Fiat Chrysler, Ford releases 2016 full-year and fourth-quarter earnings

Posted at 6:05 AM, Jan 26, 2017
and last updated 2017-01-26 08:37:09-05

Automaker Fiat Chrysler has released its 2016 full-year and fourth-quarter earnings this morning.

FCA saw net profit jump to 1.81 billion euros ($1.92 billion) last year as a more profitable model mix helped overcome a sales decline in North American markets.

That will put more money in 40,000 U.S. union workers' pockets as the company declared an average profit-sharing bonus of $5,000.

The 2016 result improves on a bare 93 million euro profit in 2015.

Fiat Chrysler Automobiles said Thursday that stronger profit margins helped its business in the U.S. and Canada despite a drop in unit sales due to the phase-out of the Chrysler 200 and the Dodge Dart. The company said savings on purchasing helped boost earnings there. Profits also jumped at its luxury Maserati brand.

Ford Motor Co. reported its first quarterly net loss in seven years due to largely to a pension accounting change.

The Dearborn, Michigan, automaker reported a fourth-quarter net loss of $783 million, compared with a $1.9 billion profit a year ago.

The loss was due largely to a $3 billion noncash adjustment of its pension obligations.

For the full year, the company still posted its second-best pretax profit ever at $10.4 billion and net income of $4.6 billion.

Ford says it lost 20 cents per share for the quarter, but excluding special items, it made a 30-cent profit. That fell just shy of Wall Street estimates. Analysts polled by FactSet expected 31 cents per share.

Quarterly revenue fell 4 percent to $38.7 billion, also missing analyst estimates.

Ford announced a $9,000 average profit sharing payment to UAW workers. 

The release of the quarterly reports by both automakers comes just two days after leaders from the Big Three met with President Trump at the White House to discuss among many topics - the idea of keeping jobs here in America and moving any overseas production back home.

General Motors is set to release their fourth-quarter and final 2016 report next month.