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Trucks to the Rescue of Ford and Fiat Chrysler

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GMC News Earnings

Ford (NYSE: F) and Fiat Chrysler (NYSE: FCAU) reported strong profits as demand rebounded. Not only did Ford crush Wall Street expectations, but Fiat Chrysler also had record earnings.

Ford

The top and bottom beats were based on a stronger-than-expected demand during the pandemic. A long restricting has started paying off with a big jump in profit in the third quarter. Adjusted EPS were 65 cents, exceeding the expected 19 cents with automotive revenue of $34.71 billion also topping the expected $33.51 billion.

During the quarter that ended in September, the Detroit automaker earned $2.4 billion. This is an increase from $425 million for the same period a year earlier. Although it lost money overseas, Ford’s North American operations and its division that offers credit did well.

North America that made $3.18 billion on revenue of $25.3 billion led the way towards profits. The strong figures were a direct result of a stronger-than-expected demand and a rich sales mix of popular Ford trucks and SUVs, along with commercial vehicles. Ford’s new-vehicle sales were down just 5% in the third quarter as it increased the share of more-profitable trucks, vans and SUVs. This trend resulted in an increased profitability per vehicle sold.

However, Ford expects to break even or show a loss of up to $500 million in the fourth quarter before interest expenses and taxes are taken into account due to costs related to new or redesigned vehicle launches. Ford expects its figures to be hurt by higher costs and lower production due to introducing a fully redesigned F-150 pickup truck, a new Bronco and the Mustang Mach-E electric sport utility vehicle. The redesigned F-150, Mach-E and Bronco Sport are all due to reach dealer lots later this year.

Ford revised its previous guidance that had predicted an annual loss, now expecting positive full-year adjusted earnings are expected. Overall, the Blue Oval plans to invest more than $11 billion on developing EVs by 2022.

It remains unknown when Ford expects to reinstate its prized dividend which it suspended in March. Overall, despite a 15% increase in October, shares remain down by 17% this year.

Fiat Chrysler

On Wednesday, Fiat Chrysler said it earned an overall net profit of $1.414 billion , marking an increase of 773% compared to last year’s loss. Revenues in the third quarter, however, did fall 6% to $30.298 billion, although sales of profitable trucks and sport utility vehicles recovered after a sharp drop in the spring. Ram and Jeep retail sales in North America fueled Fiat Chrysler to a record $2.671 billion in pre-tax earnings and 8.8% margin in the quarter that ended in September. Ram pickup retail sales were up 15% for the quarter, and the profit-heavy truck segment in total surpassed sales of the Chevrolet Silverado for the first time this year. In the third quarter, FCA’s North America’s pre-tax earnings rose 26% year-over-year to a record $2.9 billion and 13.8% margin.

But FCA also disclosed this week it could face costs of up to $840 million to resolve a Justice Department investigation into excess diesel emissions and as a result of higher fuel economy penalties.

The Italian-American company was just joined by Honda (NYSE: HMC) in pooling its fleet with Tesla Inc.’s (NASDAQ: TSLA) to comply with emissions standards for passenger cars in Europe this year.

The results come as the European Union’s executive branch is expected to approve the Italian American automaker’s 50-50 Stellantis merger with Peugeot (OTC: PUGOY) and Citroën maker, PSA Groupe, with fourteen of 22 jurisdictions already having given their blessing. The two ancient rivals expect the merger that is expected to close during the first quarter of 2021 to bring savings of $6 billion on a yearly basis, while providing a scale for electrification.

FCA showed a strong financial position, ending the third quarter with $30 billion in cash, more than $45 billion in liquidity, and having repaid the $15 billion in credit it drew down during the first quarter.

Considering that FCA counts on only one popular pickup as opposed to its Detroit 3 counterparts, it’s quite the impressive that just at the start of last year, pickups made up less than a quarter of its vehicle sales, whereas now they make up more than a third. The ongoing success of Ram is expected to continue to add to the company’s bottom line as CEO Mike Manley confirmed plans for a battery-electric Ram only a week after General Motors Co. (NYSE: GM) debuted its electric GMC Hummer truck. The automaker plans to capitalize further on its trucks as it is also scheduled to unveil the next-generation Jeep Grand Cherokee SUV and a new three-row Jeep SUV.

Outlook

It seems that the third quarter allowed automakers to shake off the pandemic-induced losses from plant and dealership closures as U.S. automakers are reporting a strong financial performance. Record-high transaction prices were fueled by a perfect combination of an unexpectedly strong recovery of demand and low inventories due to spring’s shutdowns. Still, the companies are staying conservative in their outlook as COVID-19 cases are increasing in the United States and Europe, with Germany and France having already reinstated a second lockdown. General Motors has some large shoes to fill when it reveals its financial results on November 5th.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

EV News

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Europe’s EV market is leaving the United States in its dust. According to a recent report obtained by Bloomberg News that is scheduled to be published next week, the European Commission seeks to have at least 30 million EVs on its roads by the end of the decade. This ambitious plan would require stricter emission regulations and the auto industry to massively accelerate its transformation.

At the moment, approximately 1.4 million EVs are being driven in Europe, according to BloombergNEF. Therefore, this research is forecasting there will be 28 million plug-in hybrid and battery-electric vehicles on the road by 2028. But, it’s no secret that young and old-school automakers are gearing up for the race with December being the month that the EV pioneer Tesla (NASDAQ: TSLA) will finally be included in the S&P 500.

Germany’s EV market is poised to overtake California’s

Until the end of September, Germany registered 98,370 battery-powered cars this year, according to a report by Berlin-based Schmidt Automotive Research. California is significantly behind with 73,166, as growth has slowed this year. Meanwhile, growth in Germany has been fueled by aggressive subsidies of up to 9,000 euros per car, as reported by Bloomberg News. But this is great news for Tesla who is Berlin Gigafactory Berlin is set to open in 2021 with an annual target capacity of building 500,000 vehicles annually, which is greater than its total 2019 sales. But Tesla’s entry in the backyard of automotive legends has not gone unnoticed as Volkswagen Group’s (OTC: VWAGY) CEO Herbert Diess revealed its plans is to become, on the technological basis, competitive with Tesla. The German giant has committed last month to launch approximately 70 all-electric vehicles by 2030, of which 20 are already in production.

Hyundai revealed a modular EV-only platform

By now, automakers have come to the realization that shoving electric vehicle parts into ICE built vehicles won’t do the trick. For this reason, the industry leader, Tesla, designs its own motors. Same goes for the EV startup, Lucid Motors, who just finished the first phase of its $700 million EV factory in Arizona as it invested heavily to follow Tesla’s footprints. With that in mind, Hyundai is the latest automaker to introduce an EV-only platform. It also revealed it will produce 23 battery-electric vehicles by 2025. The new Electric-Global Modular Platform (E-GMP), which stands for “Electric-Global Modular”, will be the underpinning of Hyundai and Kia’s electric future beginning next year.

The first vehicle will be the Hyundai Ioniq 5that we’ve so far only seen in concept form. Hyundai didn’t share details on battery pack size on Wednesday, but revaled that the EVs will come with a 500 kilometres driving range.

The race is just getting started

The global electric vehicle market has evolved immensely over the past decade. But even though we’ve already seen some incredible growth across the globe, these developments and industry predictions suggest that we’ve only seen a trailer of the EV blockbuster that will take place across the globe.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

EV Updates – Europe and China Are Going Full Speed Ahead

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Europe’s EV market is leaving the United States in its dust. According to a recent report obtained by Bloomberg News that is scheduled to be published next week, the European Commission seeks to have at least 30 million EVs on its roads by the end of the decade. This ambitious plan would require stricter emission regulations and the auto industry to massively accelerate its transformation.

At the moment, approximately 1.4 million EVs are being driven in Europe, according to BloombergNEF. Therefore, this research is forecasting there will be 28 million plug-in hybrid and battery-electric vehicles on the road by 2028. But, it’s no secret that young and old-school automakers are gearing up for the race with December being the month that the EV pioneer Tesla (NASDAQ: TSLA) will finally be included in the S&P 500.

Germany’s EV market is poised to overtake California’s

Until the end of September, Germany registered 98,370 battery-powered cars this year, according to a report by Berlin-based Schmidt Automotive Research. California is significantly behind with 73,166, as growth has slowed this year. Meanwhile, growth in Germany has been fueled by aggressive subsidies of up to 9,000 euros per car, as reported by Bloomberg News. But this is great news for Tesla who is Berlin Gigafactory Berlin is set to open in 2021 with an annual target capacity of building 500,000 vehicles annually, which is greater than its total 2019 sales. But Tesla’s entry in the backyard of automotive legends has not gone unnoticed as Volkswagen Group’s (OTC: VWAGY) CEO Herbert Diess revealed its plans is to become, on the technological basis, competitive with Tesla. The German giant has committed last month to launch approximately 70 all-electric vehicles by 2030, of which 20 are already in production.

Hyundai revealed a modular EV-only platform

By now, automakers have come to the realization that shoving electric vehicle parts into ICE built vehicles won’t do the trick. For this reason, the industry leader, Tesla, designs its own motors. Same goes for the EV startup, Lucid Motors, who just finished the first phase of its $700 million EV factory in Arizona as it invested heavily to follow Tesla’s footprints. With that in mind, Hyundai is the latest automaker to introduce an EV-only platform. It also revealed it will produce 23 battery-electric vehicles by 2025. The new Electric-Global Modular Platform (E-GMP), which stands for “Electric-Global Modular”, will be the underpinning of Hyundai and Kia’s electric future beginning next year.

The first vehicle will be the Hyundai Ioniq 5that we’ve so far only seen in concept form. Hyundai didn’t share details on battery pack size on Wednesday, but revaled that the EVs will come with a 500 kilometres driving range.

The race is just getting started

The global electric vehicle market has evolved immensely over the past decade. But even though we’ve already seen some incredible growth across the globe, these developments and industry predictions suggest that we’ve only seen a trailer of the EV blockbuster that will take place across the globe.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Snowflake Is Keeping The Magic Alive

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Snowflake Inc’s (NYSE: SNOW) September magic will go down in history as the world’s hottest software IPO. When Snowflake announced its public debut, the demand for its shares was far higher than the supply. It seems that it still is. The initial share price expectation was between $75 and $85. However, the company went public at $120 a share, and it skyrocketed to an amazing $300 on its first day of trading, breaking the record and becoming the largest company to ever double its value on its opening day. This is how Snowflake’s blockbuster debut became the largest software IPO on record.

One of Snowflake’s key innovations in keeping the data storage separate from computing, allowing the businesses to get insights from the stored data. Snowflake came out with this service before Microsoft (NASDAQ: MSFT), Amazon.com (NASDAQ: AMZN), and Google (NASDAQ: GOOG) offered their equivalent products, making it easier for Snowflake to grab a part of the data warehousing market.

Snowflake’s earnings report

Snowflake’s revenues jumped 119% to $159.6 million in the fiscal third quarter which ended October 31st. Revenue growth in the previous quarter was 121%. There is an improvement in the segment of losses – in the year-ago quarter, losses were $1.92 per share, whereas this time around, the company showed a loss of $1.01 per share. The company also reported an adjusted loss of 62 cents per share. Although the earnings report pulled down the share price by 16.1%, with the closing price that day at $339.89, we cannot forget that the company went public with a share price of $120.

Microsoft’s answer

The cloud data management service market is expected to be worth around $13 billion next year. Amazon has been improving its AWS cloud unit so it’s not only Snowflake who has the answer for more and more customers trying to understand all the data and information stored in the cloud and corporate data centers. Microsoft also decided to take on Snowflake and Amazon by unveiling another product designed to enable companies to analyze and keep track of data. Azure Synapse Analytics tool is already used by companies like ABN AMRO Bank N.V. (OTC: ABN.AS), Wolters Kluwer N.V. (OTC: WKL.VI), FedEx Corporation (NYSE: FDX), and The Procter & Gamble Company (NYSE: PG).

Outlook

Snowflake’s management was satisfied with the company’s performance in its first quarter as a public company. Forecasted revenues for the quarter ending in January are within a range between $162 million and $167 million. As many businesses are increasingly shifting their activities to the cloud, the demand for warehousing solutions, like Snowflake’s, will stay high, and it is safe to say that more growth is ahead of us. Having in mind that the demand is expected to increase, the cloud data management service market should follow suit. Therefore, Snowflake’s expectation to generate revenues of $540 million in fiscal 2021 seems doable.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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