Fiat Chrysler (FCA) increased its annual profit forecast for the second time this year, reporting on the sharp rise in quarterly operating profit, which was supported by a good demand for Jeep SUVs.
The seventh largest automaker in the world reported that adjusted operating earnings before interest and taxes (EBIT) increased by 29% in the third quarter to 1.5 billion euro ($ 1.63 billion), exceeding the consensus forecast of analysts polled by Reuters, at the level of 1.4 billion euro.
This figure excludes the write-offs in the amount of 159 million euro, mainly related to the planned campaigns for recall.
Sales for the quarter remained virtually unchanged, amounting to 26.8 billion euro, and was below the consensus forecast of analysts at the level of 27.5 billion euro.
The FCA shares, traded in Milan, rose 0.68% to 5.93 euro as of 18.10 GMT.
The automaker said it expects at the end of 2016 to obtain an adjusted EBIT above 5.8 billion euro, whereas previously this figure was projected at a rate of more than 5.5 billion euro. Forecasts of sales and expectations regarding debt levels remained unchanged.
FCA, which earlier this year has allocated a separate company for the Ferrari unit, reported that its net industrial debt increased by 6.5 billion euro by the end of September, from 5.5 billion euro three months earlier.
Despite the fact that the FCA is one of the companies with the highest levels of debt, it is investing billions of dollars to increase its share in the lucrative market of SUVs and pickup trucks in North America.
North America brings 85% quarterly profit FCA, reflecting strong demand for Jeep SUVs and pickup trucks.
The SUVs and trucks supported another large manufacturer, which also reported on its profits today. The third largest auto manufacturer in the world – General Motors (NYSE: GM) Co said that its net profit in the third quarter doubled thanks to good sales of trucks and SUVs in the domestic market of the company – in the United States.
The GM profits for the quarter amounted to $ 2.8 billion, or $ 1.76 per share, up 104%.