FCA has reported net profit from continuing operations for Q3 at EUR0.8 billion, Adjusted net profit of EUR0.9 billion, Adjusted EBIT of EUR1.5 billion, margin at 5.7%. Full-year guidance is confirmed, the company said.
“We continue to deliver strong performance in North America and LATAM. Robust demand for our new products, along with steps we’ve taken to exert discipline across all of our businesses, have generated the momentum to achieve our full-year 2019 guidance.”- Mike Manley, CEO
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While Group Adjusted EBIT was in line with prior year, North America achieved record Q2 results despite shipments being down 12%, largely attributable to dealer stock reductions of approximately 80 thousand units. The successful launch of the all-new Ram heavy-duty pickup, along with the continued success of the all-new and Classic Ram 1500, resulted in a U.S. large pickup market share of 27.9% in Q2, up 7 ppts from last year. In addition, the all-new Jeep Gladiator pickup launch is exceeding our expectations with production already achieving full run rate. Although new to the market, the Jeep Gladiator earned a 7.7% share of its U.S. segment in June.
Solid financial results in LATAM were driven by strong commercial performance in Brazil where we retained the market leader position.
Our Industrial free cash flows were strong as well at €0.8 billion, though this was down €0.7 billion from prior year due to higher capex and Q2 payments of €0.4 billion related to U.S. diesel emissions matters accrued for in 2018.
The company said it has also taken a number of steps to ‘further strengthen our fundamental business performance’. In China, FCA said it overhauled the leadership and structure of its joint venture. ‘We also continue to strengthen business disciplines around our management of costs, inventories, commercial initiatives and product planning processes,’ the company said.
In the second half of the year, FCA said it will continue to focus on the underperforming areas of our business, including Maserati, ‘where we’ve reinforced our leadership team; and EMEA, where we continue to target increased margins through the impact of restructuring actions, better management of channel mix, and targeted product strategies’.
