Fiat SpA chief executive Sergio Marchionne on Thursday reportedly said the automaker would reach its earnings targets for 2005, the year it has repeatedly said it would return to profit.
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Fiat is due to release its 2005 results on Monday, The Associated Press (AP) said, after posting a net profit in the first half of EUR510m (US$627m), thanks to one-time gains, compared with a loss of EUR638m ($784m) in the same period in 2004.
Marchionne made the comment while attending a conference in Milan, the news agency said.
AP added that Fiat shares have rallied in recent months on optimism the company’s turnaround plan was making progress though they plummeted more than 5% last Friday after bank shareholder Sanpaolo IMI unexpectedly sold a 3.55% stake on the open market.
Asked if he had received word from other shareholder banks, Capitalia SpA and Banca Intesa SpA, on whether or not they would sell their stakes, Marchionne told The Associated Press: “The banks have confirmed their commitment to Fiat in the medium and long term.”
