DETROIT -- Fiat Chrysler Automobiles reported adjusted earnings of 1.64 billion euros, or $1.78 billion, in the fourth quarter on continued record sales of its Jeep brand.
The fourth-quarter adjusted earnings, which included the recently spun off Ferrari super car unit, gained 39 percent from the same quarter of 2014, the company said in a report today. Fiat Chrysler Automobiles, based in London and the Netherlands, is the parent company of FCA US.
For the year, the parent company reported adjusted earnings rose 39 percent to 5.3 billion euros, or $5.75 billion, as the strong North American performance and recovering Europe offset declines in Asia and Latin America.
Without Ferrari, the company said adjusted earnings before interest and taxes rose 44 percent to 1.5 billion euros. For the year, those earnings rose 42 percent to 4.8 billion euros.
FCA US had the largest market share gain of any major automaker during 2015, gaining 0.2 percentage points in the United States over the same period a year ago to 12.7 percent on U.S. sales of 2.2 million vehicles. FCA’s sales in the United States climbed 7.3 percent in 2015.
Globally, FCA said it delivered just over 1.2 million vehicles in the fourth quarter, and 4.6 million vehicles for the year. Both figures were effectively flat from the same periods the previous year.
The company said it had fourth-quarter revenues of $33.65 billion, up 11 percent, including Ferrari, which was spun off in January. For the year, FCA’s global revenues were $122.8 billion, up 18 percent.
FCA's fourth quarter net income, the bottom line profit that includes all one-time gains and expenses and excludes Ferrari, fell 40 percent to 251 million euros ($273 million). Full-year net income also fell 40 percent to 377 million euros ($410 million).
The automaker’s net debt fell in 2015 to $9.32 billion from the $11.78 billion it reported at the same point last year, thanks in large part to proceeds from the spinoff of Ferrari.
The company reported cash of $32.25 billion, down from $35.7 billion one year ago.
CEO Sergio Marchionne has made implementing a 48 billion-euro investment and restructuring plan his final goal after abandoning an effort to entice GM into a merger.
Forecast
Meanwhile, FCA raised the financial targets of its turnaround plan.
The carmaker said it now saw adjusted operating profit of 8.7-9.8 billion euros in 2018 and revenues of around 136 billion euros, up from previous forecasts of 8.3-9.4 billion and around 129 billion respectively. The comparison forecasts were updated to exclude Ferrari.
The upgrade came as a surprise to financial markets, with most analysts forecasting the turnaround plan would fall short of its initial goals due to model delays, deferred investments and slowing demand in Asia and Latin America.
"These targets were revised upwards when previous targets were already well above consensus," one trader said.
Traders said that while the quarterly performance was very strong and the company impressed with its debt-cutting efforts, the guidance for this year was cautious. FCA forecast an adjusted operating profit of more than 5 billion euros and net debt falling to below 5 billion euros for 2016.
"The question remains how FCA will fare should the U.S. market turn," another trader said.
Reuters and Bloomberg contributed to this report.
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