BALOCCO, Italy (Reuters) - Fiat Chrysler expects to at least double adjusted operating profits and return to an investment grade rating and dividends under a new plan to 2022, helped by strong growth from its Jeep SUV brand and an expansions of its premium product portfolio.
Outlining its next five-year strategy, the world’s seventh-largest carmaker said it targets adjusted earnings before interest and tax of between 13-16 billion euros in 2022, up from 6.6 billion euros last year, while margins are expected to rise to between 9-11 percent from 6.3 percent in 2017.
The carmakers expects sales to grow by around 7 percent each year on average. It targets a dividend payout ratio of around 20 percent throughout the plan, expecting to pay out a total of around 6 billion euros over the next five years.
The carmaker is on track to meet or exceed nearly all of the targets of its last five-year plan to 2018, notably a much-celebrated goal to eliminate all of its net debt by the end of June.
Reporting by Agnieszka Flak, editing by Valentina Za