Fiat Chrysler posts $690M Q1 loss
 

Filed under: Chrysler, Earnings/Financials, Fiat

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If there is one thing that should be remembered when looking at quarterly and annual earnings, it's that the headline numbers rarely tell the whole story when it comes to an automaker's health. Chrysler's first-quarter earnings are just such an example.

Yes, the Auburn Hills-based manufacturer lost $690 million, which is quite a large sum of money. The reasons for the loss, according to Chrysler, were "Unfavorable infrequent items," which includes a $504 million payment to rid itself of the debts it took on for prepaying the UAW's VEBA healthcare trust. Chrysler was also hit with a $672 million charge to the UAW, which was part of a deal that allowed Fiat to purchase the remaining shares of Chrysler owned by the VEBA.

Ignoring those one-time deals, the first quarter was quite a successful one for Chrysler. It would have made $486 million if you erased the merger costs, which would have been a year-over-year increase of $320 million. Even more promising is the fact that Chrysler snagged the largest increase in market share of any automaker during Q1 at 1.1 percent, bringing its overall share to 12.7 percent of the US market. Chrysler saw a 30-percent improvement in sales of trucks and SUVs, along with an 11-percent increase in year-over-year sales and a 23-percent increase in revenue, to $19 billion.

Overall, not a bad first quarter for Chrysler, provided you ignore its one-time costs. With those merger-related charges settled, it should be pretty interesting to see how Chrysler does in the rest of 2014. Scroll down for the full set of details on Chrysler's Q1 financials.Continue reading Fiat Chrysler posts $690M Q1 loss

Fiat Chrysler posts $690M Q1 loss originally appeared on Autoblog on Mon, 12 May 2014 14:30:00 EST. Please see our terms for use of feeds.



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