Fiat Chrysler net profit slumps 40%

Wednesday reported that net profit for the fourth quarter, on IFRS basis, slid to 251 million euros from last year’s 420 million euros.

In addition, the company’s net income in the fourth quarter and for the full year plummeted by 40 percent, to $410 million.

The world’s seventh-largest vehicle maker said adjusted operating profit for the October-December period rose to €1.64-billion ($1.78-billion) from 1.18 billion the previous year and compared with an analyst consensus forecast of €1.3-billion. Revenues slumped by 25 percent in Latin America and 22 percent in Asia, while rising by 13 percent in Europe.

Fiat Chrysler Automobiles, based in London and the Netherlands, is the parent company of FCA US.

“The results are strong, and guidance is solid, but cautious”, a trader said.

The company’s 2015 revenue of 113.2 billion euro ($123.1 billion) beat analyst expectations for the year of 111.8 billion euro ($1215 million).

FCA’s ability to fulfill its newly tweaked five-year plan anf financial targets could depend on the continued strength of the US market, as well as a possible rebound in Brazil, a Fiat Chrysler stronghold where the economy and demand have been weak.

The group, which spun off Ferrari on January 4th, expects sales to rise this year from the €110 billion it booked in 2015 excluding Ferrari. At present, Fiat Chrysler stock is trading down 2.23% at $7.45, as of 6:20 AM EST. Including the effects from the separation, net industrial debt fell to 5 billion euros from 7.85 billion at the end of September.