Fiat Posts Net Loss for 2Q
Italy 's Fiat SpA (F.MI), which has refrained from the latest bidding for Adam General Motors Corp.'s (GM) Adam Opel GmbH to focus on restructuring Chrysler LLC, Wednesday stuck to its 2009 targets despite posting a net loss on lower sales for the second quarter.
"We expect an improvement in the remainder of the year, as trading conditions stabilize and improve for most of our businesses," said the industrial group that manufactures the Fiat, Alfa Romeo and Lancia brands, Wall Street Journal reports.
Meanwhile, Fiat acquired 20 percent of Chrysler last month as the Auburn Hills, Michigan-based maker of the Dodge Challenger and Jeep emerged from bankruptcy. Truck deliveries fell 43 percent and sales of agricultural and construction equipment declined 21 percent at CNH Global NV. Fiat predicts the market for trucks and construction equipment to suffer for the rest of the year, with a possible recovery only in the fourth quarter, Bloomberg reports.
However, Fiat is the first of the major car makers to report results for the second quarter. Many analysts are expecting to see tentative signs of stabilising demand in the industry, whose sales have been savaged by the downturn.
Fiat also has to tackle its debt, which jumped in the previous two quarters as it struggled to shift stocks, Reuters reports.
