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FCA Rides Profit Wave as Sales Surge
Fiat Chrysler Automobiles NV has enjoyed an 80% jump in share price since October, and strong results in the second quarter of 2015 have helped its short-term momentum.
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Fiat Chrysler Automobiles NV has enjoyed an 80% jump in share price since October, and strong results in the second quarter of 2015 have helped its short-term momentum.
But analysts say the company's longer-term outlook is less certain, Reuters reports. Observers cite FCA's heavy debt, a costly €48 billion new-product plan and the likelihood that global growth in demand for new vehicles could plateau by the end of next year.
CEO Sergio Marchionne has cautioned investors not to be overly dazzled by FCA's second-quarter results. The company is the industry's only major player with a negative cash flow.
FCA is expected bolster its finances over the next 12 months through a planned spinoff of its Ferrari supercar unit this autumn and a likely sale of its Magneti Marelli parts company in 2016.
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