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Fiat Profit Plummets 88%
Fiat SpA reported net earnings of €31 million ($41 million) in the January-March period of 2013 compared with €262 million ($343 million) a year earlier.
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Fiat SpA reported net earnings of €31 million ($41 million) in the January-March period of 2013 compared with €262 million ($343 million) a year earlier. Revenue and vehicle sales both dipped 2% to €19.8 billion ($25.9 billion) and 510,000 units, respectively.
Fiat attributes the declines to sharply lower demand in Europe and a smaller profit contribution from its Chrysler unit, where the cost of new-model launches dragged down income.
But without Chrysler, the company would have posted a €235 million ($307 million) net loss in the first quarter compared with a €276 million loss ($361 million) in the same period of 2012.
Fiat held €9.1 billion ($11.9 billion) in cash on March 31, virtually unchanged from three months earlier. Net automotive debt grew to €7.1 billion ($9.3 billion) from €6.5 billion ($8.5 billion) on Dec. 31.
The company says pricing pressure and weak demand are likely to depress its European profits for some time. But Fiat affirms its previous full-year outlook for group net earnings of €1.2 billion-€1.5 billion ($1.6 billion-$2 billion) on revenue of as much as €92 billion ($120 billion).
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