FCA fourth quarter 2018 net income hikes 61% on higher light truck sales in North America
Fiat Chrysler Automobiles (FCA) reported fourth-quarter 2018 net income of 1.29 billion euros (US$1.47 billion), which is 61% higher compared to same period from previous year, on a 6% increase in revenue. Excluding one-time items, FCA earned 1.04 euros (US$1.18) per share, up 49% from its year-ago result.
For the full year, FCA earned 3.20 euros (US$3.63) per share on 115.4 billion euros (US$131 billion) in revenue, in line with Wall Street analysts’ expectations.
FCA’s NAFTA unit earned 1.68 billion euros (US$1.91 billion) in the fourth quarter of 2018, up 24.5% from the fourth quarter of 2017.
Higher sales volumes and improved pricing, driven largely by the Jeep brand and the all-new 2019 Ram 1500 pickup, more than offset the effects of higher commodity costs.
The company’s adjusted-EBIT margin in North America was 8.7%, up 0.7 percentage points from a year ago.
Based on the 2018 financial performance, FCA will make average profit-sharing payments of US$6,000 to eligible UAW-represented employees. Approximately 44,000 employees will receive the payment on March 8, 2019.
“With this payment, U.S. hourly employees have received on average more than US$29,000 in profit sharing since 2009,” said the company in a statement.
As negotiated in the 2015 FCA Collective Bargaining Agreement, the 2018 profit sharing payment is based on the adjusted EBIT margin performance of the North American region reported in the FCA N.V. financial results and on individual compensated hours.