Italian carmaker Fiat Group (FIATY.PK) reported Wednesday a profit for the fourth quarter that grew 46 percent from last year, reflecting double-digit revenue growth amid strong demand in the NAFTA and APAC regions.
Looking ahead, the company reiterated its financial outlook for the full-year 2013 despite the continued uncertainty in the European markets. The company confirmed its targets underpinning the Groups development plans presented in October 2012 as NAFTA, LATAM and APAC regions’ markets continue to support the financial projections.
Turin, Italy-based Fiat Group took control of Chrysler under a U.S. government-brokered bailout deal in 2009, and in early January 2012 raised its stake in the U.S. car maker to 58.5 percent in several tranches from the initial 20 percent it initially held. Chrysler’s results were consolidated by Fiat Group since June 2011.
Fiat Group’s fourth-quarter net income increased to 388 million euros from 265 million euros in the year-ago quarter. Excluding items, adjusted net income was 500 million euros, compared to 322 million euros last year.
Trading profit for the quarter rose 29 percent to 987 million euros from 765 million euros in the year-ago quarter, reflecting continued strong performance for Chrysler brands in NAFTA and APAC.
Net revenues for the quarter grew 11 percent to 21.78 billion euros from 19.64 billion euros in the same quarter last year.
Revenues reflect strong growth in NAFTA, APAC and LATAM, partially offset by a decline in EMEA due to the continued deterioration in the European economy.
In the NAFTA region, comprising the U.S., Canada, and Mexico, revenue for the quarter grew more than 25 percent from last year to 11.41 billion euros. Vehicle shipments increased 16 percent to 543,000 units, and vehicle sales grew 10 percent to 478,000 units.
In LATAM, consisting of South and Central America but excluding Mexico, revenue increased more than 5 percent to 2.90 billion euros. Shipments increased 14 percent to 227,000 units.
Asia Pacific or APAC revenue surged more than 42 percent to 821 million euros, with shipments also rising 37 percent to 26,000 units.
In Europe and Middle East, and Africa, or EMEA, revenue declined 10 percent to 4.55 billion euros. Shipments were down 10 percent to 248,000 units.
Fiat’s luxury and performance brands increased revenues by 6 percent to 793 million euros, while components segment revenues were down 1 percent to 2.04 billion euros, mainly due to the weakness of the European car industry.
For fiscal 2012, net income decreased to 1.41 billion euros from 1.04 billion euros in the year ago. Excluding items, adjusted net income was 1.66 billion euros, compared to a loss of 780 million euros last year. Group net revenues increased 40 percent to about 83.96 billion euros from last year.
Additionally, the Board of Directors has decided not to recommend a dividend payment on Fiat shares, given the Company’s desire to maintain a high level of liquidity and the existence of certain restrictions on the ability of Chrysler to pay dividends to its members.
Looking ahead to fiscal 2013, Fiat confirmed its financial guidance. The company still anticipates net profit for the year between 1.2 billion euros and 1.5 billion euros, and annual revenues between 88 billion euros and 92 billion euros.
In Wednesday’s regular trading session, FIATY is currently trading at $6.17, down $0.16 or 2.53% on a volume of 51,279 shares.
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by RTT Staff Writer
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