Fiat Chrysler posts lower-than-expected operating loss in second quarter

MILAN (Reuters) – Italian American automaker Fiat Chrysler posted a smaller-than-expected operating loss in the second quarter, as it managed to contain negative effects of the COVID-19 pandemic.

Fiat Chrysler (FCA) said its adjusted earnings before interest and tax (EBIT) were negative for 928 million euros ($1.10 billion) in the April-June period, versus forecast for a 1.87 billion euro loss in an analyst poll compiled by Reuters.

Chief Executive Mike Manley said the group’s plants were up and running and car dealers were selling in showrooms and online.

“We have the flexibility and financial strength to push ahead with our plans,” he said in a statement on Friday.

Milan-listed shares in FCA rose 1% at 1110 GMT, after being almost unchanged before results were released.

Despite the COVID-19 pandemic, Peugeot maker PSA , which is set to merge with FCA into Stellantis, the world’s fourth largest carmaker, delivered a profit in the first half of the year and stuck to its medium-term margin goal.

(Reporting by Giulio Piovaccari; editing by Francesca Landini)