Fiat Up 6.7% In Quarter And Optimistic On Year

Fiat, Italys largest private-sector company, Monday reported a 6.7 per cent rise in first-quarter consolidated pre-tax earnings to L495 billion ($290 million). Group sales were up 4.4 per cent at L20,844 billion.The group has benefited this year from government incentives to encourage new car sales in Italy.

These lifted domestic demand by more than 20 per cent in March, by more than 50 per cent in April and nearly 45 per cent in May, Cesare Romiti, Fiat chairman, told the annual meeting in Turin.

Romiti said group sales were expected to rise 15 per cent this year, from L77,900 billion in 1996 to about L90,000 billion.Car revenues were forecast to grow by L9,000 billion, or 21 per cent, while revenues from the New Holland farm machinery subsidiary would rise by L1,500 bn, or 16 per cent. Iveco truck sales were expected to improve by L800 billion, or 8 per cent.

 

He said operating income was also forecast to grow strongly this year, while pre-tax earnings would be in line with last years L3,805 billion despite the absence of extraordinary gains.

These improvements would be reflected in the groups net financial position, which was expected to be positive at the end of this year,according to Romiti, who also confirmed he would step down as chairman next June, at the age of 75. He said that there were no plans for a capital increase.

In 1996, Fiats profits were helped by L1,400 billion of extraordinary gains from the flotation of a 31 per cent stake in New Holland and the sale of the Prime fund management group to Assicurazioni Generali. The groups unit car sales rose 8.2 per cent in the first five months of this year to 1.12 million vehicles.

, with a 21 per cent increase in Italy reflecting the introduction of the government incentives.