Italy's Fiat reports 13.6 per cent rise in first-quarter profit

Turin, Italy  -  Italian industrial group Fiat reported Thursday a 13.6 per cent rise in first-quarter profit over the previous year - a surge it described as driven by car sales abroad and higher deliveries of its trucks and farm tractors.

Net profit before minority interests totalled 427 million euros (681 million dollars) from 376 million euros a year earlier, the Turin-based Fiat said in a statement.

Sales were up by 9.9 per cent to 15.03 billion euros, it said.

"Continued success of new and existing models enabled Fiat Group Automobiles to achieve growth, with a total of 563,600 units delivered during the quarter" a 4.1 per cent increase over the same period in 2007, Fiat said.

The group owns the Fiat - including the Punto, Bravo and Fiat 500 models - brand, as well as Alfa Romeo, Maserati and Ferrari.

Following the announcement of the results, Fiat shares on the Milan stock exchange rose by mid-morning, to as much as 40.6 euro cents, or 3 per cent, to 13.95 euros.

Fiat ended four years of losses in 2005 when it released a slew of new models and began cutting costs by sharing more components among cars and with competitors.

On Thursday the company said its automotive unit posted 8.8 per cent growth in quarterly revenue to 7.4 billion euros.

Despite lower overall demand in Western Europe, including a 12 per cent slump in sales in Italy - Fiat's largest market - the automotive unit reported "notable year-over-year increases" in Germany and France with increases of 15 and 27 per cent respectively, the company said.

Fiat delivered 35 per cent more cars in Brazil, boosting the company's market share in the biggest South American economy to almost 26 per cent.

The company's farm-equipment unit, CNH boosted revenue 10 per cent to 2.96 billion euros, while sales at truck unit Iveco rose 18 per cent to 2.93 billion euros, boosted by deliveries in Eastern Europe and Latin America, the company said.

The carmaker raised its 2008 sales forecast to 60 billion euros in January. (dpa)

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