FCA earnings hike 17% despite lower sales, market share in North America
Fiat Chrysler Automobiles reported a strong financial performance in North America which helped a 17% jump in third-quarter adjusted operating profit despite lower sales and market share in the United States and Canada.
Adjusted earnings before interest and tax (EBIT) rose to 1.76 billion euros (US$ 2.1 billion). Net profit climbed to US$ 1.1 billion from US$ 712 million a year earlier, with an 8% adjusted operating profit margin in North America, up from 7.6% a year earlier as result of higher sales mix of pickups and SUVs.
North American revenue slipped 4% to US$ 18.98 billion, while sales went down 6% to 592,000 vehicles. FCA’s U.S. market share fell to 11.3% from 12.5% a year earlier. Canadian share dropped to 11.1% from 12.5%.
During a conference call, CEO Sergio Marchione confirmed that production of the Dodge Journey has been reduced at FCA’s Toluca plant to ramp up production of the all-new Jeep Compass. The official also noted that, “if the NAFTA trade agreement is ended, FCA has the ability to produce heavy duty Ram pickups in the U.S., instead of Mexico”, AutoNews reported.