Friday, January 26, 2007

Fiat Making Steady Profits in Auto Sector

For any auto company, making profit in this age is a tough challenge. Yes, making profit may not be that tough but having consistent performance in the market is a tough challenge. So, Fiat bosses should celebrate the news that its auto unit is improving consistently.

IHT reported:

Fiat on Thursday reported an eighth consecutive quarterly profit on rising sales of the Grande Punto hatchback and increased truck demand.

Fourth-quarter net income rose to €452 million, or $586.8 million, from €38 million a year earlier, the company said. Sales increased 5.5 percent to €13.9 billion. The auto unit reported an annual profit for the first time in six years.

Fiat, based in Turin, Italy, will introduce the new compact Bravo model next week in an effort to win more customers in the most competitive segment of the European car market. The chief executive, Sergio Marchionne, brought the group back to profit in 2005 for the first time in five years with higher sales, cost cuts and changes in top management.

There has been a positive influence on the price of shares of Fiat. It has been increasing consistently for nearly a year.