FCA sees profit growing 7% during the third-quarter image

The recently merged Fiat Chrysler Automobiles is keeping the headlines these days – with its measures to expand capital, the decision to spin off its luxury sport car manufacturer Ferrari and the financial results for the third-quarter period.

The latter news is what interests us now, while about the other stories you can read here and here. FCA announced that its operating profit for July to September period rose by 7%, marginally below expectations. The slower than previewed growth was due to shrinking earning margins in North America and the slowdown in the Latin American operations.

The automaker kept intact its full-year forecast that operating profit, without one-time expenses, would jump 14%. Fiat Chrysler Automobiles’ operating profit in the quarter was up to 926 million euros ($1.18 billion), slightly below the average consensus of eight analysts, who expected 940 million euros.

The company’s revenue climbed to 23.6 billion euros from 20.7 billion, but so did net industrial debt, which rose to 1.4 billion euros at the end of September, up from 9.7 billion at the end of June. Fiat Chrysler CEO Sergio Marchionne said back in May that huge investments in FCA, worth around 55 billion euros, would lead to the company’s sales rising 61% to 7 million units in 2018 and an EBIT of 8.7 billion to 9.8 billion euros.

Via Automotive News Europe