Fiat quarterly trading profit falls 26 percent

Earnings before interest, taxes and one-time gains or costs, which Fiat calls trading profit, declined to 488 million euros (US$692 million) from 663 million euros in 2008, beating analysts' estimates, the Turin-based company said today in a statement. Revenue increased unexpectedly to 13.6 billion euros from 13.1 billion euros.

Chief Executive Officer Sergio Marchionne is scheduled in April to detail production and savings from Fiat's alliance with Chrysler, the third-largest U.S.-based carmaker. This year Fiat is rolling out reduced-emission Multi Air engines to more of its cars, introducing a 500-model subcompact with a new 2-cylinder engine and beginning sales of the Alfa Romeo-brand Giulietta hatchback.

“The car market will depend on incentives, and there aren't a lot of new Fiat models in the pipeline.” Marco Cristofori, an analyst with Centrobanca in Milan with a “hold” recommendation on the shares, said before the figures were released. “Fiat won't do quite as well in 2010 as it did last year.”

Trading profit had been projected at 462 million euros, the median estimate of 13 analysts surveyed by Bloomberg. Fiat had been expected to report revenue of 12.9 billion euros, the median of 19 estimates.

Fiat rose as much as 28 cents, or 2.8 percent, to 10.18 euros and was up 1.1 percent as of 12:30 p.m. in Milan trading.

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