It seems to be the first official impact of Sergio Marchionne’s decision of cutting investment in Europe. Fiat said today that loss before interests and taxes during the second quarter of 2012 in Europe, Middle East and Africa was 184 million euros ($226 million) compared to 406 million loss in the first half of 2011. It is certainly a good news taking into account the tough times the industry is facing in Europe and the bad results most of Fiat models have had in the same period. If it is included Chrysler results total group’s trading profit was 1.01 billion euros from 525 million one year ago. That result allows Fiat to maintain its forecast of trading profit for the whole year from 3.8 billion euros up to 4.5 billion. According to the Press Release for the second quarter of 2012, all regions had positive results except Europe, which had less loss in the second quarter than in the first one. Total incomes show the strong growth in North America and Asia, a slowdown in Latin America, no matter the good result Fiat had in Brazil during June, and of course the bad moment of Europe, Middle East and Africa (EMEA) as a result of European economic crisis. As said begore total earnings was 1 billion euros thanks to good performance of Chrysler in North America and Asia, while Europe reduced its losses around 70 million euros compared to Q1. Good results for Ferrari and Maserati with earnings rising 16%. More than 1.1 million cars were delivered in the same period. Total debt decreased to 5.4 billion euros when at the end of Q1 it was 5.8 billion. Liquidity improved and rised 1.3 billion euros from March 31st, and all that allows Fiat to confirm the whole year forecasts, no matter the bad perspectives for European market. As long as there are June results for Fiat in Denmark I will show a complete analysis of the group’s registration during the first semester of 2012.
Source: Bloomberg and Comunicato Stampa Fiat SpA 2 trimestre 2012. Illustration by storiediauto.org