Fiat Chrysler Automobiles (FCA) has posted net profit of EUR1.8 billion for 2016 (USD1.9bn) compared with just EUR93m in the previous year when it was impacted by restructuring and recall costs.

The impressive bottom line was accompanied by improved profit margin in North America and increased sales in Europe.

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FCA also delivered adjusted EBIT of EUR6.1bn, up 26% with 5.5% margin. Adjusted net profit was EUR2.5bn, up 47%. The company said net Industrial debt reduced to EUR4.6bn and that ‘guidance for 2017 confirms conviction in achievement of 2018 targets’.

Record full-year adjusted EBIT was driven by continued strong performance in NAFTA and improvements in other segments, in particular EMEA and Maserati.

NAFTA margin increased to 7.4% from 6.4%. Maserati margin more than doubled to 9.7%, with second-half margin of 12.0%.

For 2017, the automaker said it expects its net profits will top EUR3bn.

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“We are now 60% done with the 2014-2018 plan,” FCA CEO Sergio Marchionne said on a conference call with analysts. “Those 2018 numbers don’t look as undoable as they looked then and that’s a big sign of comfort in the management team.”

Worldwide combined shipments last year were put at 4,720,000 with Jeep up 9% to 1,424,000 units.

FCA said that market share in Europe was up 40 bps to 6.5%; it also remained market leader in Brazil with 18.4% share and maintained share in US at 12.6%

FCA said that in NAFTA area adjusted EBIT increased by 15% last year to EUR5,133m, primarily due to improved vehicle mix, purchasing savings and lower warranty costs. However that was partially offset by lower shipments, increase in product costs for content enhancements and higher manufacturing costs. There was also a decrease in shipments ‘primarily due to planned phase-out of the Chrysler 200 and Dodge Dart’. That left net revenues for the region down 1%.

In the EMEA region, 2016 adjusted EBIT was up 154% to EUR540m. A stronger European market helped passenger car shipments rise 13% to 1,018,000 while shipments of LCVs were up 19% to 288,000 units. FCA said that net revenues increased primarily due to higher volumes and favourable vehicle mix mainly driven by new Fiat Tipo family, new Alfa Romeo Giulia and Jeep Renegade.

Adjusted EBIT by segment