Azernews.Az

By Bloomberg

Fiat Chrysler Automobiles NV raised its full-year earnings forecast after second-quarter profit jumped 58 percent because of growth in Jeep sport utility vehicle sales that helped North American profit more than double.

Adjusted earnings before interest and taxes will equal or exceed 4.5 billion euros ($4.9 billion), the London-based carmaker said. Fiat Chrysler was predicting earnings in a range of 4.1 billion euros to 4.5 billion euros. Second-quarter profit at that level surged to 1.53 billion euros from 968 million euros a year earlier.

Chief Executive Officer Sergio Marchionne, who is spinning off the Ferrari supercar division to help finance global expansion of the Italian-U.S. automaker’s Jeep, Alfa Romeo and Maserati brands. He has also pushed for more car-industry consolidation to share technology costs and boost returns.

“Marchionne managed to surprise everyone by raising profit targets,” even amid concerns about weak Latin American markets and U.S. vehicle recalls, said Vincenzo Longo, a strategist at IG Market in Milan. “That’s outstanding for investors, and that’s why the stock is booming.”

Fiat Chrysler shares jumped as much as 6.6 percent to 14.09 euros, the biggest intraday gain since Oct. 29, and were up 4.8 percent at 2:54 p.m. in Milan. The stock has risen 44 percent this year, valuing the company at 17.1 billion euros.

Earnings in North America increased to 1.33 billion euros from 595 million euros a year earlier, with the margin widening to 7.7 percent of sales from 4.9 percent. Profit in the European, Middle East and Africa market amounted to 57 million euros after the business broke even in the 2014 period.

The Jeep brand’s deliveries rose 27 percent, helping group vehicle sales match the year-earlier figure at 1.2 million autos.