Yahoo Finance What Factors Drove Fiat Chrysler’s Revenues in 1Q16?
Fiat Chrysler's 1Q16 Earnings: Could It Meet Its 2016 Guidance?
Fiat Chrysler’s revenues
Currently, Fiat Chrysler Automobiles (FCAU) is the seventh-largest automaker in the world. In 1Q16, the company reported revenues of 26.6 billion euros. This reflects a marginal increase of 0.7% from 26.4 billion euros in the corresponding quarter of the previous year. Moreover, Fiat Chrysler’s revenues fell short of analysts’ estimates of 27.1 billion euros in the first quarter of 2016. In this part, we’ll take a closer look at these revenues to find out what factors drove them.
Stagnation in global sales
Fiat Chrysler’s 1Q16 global shipments stood at 1.08 million vehicle units, marginally lower than the 1.09 million units shipped in 1Q15. This visible stagnation in global shipments was primarily due to the company’s worsening performance in Latin America and the Asia-Pacific region. Let’s take a look at FCAU’s performance in North America.
Strong Jeep and Ram brand in North America
In 1Q16, the company reported 17.1 billion euros in revenues from North America, with a 6% year-over-year increase. During the quarter, Fiat Chrysler shipped 0.65 million vehicles to North America, 3% more than the 0.63 million vehicles shipped in the first quarter of fiscal 2015.
These higher shipments and revenues from the region were mainly driven by the higher demand of mid-size and full-size trucks, including pickup and utility vehicles. In these categories, the shipments of the company’s Jeep and Ram brand increased.
With this, the company =reported a 50-basis-point increase in its market share in the North American market, to 12.9% for the quarter from 12.4% a year ago. North America still remains the single largest geographical market for Fiat Chrysler, amounting to 60% of the total shipments in 1Q16.
US automobile (FXD) sales were at their highest historical level last year. Additionally, in the last couple of years, General Motors (GM), Ford Motor Company (F), and Toyota (TM) have also reported more of a demand for their sports utility vehicles and trucks than small cars in North America. Continue to the next part of this series to read about how Fiat Chrysler Automobiles’ revenues shaped up outside North America.
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