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Fiat Net Profit Surges on Chrysler Contribution
Fiat SpA netted €379 million in the first quarter of 2012 compared with €37 million a year earlier.
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Fiat SpA netted €379 million in the first quarter of 2012 compared with €37 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 net loss. Trading profit soared to €866 million from €251 million. Fiat did not consolidate Chrysler results in the first quarter of 2011.
Fiat revenue in the quarter jumped to €20.2 billion including €11.5 billion from Chrysler from €9.2 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, 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 the volume decline in Europe.
Higher capital spending increased automotive debt (minus cash) to €5.8 billion from €5.5 billion at the end of 2011. Fiat says Chrysler's free cash flow mostly offset the cash outflow at the rest of the company.
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