Fiat Boosts Profit Target as Jeep Boom Fuels Fatter Margins
- Full-year profit forecast raised for the second time this year
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Fiat Chrysler Automobiles NV raised its 2016 profit forecast for the second time this year, boosting the target after third-quarter earnings jumped 29 percent on the Jeep brand’s global expansion.
The automaker, which generates the lion’s share of its profit in North America, is bracing for slowing growth in the U.S. by shifting production to higher-margin pickup trucks and sport utility vehicles and away from small cars. The strategy is bearing fruit as profit rose last quarter despite a decline in deliveries, prompting Fiat to increase its forecast for full-year adjusted earnings before interest and taxes by 300 million euros to at least 5.8 billion euros ($6.3 billion).