Fiat fourth-quarter net income is powered by truck, tractor sectors

Jan 27, 2011, 12:52 GMT

Turin, Italy - Italian carmarker Fiat on Thursday posted a fourth-quarter net income of 318 million euros (437 million dollars) - its third straight quarterly profit, one boosted by the performance of its truck and tractor sectors and demand for cars in Brazil.

The 2010 fourth-quarter net income compared with a 283-million euro loss in the same period year earlier, the Turin-based industrial group which also operates US carmaker Chrysler said in a statement.

Sales rose 10 per cent to 15 billion euros, Fiat. The company's fleet includes the Fiat Punto and Fiat 500 as well as Lancia, Alfa Romeo and Maserati-branded cars.

Full-year trading profit - earnings before interest, taxes and one-time items - was 2.2 billion compared to 1.1 billion for 2009, Fiat said.

The company noting the importance of 'a notable recovery in demand for light commercial vehicles and a significant contribution from Brazil.'

The results are for Fiat Group before the company spun off its industrial businesses into Fiat Industrial SpA this month.

Chief Executive Officer Sergio Marchionne, the 58-year-old Italian-Canadian who is credited for leading Fiat's recent turnaround, separated the company trucks (Iveco) and tractors (New Holland) units to focus on reviving carmaking operations, including investments in several Italy-based plants.

Marchionne, who aims to improve productivity, this month won controversial workers' concessions over a 1-billion-euro plan to revamp Fiat's historical Mirafiori factory in Turin.

Fiat, Europe's 6th largest automaker by market share, boosted its stake in Chrysler to 25 per cent this month and could take a bigger holding before a listing by the end of the year.

Marchionne has unveiled plans for building at Mirafiori Chrysler Jeep branded SUV and Alfa Romeo sports sedans.

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