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Fiat reports 23% fall in first quarter profit

Car maker blames costs for new Jeep model rollouts

Fiat’s trading profit declined to €618 million from €806 million a year earlier, the company said. Photograph: Reuters/Mansi Thapliyal
Fiat’s trading profit declined to €618 million from €806 million a year earlier, the company said. Photograph: Reuters/Mansi Thapliyal
Tue Apr 30 2013 - 05:00

Fiat, the Italian automaker that controls Chrysler Group, said first-quarter profit fell 23 per cent on costs for new Jeep model rollouts.

Trading profit, or earnings before interest, taxes and one- time items, declined to €618 million from €806 million a year earlier, the company said yesterday.

First-quarter profit at the US automaker fell 27 per cent to €593 million ahead of the introduction of new Jeep Compass and Cherokee sport-utility vehicles.

Fiat stuck to a target to increase full-year profit to between €4 billion and €4.5 billion from €3.81 billion in 2012, even after the European auto market plunged 9.7 per cent in the first quarter.

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The stock has gained 22 per cent this year, valuing the carmaker at €5.8 billion. – (Bloomberg)