Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Fiat Chrysler profit rises, outlook 'firm' ahead of Peugeot merger

Stock MarketsFeb 06, 2020 10:15AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: The 2020 North American Truck of the Year, 2020 FCA Jeep Gladiator, is displayed during the award ceremony in Detroit

By Giulio Piovaccari and Paul Lienert

MILAN/DETROIT (Reuters) - Fiat Chrysler (MI:FCHA) (N:FCAU) posted a 7% rise in fourth-quarter profit on Thursday, boosted by strong business in North America and better results in Latin America as it headed into a merger with France's PSA (PA:PEUP).

In a briefing with analysts, Chief Executive Officer Michael Manley said FCA was still "firm" on its financial guidance for 2020. Still, he warned that disruptions due to the deadly coronavirus outbreak in China could threaten production at one of Fiat Chrysler's European plants within two to four weeks. He did not identify which plant could be affected.

FCA so far has not reported production shutdowns at plants outside China related to the outbreak. Chinese auto parts and assembly plants have extended previously planned Lunar New Year's shutdowns through Feb. 9, and some have pushed the shutdowns out further.

FCA operates in China through a loss-making joint venture with Guangzhou Automobile Group (GAC) (SS:601238) and has a 0.35% share of the Chinese passenger car market.

Manley said FCA plans to meet tighter emissions regulations in Europe initially with new hybrid gasoline-electric versions of several Jeep models, with plans to shift eventually to more pure electric models beyond 2025.

He said the automaker expected to meet future emissions standards without buying credits from electric carmaker Tesla (NASDAQ:TSLA) after 2021 in Europe and after 2023 in the United States as it introduces more hybrid models that produce lower emissions.

"Beyond 2025, full electric (vehicles) will become the norm" across the industry, Manley said, ultimately replacing hybrids which are facing future bans in several countries.

Asked about FCA's short-term reliance on hybrids rather than pure electric vehicles to meet lower CO2 levels, he said, "We are going to be part of that solution" with future electric vehicles, but "in the most cost-effective way we possibly can."

The Italian-American carmaker said adjusted earnings before interest and tax (EBIT) rose to 2.12 billion euros ($2.3 billion), in line with a 2.11 billion forecast in a Reuters poll of analysts.

That left its adjusted operating profit for the year at 6.67 billion euros, just shy of its target of over 6.7 billion euros. Its adjusted EBITDA margin came in at 6.2%, in line with its target of more than 6.1%.

A trader said Fiat Chrysler (FCA) results were "a touch above" expectations, and the carmaker's shares in New York were up 1.3% in early trading, while shares in Milan were up 1.9%.

Fiat Chrysler (FCA) and Peugeot maker PSA agreed in December to combine forces in a $50 billion deal to create the world's No. 4 carmaker, in response to slower global demand and the mounting cost of making cleaner cars amid tighter emissions rules.

Manley said last month that talks with PSA were progressing and he hoped to complete the deal by early 2021.

FCA reiterated its plan to boost adjusted EBIT to more than 7 billion euros this year.

($1 = 0.9091 euros)

Fiat Chrysler profit rises, outlook 'firm' ahead of Peugeot merger

Related Articles

Danone doubles supply of some baby formula to U.S.
Danone doubles supply of some baby formula to U.S. By Reuters - May 25, 2022

By Richa Naidu LONDON (Reuters) - Danone SA (OTC:DANOY) on Wednesday said it has been doubling shipments to the United States of Neocate formula for infants allergic to cow's...

Britain's M&S warns on outlook after profit jump
Britain's M&S warns on outlook after profit jump By Reuters - May 25, 2022

LONDON (Reuters) -British retailer Marks & Spencer (OTC:MAKSY) joined rivals in warning on the outlook for the current year amid a worsening cost-of-living crunch, taking the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email