Fiat Chrysler Automobiles NV (NYSE:FCAU) reported that its 3Q2016 financial results came strong. The adjusted EBIT margins came at 5.6% that is a jump of 130 basis points from last year. All the divisions contributed positively to the enhancement in the result YoY, excluding LATAM, which remains to suffer due to the market situation in Brazil. Maserati recorded a strong quarter on the back of the Maserati Levante launch and posted double-digit margins in 3Q2016.
On the balance sheet, the net industrial debt of Fiat jumped by €1 billion as was projected with the normal Q3 seasonality, in both EMEA and NAFTA, as the company saw the model year switch in NAFTA and some closure in EMEA. So, this had a negative impact on overall working capital. The management projected it to be nearly €1 billion. So, they are still confirming net industrial debt projections for the fiscal on the back of 3Q2016 performance.
The Jeep Compass was introduced in Brazil, which is the third item in the Pernambuco plant. It will also be introduced soon in Mexico and China production plants. The company finalized the new labor deal with Unifor, which was rectified earlier in this month, and so Fiat now have a 4-year deal with Unifor to work in association with them.
Fiat have increased full-year guidance for FY2016 following strong results in 3Q2016 and year-to-date. It reported net revenue for the year to surpass €112 billion. The company increased its adjusted EBIT guidance to over €5.8 billion from the previous guidance of €4.5 billion. Adjusted net profit is expected to come over €2.3 billion, up from previous guidance of €2 billion. Net industrial debt projection for the year is set less than €5 billion.
Coming to the new products introduced in the quarter, the Maserati Levante was launched. It marks the first SUV under the Maserati brand. The company has introducing it in NAFTA and in Europe. The worldwide orders for the new vehicles stands at more than 18,000 year-to-date. The received response is reaffirming the company’s commitment to the strategic plan of building its premium presence in the industry. The progress also confirms the intentions pertaining the business goal for the Maserati brand.