Fiat Chrysler Automobiles has beaten analysts' first-quarter profit forecasts, helped by a strong performance in North America.
According to Reuters, FCA, which spun off Ferrari at the start of this year, said its net industrial debt rose to EUR6.6bn (US$7.4bn) as at 31 March 2016 from EUR5.1bn at the end of fourth quarter 2015, boosted by seasonal and currency effects.
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The news agency report noted chief executive Sergio Marchionne has vowed to wipe out debt by 2018 but investors are worried about product delays and headwinds in Brazil, once a key market for the group.
FCA said adjusted operating profit for the first quarter nearly doubled to EUR1.38bn, above analysts' average estimate of 1.17bn in a Thomson Reuters poll. Sales rose 3% to EUR26.57bn, below expectations.
"The higher debt seems to be the main negative … and the question remains whether the profits can be replicated in future," a Milan-based trader told Reuters.
Reuters said North America accounted for nearly 90% of FCA's quarterly profit, reflecting strong demand for Jeep SUVs and pickup trucks. The company also returned to profit in Latin America.
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By GlobalDataAdjusted net profit was EUR528m, EUR497m higher than in Q1 2015, FCA said.
In a statement, the automaker said it shipped 1,086m units worldwide in the first quarter of 2016, "in line with" Q1 2015's 1.093m. Jeep shipments were up 15% year on year to 326,000.
