Fiat Posts Q1 Financial Results

With only a few hours prior to the release of the much anticipate five year business plan, Italian carmaker Fiat released its financial results for the first quarter of the year. According to the numbers, Fiat had a net loss of 25 million euros, much smaller than the 410 million euros lost in the same period of 2009. The tripled income taxes also contributed to the loss.

"Sales volumes for the automobiles and components businesses in Italy, in particular, continued to reflect demand generated by government-sponsored incentives introduced in 2009," Fiat says in a release.

"The group expects all of its sectors to improve performance over the prior year, with the exception of the automobiles business."

The group's revenues were up 14.7 percent, rising to 12.9 billion. Fiat Group Automobiles contributed 6.8 billion euros, 22.1 percent more than last year, Agricultural and Construction Equipment added 2.6 billion, while Trucks and Commercial Vehicles reported an 11.2 percent increase to 1.7 billion.

Fir the year ahead, Fiat expects "all of its Sectors to improve performance over the prior year, with the exception of the Automobiles business." According to estimates, the elimination of eco-incentives programs later in 2010 will strongly affect the automobile business of the Fiat Group.

Fiat's targets for 2010 are revenues in excess of 50 billion euros, a trading profit of 1.1 to 1.2 billion euros, a net profit at least near break even and a net industrial debt above 5 billion euros.