Fiat Chrysler shares plunge 11% after auto giant cuts 2018 guidance — hours after death of former CEO

  • 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:

Screen Shot 2018 07 25 at 12.35.24Investing.com

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