Fiat Chrysler earnings drop on Chrysler purchase
MILAN - 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 health care 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.