Fiat Chrysler maintains guidance thanks to strong North America performance

Fiat Chrysler maintains guidance thanks to strong North America performance
The logo of Fiat carmaker is pictured at a dealership in Orvault near Nantes, France, June 3, 2019. REUTERS/Stephane Mahe   -  Copyright  STEPHANE MAHE(Reuters)
By Reuters

MILAN (Reuters) – Fiat Chrysler <FCHA.MI> <FCAU.N> stuck to its full-year profit guidance on Wednesday after operating profits topped expectations in the second quarter, with record results in the North American market helping it to defy an industry slowdown.

In its first earnings release since a failed attempt to merge with France’s Renault <RENA.PA>, FCA said its was confident its adjusted earnings before interest and tax (EBIT) would top last year’s 6.7 billion euros (6.14 billion pounds).

The confirmation of the outlook initially sent Milan-listed shares in the Italo-American automaker up over 4% and they were 3.47% higher by 1122 GMT.

A broad-based auto sales downturn has rattled the sector, pushing FCA’s competitors – including Renault, Daimler <DAIGn.DE> and Aston Martin <AML.L> – to cut their sales forecasts after second-quarter results, while U.S. carmaker Ford <F.N> gave a weaker-than-expected 2019 profit outlook.

Japan’s Nissan, a long term partner of Renault, said it would cut 12,500 jobs by 2023 after its earnings collapsed.

FCA U.S. shipments were down 12% in the second quarter but the group said that the successful performance of its RAM brand resulted in a share of the large pick-up truck market of 27.9%, up 7 percentage points from last year.

The group’s adjusted EBIT came at 1.52 million euros in the second quarter, versus analysts’ expectations of 1.43 billion euros, according to a Reuters poll.

(Reporting by Giulio Piovaccari; Editing by Keith Weir)

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