ITALY: Fiat Industrial Q2 profit rises

By Graeme Roberts | 1 August 2013

Truck and tractor maker Fiat Industrial has reported a rise in second quarter net profit due to higher margins at its farm machinery business and a slight improvement in trucks.

Heavy truck markets are slowly picking up due to a need to replace ageing fleets bought during the boom years before the 2008 financial crisis, Reuters noted.

The company said revenues were up 3.1% to EUR6.8bn (US$9.01bn) with net profit up to EUR328m from EUR251m.

Revenue at truck unit Iveco, which accounts for about one third of group sales, fell 5.6% to EUR2.14bn.

Iveco returned to a trading profit in the second quarter, earning EUR1m compared with a trading loss of EUR9m in the first quarter. But compared with the second quarter of last year, trading profit was down.

Fiat Industrial and CNH's planned merger should be complete in early September, executives have said.