Fiat Chrysler Automobiles NV posted record operating profits in the third-quarter, riding a surge in demand for expensive pickups and a rebound in the U.S. auto market, where dealers are straining to keep inventories in stock.
The Italian-American auto maker reported net profit of €1.2 billion ($1.4 billion) for the third-quarter Wednesday, compared with a €179 million ($200 million) loss a year ago, as many of the company’s plants resumed production this summer and buyers began returning to showrooms after widespread pandemic-related shutdowns earlier in the year.
Global operating profits of $2.7 billion, or $1.14 adjusted earnings per share, were both improvements from the third-quarter last year. The earnings results handily beat analysts’ expectations of $0.44 a share.
Still, shares were down nearly 3% in morning trading, falling slightly more than the broader market.
Jefferies analyst Philippe Houchois called Fiat Chrysler’s results “impressive” but said the shares likely came under pressure because of broader concerns about escalating Covid-19 cases in Europe, which are raising the risk of factory closures.
