UK: Fiat expected to return to profit
Fiat Group is widely expected by analysts to announce a return to trading profitability when its second quarter results are issued tomorrow (Wednesday, July 22).
Sabine Blümel, an analyst with Creative Global Investments (LLC), told just-auto that she expects Fiat Group to show a Q2 EUR190m trading profit (1.2% margin), after an EUR30m loss in the first quarter.
"The result will be driven by improvements at all core divisions, with the exception of trucks. We expect FGA, the auto division, to swing to profit - it has been a main beneficiary of incentive programmes in Europe, thanks to its A-segment cars 500 and Panda that are both assembled in Poland where a weaker zloty has protected FGA's margins despite its aggressive pricing policy aimed at gaining market share."
Blümel says that an additional positive was a 5% y-o-y increase in registrations in Brazil, a market that has traditionally provided double-digit profit margins.
She also told just-auto that she hopes, but does not necessarily expect, that Sergio Marchionne, CEO of Fiat and Chrysler, will tomorrow also outline his strategy for the Fiat-Chrysler alliance that was entered into on June 10th.