Fiat Chrysler (FCAU 17.21, +0.66) has climbed 4.0% after reporting mixed results and reaffirming its guidance for the full year.
The owner of brands like Fiat, Abarth, Alfa Romeo, Chrysler, Dodge, Jeep, Lancia, Maserati, Ram, Mopar, and SRT, among others, reported above-consensus third quarter earnings of EUR0.58 per share on a 1.6% year-over-year decline in revenue to EUR26.41 billion, which was shy of expectations.
Group margin improved by 110 basis points year-over-year to 6.7%. The increase was driven by higher margins in all segments.
The company shipped 1.12 million vehicles during the quarter, which was unchanged year-over-year. However, consolidated shipments declined 1.0% year-over-year to 1.05 million.
Net profit jumped 50.0% to EUR910 million while adjusted net profit grew 25.0% to EUR922 million.
Looking at the segment breakdown, NAFTA shipments declined 6.0% to 592,000 while revenue fell 4.0% to EUR16.13 billion. Adjusted EBIT increased 0.4% to EUR1.29 billion. U.S. market share declined 120 basis points to 11.3% due to reduced fleet sales, which made up 15.0% of total sales, down from 21.0% of total sales one year ago. Lower fleet volumes and discontinued vehicles were partially offset by higher shipments of Ram and Alfa Romeo vehicles.
LATAM shipments jumped 26.0% year-over-year to 140,000 while net revenue spiked 42.0% to EUR2.12 billion. Market share in Brazil declined by 100 basis points to 17.6% while Argentine market share grew 80 basis points to 12.0%. The increase in shipments was driven by sales of Fiat Argo, Jeep Compass, and Fiat Mobi.
APAC shipments rose 8.0% to 66,000 while net revenue fell 9.0% to EUR782 million. Consolidated shipments increased 5.0% to 23,000. The increase was driven by localized production of Jeep in India and Alfa Romeo in China. This was largely offset by lower Jeep imports to China.
EMEA shipments fell 3.0% to 285,000 while revenue declined 2.0% to EUR4.98 billion. European market share for passenger cars grew 10 basis points to 6.2% and declined 10 basis points to 10.9% for light commercial vehicles. Market conditions in the UK were partially blamed for the decline in shipments while light commercial vehicle sales in Italy were lower due to the presence of a large transaction in last year's results. The declines were partially offset by sales of Jeep Compass and Alfa Romeo Stelvio.
Maserati shipments rose 2.0% to 10,900, but revenue fell 6.0% to EUR821 million. Higher shipments of Maserati Levante offset lower shipments of Maserati Quattroporte. Lower shipments to China were offset by higher shipments to other Asian nations.
Components revenue increased 1.0% to EUR2.41 billion.
Looking ahead, Fiat Chrysler expects that revenue for the full year will be between EUR115 million and EUR120 million, which is ahead of market expectations. The company expects to deliver adjusted EBIT of EUR7 billion while adjusted net profit is expected at EUR3 billion.
Shares of Fiat Chrysler have enjoyed a banner 2017. While the stock has backed off its 2017 high ($18.10) from late September, it is still up nearly 90.0% for the year, trading within a point of its best level from last month.