Fiat disappoints with profits, waives dividends

Fiat disappoints with profits, waives dividends

 

Milan (AFP)

 

Italian car giant Fiat on Wednesday reported 2013 results which were below analysts expectations and said it would be waiving dividends, causing shares in the group to plummet.

 

The carmaker reported a trading profit of 931 million euros ($1.27 billion) for the fourth quarter of 2013, less than the 1.5 billion euros forecast by analysts.

 

The Turin-based company also cut its 2014 forecast more than expected, to between 3.6 to 4.0 billion euros -- down from a previous estimate of up to 5.2 billion euros.

 

Subsequently, the board of directors "has decided not to recommend a dividend payment on Fiat shares, given the company's desire to maintain a balanced level of liquidity following the acquisition of the minority stake in Chrysler Group LLC," the company said in a statement.

 

Shares were down 4.37 percent on the FTSE Mib market at midday.

 

Fiat blamed in part a profit drop on conditions in Latin America, which it said was due primarily to "input cost inflation, unfavourable production mix and lower result in Venezuela."

 

(Agence France-Presse, 29 Wednesday January 2014 The Roman)