Fiat almost doubled its trading profit to €47 million in the first quarter as its core car arm narrowed operating losses year-on-year and beat forecasts.
Fiat Auto, the source of most investors' concerns, shrank its losses to €129 million from €146 million a year earlier against a consensus estimate for a €170 million loss.
The trading results are a benchmark of day-to-day operations under new IFRS accounting standards.
Under IFRS, operating income included the first tranche of a $2 billion split-up settlement with Fiat's former partner General Motors and bulged at group level to a profit of €729 million, more than 10 times the year-ago figure.
Fiat Auto's revenues fell to €4.62 billion from €5.10 billion in the first quarter of 2004. At group level, including Fiat's truck to components activities, revenues fell to €10.76 billion from €11.02 billion.
The GM payment allowed Fiat to post a net profit of €293 million against a loss of €392 million a year ago.