Chrysler Contribution Saves Fiat from Net Loss

Fiat SpA netted €379 million ($500 million) in the first quarter of 2012 compared with €37 million ($49 million) a year earlier.

But without the profit contribution of Chrysler, in which Fiat holds a 58.5% stake, the Italian carmaker would have recorded a €273 million ($360 million) net loss. Trading profit soared to €866 million ($1.1 billion) from €251 million ($331 million). Fiat did not consolidate Chrysler results in the first quarter of 2011.

Fiat revenue in the quarter jumped to €20.2 billion ($26.7 billion) including €11.5 billion ($15.2 billion) from Chrysler from €9.2 billion ($12.1 billion) a year earlier. Worldwide volume in the quarter topped 1 million units compared with 519,000 units a year earlier.

The company says revenue in Europe fell 8% to €4.5 billion ($5.9 billion), mainly because of 20% drop in its vehicle sales there. The overall European market slid only 7%. Fiat notes a trucking strike in Italy exacerbated its volume decline in Europe.

Higher capital spending increased automotive debt (minus cash) to €5.8 billion ($7.7 billion) from €5.5 billion ($7.3 billion) at the end of 2011. Fiat says Chrysler's free cash flow mostly offset the cash outflow at the rest of the company.