Fiat posts 375-million-euro second quarter trading profit

Jul 26, 2011, 14:41 GMT

Turin, Italy - Italian car maker Fiat reported Tuesday a second-quarter trading profit of 375 million euros (539 million dollars), up 22.1 per cent from the same 2010 period.

The Turin-based company in a statement noted how its luxury brands Ferrari and Maserati benefited from higher volumes and in particular, how trading profit was driven by a strong performance by its components systems, including the Magneti Marelli brand.

Fiat also reported a net profit of 76 million euros, an increase of 68 million over the second quarter of 2010.

Tuesday's second quarter results also for the first time included Fiat results consolidated with those - from June 1 - of US car maker Chrysler, the Detroit-based company of which Fiat holds a 53.5 per cent share.

Sergio Marchionne, the chief executive of both companies, has said he aims to merge Fiat and Chrysler to reduce costs and achieve a target of more than 100 billion euros in annual turnover by 2014.

Marchionne has also unveiled plans to share technology, and manufacturing plants between Fiat's Fiat and Alfa Romeo brands and those of the US group's Chrysler, Jeep and Dodge.

On Tuesday Fiat forecast a consolidated 2011 trading profit - earnings before interest, tax and one-off items - of about 2.1 billion euros and revenue or sales, of more than 58 billion euros.

Fiat's previous target, which did not include Chrysler, was for a trading profit of around 1.2 billion euros and 37 billion euros in sales.