Fiat-Chrysler posts Q3 operating profit of $1.2 billion
Despite challenging conditions in Europe, Fiat-Chrysler Group posted Q3 of nearly $25 billion and operating profit of $1.2 billion, two thirds of which came from Chrysler.
According to the announcement from Fiat S.p.A., group trading margin increased to 4.8% and net income was $159 million.
Net industrial debt rose to $8.2 billion as a result of payments for the U.S. and Canadian governments’ interests in Chrysler and seasonal working capital absorption. Total available liquidity stands at $29.5 billion. Fiat successfully closed a new revolving credit facility of ~$2.8 billion and issued bonds totaling $2.1 billion.
Fiat has firmed up its full-year guidance, expecting operating profit to be more than the previously announced $2.98 billion with revenues of $82.3 billion and net income of $2.4 billion. Net industrial debt is forecast between $7.09 billion and $7.9 billion.
Revenues reflect the contribution from Chrysler for the first full quarter. Fiat, excluding Chrysler, improved top-line performance by more than 4% over the prior year, with Fiat Group Automobiles resilient, despite challenges in the European car markets. Luxury & Performance brands continued their positive trend, as did Components.
Excluding Chrysler, trading margin also improved year-over-year to 3.3% from 3.0%.
Net profit was $1.2 billion, including $80.8 million in net unusual charges and a $195.7 million loss in the mark-to-market of the two Fiat stock-option related equity swaps. Excluding these two charges, net profit was ~$425.4 million.
