Fiat Chrysler beats third-quarter earnings and announces special $2.27-billion dividend

FCAA Jeep Cherokee.
  • Fiat Chrysler beat earnings expectations for the third quarter.
  • The carmaker will disperse $US2.27 billion in special dividends to shareholders following the sale of its Magneti Marelli partsmaker.
  • The automaker reaffirmed its full-year guidance, under the watch of new CEO Mike Manley.

According to Reuters, on Tuesday “Fiat Chrysler reported better-than-expected third-quarter earnings and promised to pay 2 billion euros ($US2.27 billion) in extraordinary dividends using proceeds from the Magneti Marelli sale.”

A week ago, FCA made a deal to sell its partsmaker to Japan’s Calsonic Kansei for 6.2 billion euros, Reuters reported. FCA will begin to pay a regular quarterly dividend in 2019.

“The world’s seventh-largest carmaker said on Tuesday adjusted earnings before interest and tax (EBIT) for the July-September period rose 13 per cent to 1.995 billion euros, compared with 1.87 billion euros in a Reuters poll of analysts,” the news service reported.

FCA maintained guidance for the remainder of 2019. The automaker is now overseen by former Jeep-head Mike Manley, who became CEO after the sudden death of Sergio Marchionne earlier this year.

Shares were flat in pre-market trading Tuesday, at $US16.

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