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Fiat’s EBIT fell to 618 million euro from 806 million euro during the same period last year, missing the analysts’ estimates of 691 million euro. Revenue also fell 2.3% to 19.8 billion euro. Fiat said it keeps its target to reach a 2013 profit between 4 billion euro and 4.5 billion euro, from 3.81 euro last year, even if auto market in Europe fell 9.7% during the first quarter and it heads towards its sixth consecutive year of decline.
After a loss in Europe of more than 700 million euro in 2012, Fiat still plans to buy the rest of 41.5% stake in Chrysler and end losses in the region. Chrysler’s profit during the first quarter fell 65% on new vehicle launches and net income fell to $166 million, compared with $473 million during the same period last year.
“We see no recovery ahead for Fiat as the group will suffer from the worse-than-expected trend in Europe in 2013,” Andrea Balloni, an analyst at Fidentiis Equities SA in Milan, said ahead of the results. “From a speculative point of view, the buyout of Chrysler is the main short-term catalyst.”