Fiat Chrysler Automobiles says it was able to achieve guidance targets in 2014, as strong demand in North America and a recovery in Europe offset drops in Latin America. Now the seventh-largest carmaker in the world, Fiat Chrysler posted EUR3.65 billion ($4.1 billion) in operating profit, adjusted for unusual items.
The carmaker expected an operating profit of between EUR3.6 billion and EUR4 billion while analysts surveyed by Thomson Reuters SmartEstimate provided an average of EUR3.4 billion. Fiat Chrysler logged EUR632 million ($617.4 million) in net profit on the back of EUR96.1 billion ($109 billion) in revenues (+11 percent).
As of December 31, 2014, Fiat Chrysler had a net debt of EUR7.7 billion, up from EUR7 billion at as of end of 2013. In 2014, Fiat Chrysler’s North American operations accounted for more than half of its operating profit and 55 percent of revenues. FCA US posted logged a 16-percent jump in vehicle sales to 2,090,639 units last year in a market that surge 6 percent.
In Europe, meanwhile, Fiat Chrysler is making a rebound and may even post a breakeven at an operating level this year. Fiat Chrysler managed to cut its operating losses in Europe in 2014 from EUR506 million to EUR109 million.
In this context, FCA expects higher revenues at around EUR108 billion and higher operating profit (excluding unusual items) at between EUR4.1 billion and EUR4.5 billion for this year.
This is on the back of global sales of between 4.8 million and 5 million vehicles. This year, the carmaker is seen to hike spending as part of a EUR48 billion expansion plan that foresees a 60-percent hike in global sales to 7 million cars and a five-fold surge in net profit by 2018.