Fiat Chrysler Automobiles (FCA) reported a near doubling in annual earnings on Thursday.
Profits for 2017 jumped 93% compared to the prior year, to €3.5bn, with all business segments making progress.
However, FCA modestly trimmed its forecasts for 2018 revenues and estimated adjusted operating profit for the current year at the lower end of its previous guidance.
Rising sales of sports utility vehicles and the more profitable luxury models drove profits higher in 2017.
The earnings jump came despite overall revenue falling behind expectations.
Net revenues of €111bn were in line with the prior year but compared to forecasts of €115-120bn. Worldwide shipments were also in line with the prior year.
Profit margins rose in all segments of the business, with group wide margin jumping 90 basis points to 6.4%.
FCA also reported that it had managed to cut net industrial debt to €2.4bn, a near 50% reduction.
In terms of regional performance, earnings in North America rose 2% to €5.3bn despite sales falling 7%, as rising profit margins drove financial performance. North America is by far FCA´s most important region, accounting for around 75% of profits.
Net revenues from Europe, the Middle East and Africa, the next most important profit block for the group, rose 36% to €735m.