Fiat reports 3rd straight quarterly loss

[October 21, 2009]  MILAN (AP) -- Italian automaker Fiat Group SpA on Wednesday posted its third straight quarterly loss due largely to falling sales of trucks and farm and construction equipment.

Fiat reported Wednesday that it lost euro168 million ($251.5 million) in the third quarter -- despite a 10 percent increase in auto sales due largely to cash-for-clunkers schemes that rewarded its small cars and fuel-efficient engines.

That compares with revised quarterly net profit in 2008 of euro604 million.

Group net revenues were down 15 percent at euro12 billion compared with euro14.3 billion in the same period last year 2008.

"The global economic slowdown continued to have a significant impact on demand for all group business," Turin-based Fiat said in a statement. "However, the level of decline in some markets was more contained than for the first half, where performance was particularly negative."

Fiat sells cars under the Fiat, Lancia and Alfa Romeo brands. Fiat also produces the Maserati and Ferrari brand cars.

Fiat took over a controlling share of Chrysler LLC in June.

CEO Sergio Marchionne is set to announce Chrysler's five-year business plan, including a new array of small cars using Fiat technology, on Nov. 4.

Fiat shares dropped 5 percent to euro10.60 in trading on the Milan Stock Exchange.

Fiat Group Automobile revenues were down 1.4 percent to euro6.4 billion, despite an increase in sales of cars and light commercial vehicles over the same period a year earlier. Fiat increased its market share in Europe to 8.3 percent and outpaced the Brazilian market, which rose 7.8 percent, to take a nearly one-quarter market share.

CNH, Fiat's farm and construction business, continued to show weakness, with revenues down 27 percent to euro2.3 billion "due to persistent significant declines in the global construction equipment industry. The Iveco truck business reported a 29 percent decrease in revenues to euro1.7 billion due to general market weakness that saw deliveries plunge 35 percent.

Fiat has reported three straight quarters of losses due to the severe impact of the world economic crisis on auto sales worldwide, following a 15-quarter run of profits.

[Associated Press; By COLLEEN BARRY]

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