FCA: record profits (+93%), reduced debts and the title reaches 20 euros

Flywheel, as expected, Fiat Chrysler's 2017 accounts, above all the net profit which almost doubles that of 2016 at 3,5 billion, even if some data such as net revenues were slightly below expectations at 111 billion, in line with the previous year. Initially the results confused the markets, with the FCA stock which was initially volatile in Piazza Affari, only to be awarded among the best in the FtseMib at the beginning of the afternoon, arriving to earn 3% and to break through the threshold of 20 euros per share.

FCA therefore closed 2017 with net profit growing by 93% to 3,5 billion euros (including net charges of 100 million related to the tax reform in the States). The Bloomberg consensus had expected a slightly higher net incometo $3,548 billion, while adjusted net profit rose 50% to $3,77 billion, in this case significantly above the $3,489 billion consensus estimate.

Net revenues amounted to 111 billion, in line with 2016 (up by 1% at constant exchange rates). The figure is slightly lower than consensus forecasts at 112,839 billion as adjusted EBIT, which grew to 7,054 billion (+16% and +19% at constant exchange rates) when the consensus expected it at 7,163 billion.

Overall deliveries amounted to 4,74 million cars, also in this case in line with 2016, when they amounted to 4,72 million. Instead, consolidated deliveries fell 1% to 4,423 million from 4,482 million in 2016. Net industrial debt fell to $2,39 billion (2,470 billion the consensus estimate), almost halved compared to 4,585 billion at the end of 2016. Debt has also improved, falling to 17,971 billion, against 24,048 billion.

The group led by Sergio Marchionne also has confirmed the targets for 2018: net revenues of approximately 125 billion, adjusted ebit greater than 8,7 billion, adjusted net profit of approximately 5 billion and industrial net liquidity around 4 billion.

Meanwhile, the indiscretions continue to chase each other, even if today during the conference call the official announcement has not yet arrived, of a great novelty on the industrial front, which should consist of the relaunch of the Pomigliano plant through the production of a small Jeep crossover, basically a Renegade suv but in a reduced format, which will be built where the Fiat Panda is built today (which will be moved to Poland from 2020).

“With these economic and financial results – he commented in this regard the Fim-Cisl national secretary Ferdinando Uliano – now Marchionne can't have any hesitation. Investments in Italian plants can be increased immediately, without having any negative repercussions on the cancellation of the industrial debt. For the Fim-Cisl, full employment of the Italian factories has always been the priority of its trade union action. The industrial plan that will be presented on June 2018, 4 will complete the FCA group's strategic design for the next XNUMX years on products, engines and the advancement of autonomous driving, but already now - Uliano reiterates - it is essential to address the priorities of those productive realities with greater employment problems and I am referring to Pomigliano, Mirafiori, Melfi and Modena”.