Fiat Chrysler shares dive after financial guidance cut

AP
Photo/Richard Drew

• Fiat Chrysler shares dove more than 10% after company
  cut guidance on 2018 financial results.
• The auto giant said it expected net revenues of between
  €115 billion and €118 billion in 2018, down from the previous
  forecast of €125 billion.
• Shares were briefly halted because of the size of the
  drop.
• The announcement came on the same day as the death of
  former CEO Sergio Marchionne.

LONDON — Shares in Fiat
Chrysler dropped sharply on Wednesday after the
automotive giant cut its guidance for both revenues and profits
in 2018.

Fiat Chrysler said it expected net revenues of between €115
billion and €118 billion in 2018, down from the previous
forecast of €125 billion. Net earnings before interest and taxes
are expected to be between €7.5 billion and €8 billion, compared
to €8.7 billion as of the last forecast.

The adjustments,
announced on the same day as the death of former CEO Sergio
Marchionne, were poorly received by investors, sending shares
down by more than 11% in early afternoon trade in Europe. The
fall was so sharp that the company’s shares listed on the Milan
Stock Exchange were briefly halted.

After the restart of trading shares have recovered slightly from
their low, but are still more than 9% down on the day, as the
chart below illustrates:

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