Wednesday, 21 July 2010 at 10:30, Reuters, Milan
Italian carmaker Fiat beat forecasts by more than doubling its second-quarter trading profit, as it managed to cut costs and sell more higher-priced items in tough markets.
Fiat, which has a 20 per cent stake in US carmaker Chrysler, said it would probably ask shareholders to approve the separation of its industrial business from the cars unit on September 16, with the demerger date still set for January 1.
Fiat said on Wednesday trading profit for the second quarter rose to €651m ($841m) from 310m a year ago, on net revenues up 12.5 per cent to 14.8bn.
The average forecast for trading profit was €380m, according to a consensus of analysts canvassed by Fiat.
Fiat said there was "a significant ... improvement in trading margin to 4.4 per cent attributable to higher volumes, improving sales mix and continued benefits from cost containment measures".
It said net industrial debt decreased by €1bn to 3.7bn and liquidity rose to 13.5bn from 11.2bn at the end of the first quarter.
"It is highly probable ... that Fiat will upgrade guidance for 2010 when announcing third-quarter results," it said.
Fiat said Fiat Industrial Group had received a "highly confident" letter from a group of banks for up to €4bn of financing.
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