Fiat Chrysler Automobiles on
Wednesday revised most of its 2018 targets down and posted
second-quarter profits 35% on the same period in 2017.
FCA confirmed its target of adjusted net profit of five
billion euros for 2018.
But net earnings have been revised down to 115-118 billion
from 125 billion.
Adjusted EBIT is now forecast to be 7.5-8 billion, down from
8.7 billion at the last estimate.
Net industrial liquidity is forecast to be three billion
euros instead of four billion.
FCA has wiped out its debt and for the first time has a net
liquidity of 500 million euros, it said in releasing its
quarterly results.
FCA posted an adjusted net profit of 981 million euros in the
second quarter, 9% down, and a net profit of 754 million euros,
35% down on the second quarter of 2017.
New CEO Mike Manley, who took over from the late Sergio
Marchionne, said it had been a tough year but there had been
some positives.
Manley told financial analysts that the second quarter of
2018 had been a tough one for the Italo-American carmaker.
"Marchionne had said it would be a difficult quarter and it
was one," said Manley, adding that "there were also positive
elements".
Manley said "we confirm all the targets we set ourselves in
the 2022 industrial plan".
He said "2018 has been a very important year, the targets had
to be revised: we are always very transparent with our
communications to the market".
FCA shares dropped 10% on the target revision and quarterly
results.
Manley said of Marchionne "it is very sad and difficult time.
Heartrending news. He was a unique man and we will miss him".
He said "I spent nine years speaking with Sergio every day
and my heart is broken....The relationship between us was based
on transparency, focusing on targets and, the most important
thing of all, on respect".
Manley said Marchionne "was a special man", asking for a
minute's silence on his debut with financial analysts in
presenting FCA's second-quarter results.
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