MILAN ? Fiat Group SpA, the Italian automaker which controls Chrysler, on Wednesday reported that full-year earnings more than doubled ? beating expectations ? as Chrysler posted its first profit since 1997.
The net profit of euro1.3 billion ($1.71 billion) compared with euro520 million a year earlier, while revenue rose 66 percent to euro59.5 billion.
The results exceeded the company's guidance. The trading profit ? or earnings before interest, taxes and one-time items ? was euro2.3 billion ($3.03 billion), compared with the target of more than euro2.1 billion ($2.77 billion).
Shares in the company rose 6 percent to euro4.86 in Milan after the publication of the results.
Fiat said the results reflected higher Chrysler sales, resilient Fiat Group Auto revenues despite declining European sales and double-digit growth at the Ferrari and Alfa Romeo luxury and performance brands.
Fiat, which controls 58.5 percent of Chrysler LLC, has consolidated results with the U.S. automaker since June. Without Chrysler, Fiat said it broke even for the year.
Chrysler sales grew 22 percent to 1.85 million vehicles, thanks to higher sales of Jeeps and revamped model lines under the Fiat partnership.
Fiat is counting on Chrysler's continued strength. It forecast 2012 revenues of euro77 billion and net profit of euro1.2 to euro1.5 billion.
In the fourth quarter, Fiat's overall net profit was euro43 million, down from euro139 million a year earlier, reflecting its less-than-full control of Chrysler and Ferrari, at 90 percent.
Quarterly revenue more than doubled to euro19.6 billion, but was flat without Chrysler's contribution.
Fiat Group Autos, which comprises the Fiat, Lancia and Alfa Romeo brands, saw annual vehicle shipments slip 2.4 percent to 2 million.
An increase of light commercial vehicle volumes failed to offset lower passenger car shipments, which declined 4.6 percent to 1.6 million, as demand in Fiat's domestic Italian market shrank significantly. Demand grew in Brazil, however, by 1.5 percent to 772,700 vehicles.
Ferrari, meanwhile, hit a record volume of 7,195 vehicles, a 10 percent increase over 2011, driven by sales of 12-cylinder models. Revenues at Ferrari rose 17 percent to euro2.25 billion, while Maserati revenues hit euro588 million on volumes of 6,159 vehicles.
Net industrial debt, which stood at euro5.5 billion at the end of 2011, is forecast to remain flat or grow to euro6 billion.
Fiat has proposed a dividend to preference and savings classes of shareholders, not to ordinary shareholders.
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