Fiat quarterly earnings gains, powered by Ferrari sales, Brazil

April 20, 2011, 7: 00 am EDT by Tommaso Ebhardt

(Updates whose net income in the seventh paragraph)

April 20 (Bloomberg) - Fiat SpA, the Italian manufacturer which runs Chrysler Group LLC, reported first-quarter profit gained 9.1% powered by the Ferrari brand and demand in Brazil.Earnings, before interest taxes and non-recurring items, which Fiat calls operating profitsAdvanced to 251 million euros (364 million dollars) to 230 million euros a year earlier, the company based in Turin, said today. Profit exceeded the euro 241 million an average estimate of 14 analysts interviewed by Bloomberg.Chief Executive Officer Sergio Marchionne, 58, listed units of trucks and tractors Fiat in a separate company earlier this year to concentrate on carmaking. Fiat said Brazilians deliveries in the first quarter increased by 8%. Trading profit to Ferrari, which will begin to deliver its first family car next month, jumped 36%. "The Brazilian market and Ferrari more than offset weak Italian car market,"Andrea Balloni, an analyst with Fidentiis Equities SA in Milan with a rating of "buy" on the stock, said in a note before investors to pay.Fiat has increased as much as 35 cents, or 5.5%, to EUR 6.63, the largest gain since January 4 and is intra-day increase of 4.9% effective from 12 h 52, in exchange for Milan. The shares fell 1.6% this year, valuing the automaker to EUR 8.2 billion.Profit AdvancesFiat, which last week raised its stake in Chrysler to 30 per cent, reiterated today that the trade of profit in 2011 will be in the range of EUR 900 million to EUR 1.2 billion.Fiat reported a net income of the first quarter of EUR 29 million from a loss of 25 million euros a year earlier. Revenue increased 7.1% to EUR 9.2 billion. The Italian manufacturer today announced its results for the first as a company autonomous suite the spin-off of its industrial enterprises in Fiat SpA industrial commercial benefits of the January.Ferrari acquired EUR 53 million at the request of the 458 Italia and models 599 GTO. 1691 Delivered supercar brand vehicles in the first three months, an increase of 6.7%. Maserati of benefit more than double to EUR 9 million. "The Fiat results are better than expected, said Andrea Carli, sales manager of the professional investor in the Alpe Adria Gestioni in Pordenone in Italy. "There is also good news about the liquidity and debt reduction."Fiat reduced its debt to 489 million euros at the end of March EUR 542 million late last year and its cash and cash equivalents increased by 7.3% to EUR 13.1 billion.Fiat DebtFiat reiterated debt will likely rise to between 1.5 billion EUR and EUR 1.8 billion at end of this year, as capital expenditures "are expected to increase substantially" as 4.5 billion euros. MARCHIONNE said last week that Fiat use its cash to increase its stake in Chrysler. "Debt Fiat is much better than expected,"said Emanuele Oggioni, which help supervises approximately 600 million euros to Saint George Capital Management in Lugano, Switzerland and owns shares in Fiat." "It is good news as volume stagnated in the first quarter."Fiat is based on the Brazil, where he leads with a market share in the first quarter by 22.6%, to counter European losses. The automaker in the first quarter market share in the tomb of Europe to 7.2% 8.7% after postponed Marchionne introductions of model, including a compact update of Panda, until the second half. Fiat offers a total of five new cars this year, compared to nine in 2012 and 11 in 2013.European that operationsmarchionne said this month he needs to give more attention to the European operations of Fiat, which he acknowledged having undergonewhereas the integration of Chrysler has consumed his time.Fiat has agreed with the Government of the United States after the Chrysler emerged from bankruptcy in 2009 to the sharing and management technology in exchange for an initial set of 20 per cent and performance objectives to increase 35 percent without paying any cash. "He has an option to buy an additional 16 percent after Auburn Hills, Michigan constructor-based repays government loans"."We believe that the case of investment by Fiat is more attractive than ever with the option of Chrysler," said Gabriele Gambarova, "buy" an analyst with Banca Akros in Milan, which has a recommendation on the stock.MARCHIONNE, who intends completing a deal of refinancing for Chrysler at the end of June, said earlier this month it aims to obtain a public offer initial Chrysler still in 2011.Union that fightmarchionne fights with union greater by the manufacturer on the efforts to reduce costs and improve the use of capabilities in a plan to invest Italy EUR 20 billion by 2014. The IMF Cgil union went this week to block the implementation of an agreement which says Fiat of the Court is necessary to boost productivity.The challenge of the IMF may affect investment from Fiat in Italy, the manufacturer said yesterday after Marchionne met with the leaders of the union. "Fiat said also that he could cancel the plans for its plant in Turin Grugliasco unless there is a consensus among trade unions".It is difficult to see Marchionne paint a rosy Outlook for the rest of 2011, as it is still wrestling with the trade unions, and politicians, said Michael Tyndall, an analyst with Barclays Capital in London. "It seems to use a carrot approach, hinders investment until the unions accept more flexible working concessions.

-With the help of Marco Bertacche and Francesca Cinelli in Milan. Editors: Chad Thomas, Chris Reiter.

To contact the reporter on this story: Tommaso Ebhardt in Milan, at tebhardt@bloomberg.net.

To contact the editor responsible for this story: Thomas Chad at cthomas16@bloomberg.net.

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