Fiat surprises with profit leap but shares fall

Italian auto giant Fiat reported a huge increase in second-quarter profit on Tuesday but its share price plunged after US partner Chrysler revised down its 2013 financial targets. Fiat said its net earnings came in at 435 million euros ($577 million) -- 82 percent more than in the same quarter last year. This was more than had been expected by analysts polled by Dow Jones Newswires who had forecast a result of 305 million euros. Without counting the Chrysler accounts, however, Fiat clocked a net loss of 247 million euros -- about the same as in the second quarter of 2012. Fiat also said its turnover had grown by 4.0 percent to 22.3 billion euros over the 12-month period, while debt had gone down to 6.7 billion euros. The group confirmed its targets for 2013. It forecast a net profit this year of between 1.2 billion and 1.5 billion euros and a turnover of between 88 billion and 92 billion euros. On the Milan stock exchange, trading in Fiat shares was suspended after they plunged 4.76 percent, while the benchmark index was up 0.55 percent.