Latest Automotive News

Subscribe in a reader

Fiat reports first full year net profit since 2000

Email   small font medium font large font


MILAN (AP) _ Fiat SpA posted a fourth-quarter profit of 38 million euros ($46.3 million US) on Monday and said it had a net profit for the full year for the first time since 2000 on gains from asset sales and progress at its core auto division.

The quarterly profit compared with a loss of 550 million euros in the same quarter a year earlier. The Turin-based maker of cars and trucks also said it earned 1.33 billion euros ($1.62 billion) in 2005, reversing a 1.63-billion-euro loss in 2004.

That was ahead of analysts' forecasts of a net profit of 1.35 billion euros ($1.64 billion), and Fiat shares were up 1.1 per cent to 8.24 euros ($9.97) in Milan trading.

Fourth-quarter revenue rose 7.5 per cent to 13.14 billion euros ($15.89 billion) from 12.22 billion euros a year earlier, while full-year revenue increased two per cent to 46.54 billion euros ($56.29 billion) from 45.64 billion euros.

The profit is a boost for CEO Sergio Marchionne, less than a year after he took the helm of the ailing auto division and pledged to cut costs.

Moody's Investors Service changed Fiat's outlook from negative to stable due to its improved operating performance and a ``sizable reduction'' in its industrial net debt, which was 3.2 billion euros ($3.9 billion) _ down from 9.4 billion euros at the end of 2004.

``The recent trend improvements at Fiat Group, most notably over the last 12 months, will need to be sustained and closely controlled if Fiat is to strengthen its overall financial profile on a more permanent basis,'' Moody's said in a statement.

``The success of new models from within Fiat Auto, in particular the Grande Punto and a new C-segment model, the ability to reorganize sales channels across its key geographies and the success of recently announced ventures and associations with other auto groups will also play a central role in the future shape of Fiat Auto's profile,'' it added.

In November, Fiat and Ford Motor Co. said they had signed an agreement to collaborate on small cars, completing a deal to codevelop new models due in 2007 and 2008.

Also Monday, Fiat also said it plans to issue a seven-year euro bond, the Italian carmaker's first debt issue to capital markets since it lost its investment grade credit rating in late 2002. The company said it would decide the amount and price of the bond issue according to market conditions.

Receive the latest automotive news by email!

Enter your email address:

Related news
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 ...
Fiat SpA reported a 76 per cent drop in third-quarter earnings Thursday compared to results inflated by one-time gains a year ago. But its core automaking division posted its fourth ...
ROME (AP) _ Fiat SPA said Monday second-quarter earnings rose 56 per cent as it extended a turnaround and strong sales of its flagship compact car led to the third straight quarterly ...
MILAN, Italy (AP) _ Fiat SpA said Monday that its net income more than doubled in the first quarter, due largely to growth in its flagship auto and trucks businesses. ...
Fiat SPA reported Thursday that its net profit soared in the fourth quarter as the core auto division posted a nearly five-fold earnings gain, allowing it to pay a dividend ...
Japan's troubled Mitsubishi Motors on Monday reported a narrower net loss of 16.1 billion yen (US$137 million) for fiscal first-half, compared to the same period last year, helped by favourable ...
Luxury sports car maker Porsche AG said Monday that its net profit for fiscal 2007 more than tripled with help from a revaluation of its 22 per cent stake in Volkswagen AG ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!

Fiat reports first full year net profit since 2000
> © 2006-2017 except where otherwise noted