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FCA’s Profits Surge on Demand for Trucks, SUVs, Luxury Cars
A richer sales mix of more profitable models hiked fourth quarter and full-year earnings to record highs for Fiat Chrysler Automobiles NV last year.
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A richer sales mix of more profitable models hiked fourth quarter and full-year earnings to record highs for Fiat Chrysler Automobiles NV last year.
The combination offset flat unit sales for October-December (1.16 million vehicles) and a 3% dip in revenue to €28.9 billion ($36.1 billion).
Fourth-quarter pretax earnings climbed 22% to €1.9 billion ($2.4 billion). Adjusted net profit doubled to €1.1 billion ($1.4 billion).
Full-year results were similarly impressive. Adjusted net profit grew 50% to €3.8 billion ($4.7 billion). Revenue and consolidated unit shipments were flat at €111 billion ($138 billion) and 4.42 million vehicles, respectively. Adjusted EBIT for 2017 rose 16% to €7.1 billion ($8.8 billion).
FCA says it will distribute profit-sharing checks averaging $5,500 to its United Auto Workers union members in the U.S. Those workers also are among those to receive $2,000 bonuses tied to the reduction in U.S. corporate taxes.
Last year FCA slashed its net industrial debt by nearly half to €2.4 billion ($3 billion). CEO Sergio Marchionne, who plans to retire early next year, says the company may become debt-free by mid-2018.
FCA remains bullish about 2018. The company anticipates gains in net revenue to about €125 billion, adjusted operating profit of at least €8.7 billion and adjusted net profit of about €5 billion.
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