Fiat Chrysler raises its 2018 financial targets image

A solid performance in North America and Europe and unexpected strong sales of its Jeep brand made Fiat Chrysler Automobiles adjust its financial targets upwards.

Fiat Chrysler Automobiles reported a 39 percent rise in the fourth-quarter adjusted operating profit to 1.64 billion euros, exceeding the analysts’ average expectations of 1.3 billion, while sales increased by 11 percent to 30.1 billion euros, also above forecasts. The fourth-quarter numbers still included luxury unit Ferrari, which completed the spin-off from FCA into its own company at the beginning of January. Overall, with Ferrari, the automaker’s operating profit was 5.3 billion euros (5.7 billion dollars) in 2015, up 40 percent compared to 1.5 billion euros in 2014, while the net profit was 377 million euros (about 410 million dollars) for last year, a decrease from 632 million euros in 2014. Automaker’s North American operations accounted for nearly 85 percent of the group’s profits last year – 4.5 billion euros (4.9 billion dollars) -, pushed by higher sales of Jeep SUVs and RAM trucks. The company recorded 395 million euros (430 million dollars) earnings in Europe, followed by Asia-Pacific at 52 million euros (57 million dollars) and Latin America down to 87 million euros (95 million dollars)

After revealing the profit numbers for 2015, Fiat Chrysler Automobiles raised the financial targets of its turnaround plan following that solid performance in North America and Europe and strong sales of its Jeep SUVs. However, the automaker reduced its profit margin forecast for Latin America because of the uncertainty of the Brazilian market. It said it now saw adjusted operating profit of 8.7-9.8 billion euros in 2018 and revenues of around 136 billion euros, up from previous forecasts of 8.3-9.4 billion and around 129 billion respectively.