Fiat keeps target for 2012 profits but at bottom end of range

Analysts had expected a net profit of 250 million euros.

In a statement it forecast a net profit of 1.2 billion euros ($1.55 billion) in 2012 on a turnover of 83 billion euros ($107 billion), or "the bottom end of the range" suggested until now.

Turnover was 20.4 billion euros, a 16-percent annual rise, with major regional variations. Sales were down in Europe, the Middle East and Africa but rose in other regions.

At the end of July Fiat said that its net profit in the second quarter had plunged to 358 million euros ($440 million) despite a rise in operating profits due to its newly-acquired US arm Chrysler.

At that time the group said its performance in the first half of the year meant it could confirm its annual forecast for a net profit of 1.2-1.5 billion euros and sales of more than 77 billion euros.

Fiat has repeatedly warned it may be forced to shut down one its five massive Italian plants, which are all producing well below capacity because of a slump in European car sales that has hit Italy particularly hard.

In September the company said it was dropping a strategic plan it had announced in 2010 to invest 20 billion euros and produce 1.4 million cars in Italy by 2014.

Fiat said it could no longer meet the targets because the economic crisis had brought car sales in Italy back down to their level of 40 years ago.

Source: AFP via I-NET Bridge