MILAN (Bloomberg) -- Fiat Chrysler Automobiles' fourth-quarter profit margin shrank as the company said it took a charge of 834 million euros ($903 million) to adjust its production capacity in North America.
Earnings before interest and taxes (EBIT) fell to 480 million euros from 951 million euros a year earlier, the automaker said today in a statement.
Ebit adjusted for one-off charges rose 39 percent to 1.64 billion euros from 1.18 billion euros a year earlier. Sales revenue rose percent to 30.1 billion euros from 27.1 billion.
The fourth-quarter numbers still included luxury unit Ferrari, which was spun off at the start of this year. Excluding Ferrari, adjusted operating profit in the quarter stood at 1.53 billion euros, while sales were at 29.4 billion euros.
FCA's return on sales, excluding Ferrari, narrowed in the fourth quarter to 1.6 percent from 3.6 percent a year earlier.
The fourth-quarter writedowns include the cost of shutting down some factories temporarily to get ready for new car models, Fiat said.
Full-year profit rose 40 percent to 5.3 billion euros.
FCA's North American operations amounted to nearly 85 percent of group profits last year, helped by higher sales of Jeep SUVs. Its operating margin in the region rose to 7.1 percent in the last quarter.
Net industrial debt fell to 6 billion euros at the end of 2015, down from 7.85 billion at the end of September. Including the effect of Ferrari's spin-off, net debt fell to 5 billion euros.
CEO Sergio Marchionne has made implementing a 48 billion-euro investment and restructuring plan his final goal for the automaker after abandoning an effort to entice General Motors into a merger.
The CEO has said he will update the company’s financial targets through 2018 on a conference call with analysts later today.
Fiat forecast this year’s adjusted Ebit will rise to more than 5 billion euros, compared with 4.8 billion euros in 2015 excluding the Ferrari super-car unit spun off this year. Net industrial debt is expected to be less than the 5 billion euros without Ferrari in 2015.
Reuters contributed to this report