Fiat Net Earnings Surge 82%

Fiat SpA boosted net income to €435 million in the second quarter of 2013 from €239 million a year earlier.

Revenue grew 4% to €22.3 billion. Vehicle sales rose 5% to 1.2 million units as a 3% decline in Europe was offset by gains in all other regions.

Trading profit (earnings before interest, taxes and one-time items) climbed 9% to €1 billion in the quarter, buoyed by cost cutting in Europe, growing profit in Asia Pacific and a €904 million contribution from affiliate Chrysler.

Without Chrysler's contributions, Fiat would have posted a €247 million net loss in the April-June period, about the same as a year earlier.

In Europe, the company narrowed its trading loss 29% to €98 million. Quarterly revenue in the region slid 3% to €4.8 billion. Fiat's European market share dropped a half-point year on year to 6.3%.

Latin American trading income contracted 6% year on year to €224 million in the second quarter despite an 8% revenue gain to €2.8 billion. Trading profit edged up 1% to €668 million in North America, where revenue rose 5% to €11.5 billion. Trading earnings nearly tripled to €99 million in Asia Pacific. Revenue there soared 46% to €1.1 billion.

Fiat, excluding Chrysler, shrank both its automotive debt and cash position 2% from the previous quarter to €18 billion and €8.9 billion, respectively.

Fiat Group reiterates its 2013 outlook for revenue of as much as €92 billion, net income as high as €1.5 billion and trading profit of as much as €4.5 billion. But Chrysler's reduced full-year earnings forecast caused analysts to worry that Fiat profit might slip as a result.