpA, the parent company of Chrysler Group LLC, reported a 55 percent decline in second-quarter profits due to weak performances in Europe and Latin America, reported Michigan Live.
The Italian automaker said its net profit from April through June was 197 million euros ($264 million), down from 435 million euros ($583 million) for the same period in 2013.
Fiat's net revenues rose 4.7 percent to $23.3 billion euros ($31.2 billion). Revenue rose 7 percent in North America and 34 percent in the Asia Pacific region, but dropped 23 percent in Latin America and 3 percent in the Europe, Middle East and Africa.
The financial results come two days before Fiat shareholders are expected to vote on the merger of Fiat and Chrysler, which Fiat completed acquisition of in January. Chrysler and Fiat CEO Sergio Marchionne has consistently said he expects the merger to be approved, followed by shares of the merged company, Fiat Chrysler Automobiles, arriving on the New York Stock Exchange in October.
With the acquisition, FCA is the seventh-largest automaker in the world.
Fiat, which expects to ship 4.7 million vehicles in 2014, doesn't break out Chrysler's quarterly earnings. The Auburn Hills-based automaker is due to report earnings Aug. 11.
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