Fiat Chrysler profits up as focus on premium brands pays off
MILAN (AP) —
Fiat Chrysler Automobiles' second-quarter profits soared on higher Maserati sales as the carmaker's strategy to ramp up premium brands turned in results.
The Italian-American carmaker reported Thursday net profit of 1.15 billion euros ($1.35 billion) in the three months ended June 30, up from 321 million euros a year earlier.
Despite the boost, FCA maintained full-year earnings guidance of 3 billion euros on revenues of 115 billion euros to 120 billion euros.
Maserati sales nearly doubled to 13,200 units, driven by the new Levante sport utility vehicle, boosting margins to 14.2 percent. The upscale brand's earnings were 152 million euros, from just 36 million a year earlier.
U.S. revenues dropped as the carmaker retools production as part of a shift from passenger cars. International revenues, meanwhile, rose across the board.