Fiat SpA, the carmaker that acquired 20 percent of Chrysler Group LLC last year, reported its first profit in three quarters on increased sales of Iveco trucks and New Holland tractors.
The stock rose the most in 10 weeks in Milan. Second- quarter net income was 90 million euros ($116 million), compared with a 168 million-euro loss a year earlier, Fiat said today. Earnings before interest, taxes and one-time gains or losses more than doubled to 651 million euros, beating the 359 million- euro average estimate of analysts compiled by Bloomberg.
Fiat said today it may raise its full-year forecast as a recovery in demand for the Turin-based company’s trucks and agricultural equipment made up for a slump in European car sales following the end of "cash-for-clunker" government incentives. Chief Executive Officer Sergio Marchionne, 58, is holding back on new models this year as the auto industry emerges from its worst crisis in decades.
"These are very good numbers," said Philippe Houchois, an analyst at UBS AG in London who has a "neutral" rating on the shares. "The beat probably comes from the light commercial vehicles, for example the Fiat Ducato, which can be very profitable."
Fiat confirmed today its forecast for full-year revenue of more than 50 billion euros and a trading profit of 1.1 billion euros to 1.2 billion euros.
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