Chrysler profits double last year
Automaker Fiat Chrysler saw net profit nearly double last year as a more profitable model mix helped overcome a sales decline in North American markets.
Fiat Chrysler Automobiles on Thursday said net profit for last year hit 3.5 billion euros ($4.3 billion), compared with 1.8 billion a year earlier, as the company cut its industrial debt nearly in half to 2.4 billion euros.
The carmaker delivered 4.7 million vehicles globally, in line with the previous year. U.S. sales fell 8 percent to 2.1 million vehicles due to a decline in fleet sales to the lowest level since 2001.
Starbucks sales growth disappoints investors
Starbucks reported disappointing sales growth in its most recent quarter, and shares of the coffee chain fell in after-hours trading Thursday.
But the company also said it expects to earn more this year than it had previously expected, due to the recent changes in U.S. tax law that slashed the corporate tax rate.
Looking ahead, the company said it will focus on streamlining its business, like the recent sale of its Tazo tea brand, but it didn’t provide details. It also wants to lure more customers to buy coffee and food in the afternoon, and it will focus on opening more stores in China, its fastest-growing market.
Starbucks said sales rose 2 percent at established stores worldwide during its fiscal first quarter, missing the 3 percent growth analysts expected, according to FactSet. It was also below the 3 percent growth the company posted in the same quarter a year ago.
CEO Kevin Johnson said that mugs, tumblers and other merchandise in Starbucks stores didn’t perform well during the holidays. He said the company would reconsider what merchandise it sells in the future.
Because it will spend less on taxes, Starbucks said it now expects full-year earnings between $2.48 per share and $2.53 per share, up from its previous forecast between $2.30 per share and $2.33 per share.
Caterpillar posts loss on tax charge
Caterpillar Inc. on Thursday reported a loss of $1.3 billion in its fourth quarter, driven down by a hefty charge related to tax reform.
On a per-share basis, the Deerfield, Illinois-based company said it had a loss of $2.18. Results in the latest quarter include a tax-related charge of $2.4 billion, or $3.91 per share. Excluding that, restructuring costs and other items, Caterpillar earned $2.16 per share, topping the average estimate of $1.77 per share, according to Zacks Investment Research.
The construction equipment company posted revenue growth of 35 percent to $12.9 billion, also beating Street forecasts. Six analysts surveyed by Zacks expected $12.01 billion.
“After four challenging years, many key markets improved in 2017, and our global team delivered strong results,” CEO Jim Umpleby said in a statement. “We remained focused on operational excellence and made early investments in profitable growth initiatives as we began to implement our new strategy.”
For the full year, the company earned $754 million, or $1.26 per share, on revenue of $45.46 billion. Adjusted earnings per share for 2017 totaled $6.88.
Looking ahead, Caterpillar expects 2018 adjusted earnings in the range of $8.25 to $9.25 per share. That tops the average FactSet estimate of $8.15 per share.
Tax cuts boost Union Pacific rail profits
Union Pacific reported $6.1 billion jump in fourth-quarter profit thanks to a sweeping change in U.S. tax laws, but the profit growth was a more modest $60 million when that one-time benefit is stripped away.
The Omaha, Nebraska, railroad on Thursday reported a profit of $7.28 billion, or $9.25 per share. Without the tax changes, Union Pacific estimated it made $1.2 billion, or $1.53 per share.
The results were just below the $1.54 per share that analysts surveyed by Zacks Investment Research expected.
Union Pacific said its revenue grew 5 percent to $5.45 billion in the quarter even though it only hauled 1 percent more freight.
Union Pacific CEO Lance Fritz said he expects more volume growth in 2018 that will help the railroad deliver better results.
“We are optimistic the economy will favor a number of our market segments leading to another year of positive volume growth,” Fritz said.