Fiat Posts Small Profit Thanks to Chrysler

Fiat SpA posted a €358 million ($437 million) net profit in the second quarter of this year compared with €1.2 billion ($1.5 billion) a year earlier. But without the contribution of its Chrysler unit, the company swung to a €246 million ($300 million) net loss from a €1.4 billion ($1.7 billion) profit a year earlier.

Group revenue jumped 64% to €21.5 billion ($26.2 billion) in the April-June period. Excluding Chrysler, revenue slid 8% to €9.2 billion ($11.3 billion), in part because of declining demand for Fiat's passenger and light commercial vehicles in Europe.

Earnings before interest, taxes and one-time items was €995 million ($1.2 billion), or €102 million ($124 million) without Chrysler. Fiat consolidated Chrysler results in June 2011, which complicates year-over-year comparisons of group results.

In Europe, the group lost €184 million ($225 million) before interest taxes and one-time items in the April-June period. Revenue fell 6% to €4.9 billion ($6 billion), and volume declined 13% to 301,000 vehicles. Fiat and Chrysler brands held a 6.6% share of the European market in the first half of 2012, down 0.8 points year on year.

Group EBIT softened to €238 million ($290 million) in Latin America but rose to €744 million ($908 million) in North America and €60 million ($73 million) in Asia Pacific.

The company left its full-year outlook unchanged at revenue of more than €77 billion ($94 billion) and net profit of €1.3 billion-€1.5 billion ($1.6 billion-$1.8 billion).

Fiat plans to address issues of capital and capacity utilization after the third quarter, based on government progress in resolving Europe's financial crisis. The company says it is maintaining an "inordinate" €22.7 billion ($27.7 billion) of liquidity as a cushion against financial market volatility.