Fiat SpA said Wednesday that net profit more than
doubled in the third quarter, leading it to raise its full-year
targets on a strong performance by its core auto division and good
results in its truck and farm machinery operations.
Shrugging off stiff competition in a sluggish European auto
market, Fiat reported a net profit for the quarter of 432 million
euros (US$615.7 million), up from 195 million euros the same quarter
a year ago. Revenue rose 17 per cent to 13.86 billion euros ($19.76
The most significant improvement came again from the Turin-based
group's auto division, boosted by strong sales of its flagship
Grande Punto car, as well as its new 500 model.
Brazil, Fiat's second-largest market outside Italy, also
continued to show strong growth.
Trading profit _ meaning earnings before asset disposals,
restructuring costs or other one-time items _ more than doubled,
rising to 185 million euros ($263.7 million) from 51 million euros a
Trading profit for the full year is now expected to range from
2.9 billion euros to three billion euros ($4.13 billion to $4.28
billion), and net income is forecast at between 1.8 billion and 1.9
billion euros ($2.57 billion and $2.71 billion).
Fiat, which also makes the car brands Lancia and Alfa Romeo, said
trading profit at its truck unit Iveco jumped 34 per cent to 190
million euros ($270.8 million), while trading profit at its CNH farm
machinery business rose 88 per cent to 225 million euros ($320.7
Shares in Fiat fell 0.4 per cent to 22.9 euros ($32.64) after
first moving higher on the results. They have risen 59 per cent this
year as investors become increasingly confident that under CEO
Sergio Marchionne the company has returned to lasting financial
Marchionne has been pursuing a strategy of industrial alliances
and joint ventures to share costs and enter key markets. The group,
once failing, returned to profitability in 2005.