Fiat Chrysler earnings drop on Chrysler purchase

AP News
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Posted: Jan 28, 2015 9:01 AM

MILAN (AP) — Carmaker Fiat Chrysler reported a two-thirds drop in 2014 earnings due mainly to costs of acquiring the final stake of U.S. carmaker Chrysler.

Fiat on Wednesday reported full-year net profit of 632 million euros ($718 million), compared with a restated 1.9 billion euros in 2013. Fiat attributed the decline to a 495 million euro payment to the Chrysler union's retiree healthcare trust to complete the purchase of Chrysler. Earnings also took a hit from the devaluation of the Venezuelan currency.

Chrysler drove the group's revenue growth of 11 percent, with a 15 percent boost in North American revenue to 52 billion euros. Europe saw a small increase while Latin America suffered.

Net profit for the fourth quarter was 420 million euro, down from 1.2 billion from a year earlier.