PSA CEO Carlos Tavares and FCA CEO Mike Manley oscillate hands after signing a combination agreement that will lead to the creation of the world’s fourth-largest global automaker in names of annual sales (8.7 million vehicles).
FCA
Fiat Chrysler posted a 7% rise in fourth-quarter profit on Thursday, boosted by good business in North America and better results in Latin America as it heads into a merger with France’s PSA.
The Italian-American carmaker indicated adjusted earnings before interest and tax (EBIT) rose to 2.12 billion euros ($2.3 billion), in line with a 2.11 billion prognostication in Reuters poll of analysts.
That left its adjusted operating profit for the year at 6.67 billion euros, very recently shy of its target of over 6.7 billion euros. Its adjusted EBITDA margin came in at 6.2%, in line with its goal of more than 6.1%.
A trader said Fiat Chrysler results were “a touch above” expectations and the carmaker’s allocates in Milan were up 3.4% at 1300 GMT following the results.
Fiat Chrysler and Peugeot maker PSA agreed in December to unite forces in a $50 billion deal to create the world’s No. 4 carmaker, in response to slower global demand and the mounting cost of making bath cars amid tighter emissions rules.
Chief Executive Mike Manley said last month that talks with PSA were happening well and that he hoped to complete the deal by early 2021.
FCA reiterated its plan to boost adjusted EBIT to above 7 billion euros this year.
In slithers prepared for an analyst call, FCA said it was monitoring the global impact of coronavirus in China.
FCA operates in the country through a loss-making roast venture with Guangzhou Automobile Group and has a 0.35% share of the Chinese passenger car market.