Fiat surprises with profit leap

Fiat surprises with profit leap
Fiat's turnover has grown by 4 percent in 12 months. Photo: Rosie Scammell/The Local
Italian auto giant Fiat reported a huge increase in second-quarter profit on Tuesday but its share price plunged after US partner Chrysler revised down its 2013 financial targets.

 Fiat said its net earnings came in at €435 million – 82 percent more than in the same quarter last year.

This was more than had been expected by analysts polled by Dow Jones Newswires who had forecast a result of €305 million.

Without counting the Chrysler accounts, however, Fiat clocked a net loss of €247 million – about the same as in the second quarter of 2012.

Fiat also said its turnover had grown by 4 percent to €22.3 billion over the 12-month period, while debt had gone down to €6.7 billion.

The group confirmed its targets for 2013.

It forecast a net profit this year of between €1.2 billion and 1.5 billion and a turnover of between €88 billion and €92 billion.

On the Milan stock exchange, trading in Fiat shares was suspended after they plunged 4.76 percent, while the benchmark index was up 0.55 percent.

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