FCA Reports Sales, Earnings Gains But Tepid Outlook

Fiat Chrysler Automobiles NV reports fourth-quarter growth in revenue, operating results and net profit. But it also forecasts only mild gains this year.

The company’s unit wholesales dropped 6% to 1.18 million vehicles in October-December. But revenue climbed 6% to €30.6 billion ($34.8 billion). Adjusted pretax earnings advanced 7% to €2 billion ($2.3 billion). And adjust net profit jumped 49% to €1.6 billion ($1.8 billion).

For the full year, FCA’s posted gains in unit shipments (+2% to 4.84 million units), net revenue (+4% to €115.4 billion/$131 billion), adjusted pretax earnings (+3% to €7.3 billion/$8.3 billion) and adjusted net profit (+34% to €5 billion/$5.7 billion).

But the company’s share price dropped 12% today on FCA’s lackluster guidance for 2019. The company expects only a modest gain in adjusted EBIT, for example, but not enough to help the company meet its previously announced targets for 2020.

FCA’s margin slipped to 6.3% last year. For 2019, the company predicts only that its margin will be greater than 6.1%. Last June company said it was aiming for a margin of at least 7.5% by 2020. But analysts say that achievement that appears unlikely because of cooling markets in Europe and China.