Fiat Chrysler Automobiles (NYSE:FCAU) reported second quarter results today, recording a net loss of approximately $1.25 billion in a period heavily impacted by the COVID-19 pandemic. Nevertheless, the automaker was profitable in North America for the quarter, with demand exceeding expectations and with improving retail market share in the U.S.
The quarter was also significant in that the company announced progress on completing its merger with Peugeot (OTC:PUGO.Y) maker, PSA Group. Following completion of the merger expected in the first quarter of 2021, the combined group will be renamed Stellantis.
The company said net revenue was down 56% for the quarter. Losses were about $0.78 per share, which was better than analysts estimates of a loss of $1.48 per share. Global shipments were down 63% versus the year ago quarter, mainly due to pandemic-related production outages.
The company said that all plants are now operational. Its facilities in North America, Latin America and the Asia-Pacific region are running at pre-pandemic shift levels, it said. Production in the Europe, Middle East, and Africa (EMEA) region are expected to reach that level in the third quarter.
Though it reported negative cash flow from operating activities, the company said it has liquidity of almost $21 billion, as of June 30, 2020. Fiat Chrysler CEO Mike Manley commented, "our plants are up and running, dealers are selling in showrooms and online, and we have the flexibility and financial strength to push ahead with our plans."