MILAN: Fiat Chrysler Automobiles on Wednesday reported a slightly lower than expected rise in first-quarter operating profit as Latin American losses dented a strong performance in North America.
FCA's Milan-listed shares, which are up nearly 55 percent this year, were volatile, rising a little after the results as investors welcomed news that the carmaker confirmed its 2015 forecasts, traders said.
"It may just be a small sign of relief," said George Galliers, an analyst with Evercore ISI.
"From our perspective the cash burn was definitely more aggressive than people had anticipated." The world's seventh-largest carmaker, which moved its primary listing to New York in October and is due to spin off luxury unit Ferrari later this year, reported adjusted earnings before interest and tax of 800 million euros ($879 million), up from 655 million euros a year ago.
This was below an analyst consensus forecast of 813 million euros, according to Thomson Reuters SmartEstimate.
Revenues rose 19 percent to 26.4 billion euros while net industrial debt stood at 8.6 billion euros at the end of March, up from 7.65 billion at the end of last year.
FCA's European operations swung into an operating profit in the first three months of the year, helped by healthy demand for its Jeep Renegade and Fiat 500X models, which went into production at a plant in Italy last year.
Profits rose 60 percent in North America, boosted by higher volumes and higher prices.
The region has gradually become Fiat's main profit engine since it took over management of Chrysler in 2009, when it was nearly bankrupt.
Fiat completed the buyout last year. However, the car maker's Latin American business finished the quarter with an operating loss.
The region accounted for nearly a third of FCA's overall profits three years ago, helping offset a prolonged slump in Europe. But that contribution dropped to just 5 percent last year.
In Brazil, where FCA is the market leader and where it opened a new plant this week, industry car sales are expected to fall 13 percent this year as a stagnant economy, accelerating inflation and crumbling consumer confidence batter the industry.
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