NEW YORK (TheStreet) -- Fiat Chrysler Automobiles (FCAU) - Get Report stock is falling 3.55% to $7.34 in pre-market trading on Wednesday after the company reported a steep drop in quarterly net profits following the spin-off of Ferrari (RACE).
Net profits, excluding Ferrari, declined to 196 million euros for the 2015 fourth quarter, compared with 336 million euros for the same period in 2014.
The automaker reported earnings of 16 euro cents per diluted share and adjusted earnings of 74 euro cents per share including results from Ferrari, which separated from the company earlier this month. Analysts surveyed by Thomson Reuters had estimated earnings of 33 euro cents per share.
Revenue increased to 29.41 billion euros, excluding Ferrari, and jumped to 30.1 billion euros including sales from the luxury sport car manufacturer. Analysts were anticipating revenue of 29.54 billion euros for the latest quarter.
Global shipments in the last three months of 2015 were nearly flat, with 1.21 million units shipped in the fourth quarter, driven by strong sales from the Jeep brand.
Additionally, Fiat Chrysler will provide an update on its business plan during a conference call later today.