Fiat Chrysler reports better than expected Q4

Fiat Chrysler

Fiat Chrysler’s fourth-quarter operating profit was higher than expected, the company revealed on Wednesday. The company’s sales were helped along by North America and improving operations in Europe, which offset weakness in Latin America and Asia.

FCA, the world’s seventh-largest carmaker, forecast an adjusted operating profit of more than 5 billion euros and net debt falling to below 5 billion euros in 2016.

Later on Wednesday, FCA will update the market on its 48-billion-euro business plan to 2018.

CEO Sergio Marchionne will need to deliver an impressive turnaround plan during his call with investors. The company has experienced model delays, deferred investments, and slowing demand in Asia and Latin America.

Adjusted operating profit for the October-December period rose 39% to 1.64 billion euros ($1.78 billion), compared with an analyst consensus of 1.3 billion euros. Sales also rose 11% to 30.1 billion euros, also above expectations.

“The results are strong, and guidance is solid, but cautious,” a trader said. “And the question remains how FCA will fare should the U.S. market turn.”

FCA’s North American operations accounted for 85% of the groups profit in 2015. The company’s big winner was its Jeep sport utility vehicles.

Fourth-quarter numbers still included luxury unit Ferrari, which was spun off into its own publicly traded company at the start of 2016.