Fiat Chrysler Automobiles NV, the third largest US automaker and the seventh biggest in the world, has announced an upgrade to its annual profit forecast after posting better than previewed second quarter financial results.
FCA has managed to showcase its two core strengths once more – the underlying performance of the North American unit and the continued record sales of the Jeep brand. According to a statement on Thursday, adjusted earnings before interest and tax (EBIT) for the second quarter went up from 968 million euros during the same period last year to 1.53 billion euros ($1.67 billion) and net income jumped 69 percent to 333 million euros. The revenue was also performing spectacularly, soaring 25 percent to 29.2 billion euros, and even the company’s massive net industrial debt went down a little – from 8.6 billion at the end of March to 8 billion euros at the end of June. FCA went on to say its full-year EBIT earnings have a target of 4.5 billion euros or more, with the earlier provision for the guidance standing at 4.1 billion euros to 4.5 billion.
The very positive forecast and profit jump have now acted as a relief for chief executive officer Sergio Marchionne after the automaker had to accept the record fine imposed by the US auto regulator NHTSA for its botched safety campaigns. Jeep, the group’s global ambassador brand, is continuing its great performance both in Europe and North America, so the automaker looks prepared to continue its strategy to reestablish the Alfa Romeo brand and expand the luxury Maserati marquee – even with issues such as the economic slump in Brazil and the company’s massive debt burden.
Via Automotive News Europe