Fiat Chrysler Automobiles N.V. demonstrated the earning power of the Jeep and Ram brands during the during the fourth quarter as the company’s net profit and earnings per share climbed 35% thanks to a strong showing by the company’s truck lines.
The company reported full-year net profit from continuing operations of €2.7 billion, or $2.96 billion, on revenue of €108.1 billion, or $118.7 billion. The company’s adjusted net adjust EBIT was €6.7 billion, or $7.4 billion, and 6.2% margin. The company posted new records for North America results and margin. Industrial free cash flows at €2.1 billion. The net income and revenue were up 19% and 2%, respectively.
For the full year, Mike Manley, FCA’s chief financial officer, said the automaker delivered on its commitment to continued shareholder value generation as record results in North America as well as improved Latin America outcomes in 2019 lead to strong group performance.
The positive results led to impressive profit-sharing checks for the company’s approximately 44,000 UAW-represented hourly workers. They’re eligible for checks up to $7,280 – less than General Motors employees, but more than Ford workers – that will start showing up March 13, officials noted.
The Ram and Jeep brands drove North American results as strong sales of the all-new Ram Heavy-Duty, Ram 1500 and Ram 1500 Classic resulted in record Ram brand sales in the U.S., up 18%.
“Last year was a historic year for FCA. We continued to deliver value for our shareholders, and we took actions to thrive in the future by substantially strengthening our financial position, committing to key product investments and entering into a combination agreement with PSA,” Manley said in a statement.
FCA expects the strong performance to continue in 2020, confirming guidance of adjusted EBIT in excess of 7 billion euros, adjusted diluted earnings per share of greater than 2.80 euros per share, and industrial free cash flows of more than 2 billion euros.
The company reported record fourth quarter results, with net profit from continuing operations of 1.6 billion euros and adjusted EBIT of 2.1 billion euros and 7.1% margin. Industrial free cash flows of 1.5 billion euros.
The successful launch of the all-new Jeep Gladiator, which was recently named the 2020 North American Truck of the Year, was also a key factor in delivering record results in North America. In Latin America, positive performance in Brazil more than offset headwinds from weak market conditions in Argentina and other countries in the region.
Strong operating performance drove Industrial free cash flows of 2.1 billion euros.
In addition to continued strong performance, the Group reinstated shareholder remuneration with the commencement of an ordinary annual dividend and the payment of an extraordinary dividend upon completing the sale of Magneti Marelli during the second quarter of 2019.
In the first quarter, Manley said FCA committed investments to expand production capacity in Michigan for the next generation Jeep Grand Cherokee, all-new Jeep Wagoneer and Grand Wagoneer and an all-new three-row full-size Jeep SUV.
In the second quarter, FCA executed partnership agreements with Enel X and ENGIE Group to develop e-mobility solutions for electrified vehicles in Europe. In Q3, we announced plans to renew, expand and electrify the Maserati product portfolio.
In Q4, FCA entered into an agreement to sell the Group’s cast iron automotive components business operated through its subsidiary, Teksid SpA. Finally, FCA and Groupe PSA agreed to a 50/50 merger that will create a leading global mobility company.
The merger, which is expected to close at the end of 2020 or early 2021, is expected to generate approximately euros 3.7 billion euros of annual synergies at run-rate.