Fiat doubled its core operating profit to €47 million and narrowed losses at its key auto arm to €129 million against a forecast loss of €170 million, Reuters reported.
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Fiat on Tuesday reportedly said that cost savings and a policy of selling fewer cars at higher profit per unit had cut Fiat Auto’s trading loss by 11.6% from a year ago, despite a 9.3% drop in revenues to €4.62 billion.
The news agency said Fiat’s first-quarter group operating income included the first instalment of a $US2 billion split-up settlement with General Motors, for a profit of €729 million, more than 10 times the year-ago figure.
But Reuters noted the payment allowed Fiat to post a net profit of €293 million against a loss of €392 million a year ago – without GM’s cash, Fiat’s would have posted a net loss of €245 million.
