Fiat Chrysler Automobiles (FCA) on Tuesday reported a 29 percent rise in third-quarter adjusted operating profit and raised its full-year guidance, but recall costs and pressure on North America margins weighed on the stock.
“The company said it earned 47 cents per share, easily beating analyst expectations of 39 cents per share,” the Detroit Free Press reported.
Sales were basically flat at 26.8 billion euros, below analyst expectations of 27.5 billion.
FCA, which spun off luxury unit Ferrari at the start of this year, said net industrial debt rose to 6.5 billion euros by the end of September from 5.5 billion euros three months earlier.
The carmaker raised its full-year guidance for adjusted EBIT and adjusted net profit but kept its sales and debt projections intact.
FCA stock was up 2% in pre-market trading on Tuesday. It close at $6.50 on Monday, up 3%.
The US market has been important for FCA, as consumer have snapped up its Jeep SUVs and RAM pickup trucks, paralleling a trend being enjoyed by Detroit rivals General Motors and Ford.
However, as sales have plateaued in the US, truck- and SUV-makers are under increasing pressure to raise incentive spending to maintain market share, which is bringing profitability under stress.
- Markets Insider