Fiat posted a 9.1% growth in profits in the first quarter of 2011 thanks to Ferrari

Article by Christian Andrei, on April 19, 2011

Italy-based automaker Fiat S.p.A. recorded a 9.1 percent growth in profits in the first quarter of 2011, with the profitability of its Ferrari brand and the strong demand in Brazil identified as contributing factors to the increase, the company disclosed in a statement on Wednesday. The company reported its first results as a standalone entity after the spinoff of its industrial businesses into Fiat Industrial S.p.A. in January.

Specifically, the company gained a market share of 22.6 percent during the quarter. The Ferrari is also the company’s most profitable subsidiary, which will start delivering its first family car models by next month.

Analyst Andrea Balloni at Fidentiis Equities SA analyst in Milan stated in a note to investors ahead of the earnings that the performance of the Ferrari brand and the Brazilian market offsets greatly the weak vehicle market in the company’s home base, Italy. Revenue reached 9.2 billion euros, an increase of 7.1 percent.

The company’s so-called trading profit, which is earnings before interest, tax and one-time items, increased from 230 million euros last year to 251 million euros in the first quarter. The profits exceeded the 241 million-euro average forecast of 14 analysts that Bloomberg previously surveyed. Fiat reiterated that trading profit in 2011 will be between 900 million euros and 1.2 billion euros.

Earlier this year, CEO Sergio Marchionne listed Fiat's tractors and trucks units into a separate company to focus on vehicle manufacturing. Last week, Fiat increased its holding in U.S. carmaker Chrysler to 30 percent.

Fiat’s shares rose to 6.59 euros, as high as 31 cents, or 4.9 percent, and was up 4 percent as of 12:12 CET in Milan trading today. The shares have dropped 1.3 percent this year, valuing Fiat at 8.2 billion euros.

Topics: fiat, profit

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries