Troubled Turin carmaker sees first profit in over four years (ANSA) - Turin, January 30 - Fiat on Monday announced that its troubled automotive division Fiat Auto had posted a profit for the first time in over four years .

After 17 quarters of steady losses, Fiat Auto in the last three months of 2005 posted an operating profit of 21 million euros, according to a statement issued by Fiat's board of directors after it approved the group's results for the fourth quarter and all of 2005 .


Fiat Auto losses for 2005 were put at 541 million euros, down from 822 million euros for 2004 .

The Fiat Group, Italy's biggest manufacturer, closed 2005 with net profits of 1.4 billion euros while its industrial debt was reduced by two-thirds, falling from 6.1 billion euros at the end of 2004 to 3.2 billion euros .

Thanks to a 2% increase in turnover, the Fiat Group last year saw its operating profit climb from 50 million euros in 2004 to one billion euros last year .

Fiat said that it could confirm all its financial and sales targets for 2006 and 2007 based on last year's results .

The Turin group also announced its intention of floating a seven-year bond issue, the amount and price of which will be based on market conditions .

Speaking after Monday's board meeting, Fiat Chairman Luca Cordero di Montezemolo told the press that he was "deeply satisfied by the results we were able to announce today. We surpassed all the targets CEO Sergio Marchionne set in 2004 and the group closed 2005 with all its sectors producing a profit and all sectors posting net improvements for the whole year" .

Marchionne was also on hand and said that Fiat this year aimed at maintaining its 30% stake in the Italian car market and 7.2% share of Europe's .

Turning his attention to the bond issue, the CEO observed that market conditions were "ideal" for such an operation .

"However, we can take our time because although we do have some three billion euros in bonds set to mature in 2006, we also have seven billion euros in cash-on-hand", he added .

The announcement of Fiat's 2005 results sent the group's stock on a roller-coaster ride. It first jumped 2.52% to then turn around and tumbled to 0.8% less than its opening price .

By afternoon the stock was back on the rise, up 1.10%, in heavy trading .

Helping to consolidate the stock was the announcement from Moody's Investment Service that it had increased the outlook for Fiat's debt rating from negative to stable, while the long-term rating of BA3 remained the same .