Fiat Chrysler Automobiles Made A Quarterly Loss Of 1 Billion Euros In Q2 2020
In the second quarter of 2020, Italian-American carmaker Fiat Chrysler Automobiles recorded a net loss of 1.048 billion euros in net profit of 793 million euros a year earlier and reduced revenue by 56% due to lockdowns announced due to the pandemic and reduced demand.
The automaker's quarterly revenue fell to 11.7 billion euros from 26.7 billion euros a year earlier.
Adjusted loss before interest and tax payments (EBIT) in the last quarter was 928 million euros compared to 1.527 billion euros in the second quarter of 2019. The figure was negative in all regions except North America, where a profit of 39 million euros was recorded, compared with 1.565 billion a year earlier.
The company noted that demand in the US exceeded expectations, and the concern increased its share in the US retail market in the past quarter.
FCA's global sales fell 63% in the quarter to 424,000 vehicles.
The concern noted that all its plants in North America, Latin America, and the Asia-Pacific region have returned to pre-coronavirus intensity. Production in Europe is recovering at a slower pace and should reach pre-pandemic levels by the end of September.
FCA confirmed its commitment to the merger with PSA Group. The companies expect to meet the merger target by the end of the first quarter of 2021.
FCA shares are down 0.9% in New York trading on Friday. Since the beginning of the year, the company's capitalization has decreased by 29.2% to $29.93 billion.
FCA contains Q2 COVID-19 impact with Net loss from continuing operations and Adjusted net loss both of €(1.0) billion; Adjusted EBIT €(0.9) billion. North America profitable. Industrial free cash flows €(4.9) billion. Available liquidity at June 30, 2020 of €17.5 billion excludes €4.5 billion undrawn portion of the Intesa Sanpaolo loan facility. Results and operating cash flows significantly improved in June.