Fiat Chrysler beats thanks to strong US sales - and the automaker announced plan to merge with Peugeot
- Fiat Chrysler Automobiles posted another strong quarterly profit as North American sales of pickups and SUVs remained robust.
- Earlier FCA and the PSA Group announced their intention to execute a 50-50 stock-swap merger.
- FCA jas been seeking a merger partner for years; most recently, a potential deal with Renault fell through.
- FCA's shares moved up on Thursday's combination of news.
On Thursday, Fiat Chrysler Automobiles and France's PSA Group announced their intention to execute a 50-50 stock-swap merger that would create world's fourth-largest automaker.
But FCA on Tuesday also reported third-quarter earnings and again posted a strong result due to pickup and SUV sales in the North American market.
The strong results led Fiat Chrysler (FCA) to reiterate its full-year guidance of adjusted earnings before interest and tax (EBIT) over 6.7 billion euros ($7.5 billion). It also expects a further improvement of its financial performance next year.
"Our strong Q3 results, built on record North America profitability, put us in a position to deliver our full-year guidance and to further improve financial performance in 202," CEO Mike Manley said in a statement.
FCA shares spiked in pre-market trading on Thursday in New York. They were up over 4%, to $15.63, on very elevated volume. Year-to-date, the stock has risen only about 3.5%.
(Reuters reporting by Giulio Piovaccari and editing by Stephen Jewkes.)
