FCA Posts $4.1 Billion In Profits Fueled By Strong North American Sales

Fiat Chrysler Automobiles met its full-year guidance as strong results from North America and improving operations in Europe managed to offset persistent weakness in Latin America, the company said in a press release.

The world's seventh-largest carmaker, which moved its primary listing to New York in October and is due to spin off luxury unit Ferrari later this year, reported operating profit adjusted for unusual items of 3.65 billion euros ($4.1 billion).

This compares with a guidance range of between 3.6 billion-4 billion euros and an analyst forecast of 3.4 billion euros, according to Thomson Reuters SmartEstimate.

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TheSteve - 1/28/2015 12:00:34 PM

+3 Boost

The $4.1 Billion profit was also fueled, in part, by transferring Chrysler's crippling accumulated debts to the taxpayers.

Without that huge accounts payable debt on their Balance Sheet, creditors are more likely to lend you money. Also, without that huge debt, they're interest payments on their debt go way down, which reduces their monumental expenses on their Profit & Loss Statement, thereby increasing profits.

Chrysler, like GM, is boasting "profit", when in reality, taxpayers are now left holding these giga enterprises' losses in the form of increased national debt, which works out to a total of over $50,000 per man, woman, and child. Welcome to the numbers game :-(

Just as a data point, remember this has happened before when Chrysler went bankrupt the first time. Evidently, the tax breaks these giga enterprises enjoy, as well as the mountains of money US taxpayers throw at them, isn't enough to have them run profitably in a sustainable manner.

MDarringer - 1/28/2015 8:39:37 PM

-1 Boost

BOTH times Chrysler repaid in full. Know your facts @TheSleaze