FCA’s Profits Surge

Fiat Chrysler Automobiles NV reports its net profit last year jumped to €1.8 billion ($1.9 billion) from €93 million in 2015. Revenue was flat at €111 billion ($119 billion).

The company predicts an adjusted net profit this year greater than €3 billion, with revenue between €115 billion and €120 billion. The carmaker expects to cut its debt from €4.6 billion ($4.9 billion) at the beginning of 2017 to less than €2.5 billion ($2.7 billion) by the end of December.

FCA’s unadjusted profit in the fourth quarter more than doubled to €409 million ($437 million). Revenue rose 1% to €29.7 billion ($31.8 billion). Adjusted earnings before interest and taxes advanced 1% to €1.5 billion ($1.7 billion) for the quarter and 26% to €6.1 billion ($6.5 billion) for the year.

The company reports its worldwide vehicle shipments, including those by joint ventures, were flat at 4.72 million units after a 2% decline to 1.23 million units in the fourth quarter.

In North America, FCA’s annual revenue declined 1% to €69 billion ($73.7 billion) as shipments fell 5% to 2.59 million units. Net revenue in the region dipped 1% to €69.1 billion ($73.8 billion). Adjusted EBIT rose 15% to €5.1 billion ($5.5 billion).

In Europe, FCA’s full-year vehicle shipments climbed 14% to 1.31 million units. Adjusted EBIT surged to €540 million from €213 million in 2015.

In Latin America, annual sales dropped 18% to 456,000 units. But a richer product mix pushed adjusted EBIT to €5 million, reversing a loss of €87 million in 2015.

In Asia Pacific, FCA’s combined vehicle shipments jumped 23% to 233,000 units. Adjusted EBIT doubled to €105 million.