Fiat meets forecasts as Chrysler trims outlook

MILAN: Italian automaker Fiat SpA reported trading profit in line with forecasts yesterday and an improved debt picture, although its US unit Chrysler Group LLC surprised the market by trimming its 2013 financial targets.

In recent quarters, cash-generative Chrysler’s booming US sales have outshone Fiat’s losses in Europe.

‘‘The market seems to be a bit confused right now about these two sets of results,’’ a trader in Milan said.

Fiat said its group trading profit — earnings before interest, taxes and onetime items — was 1.03 billion ($1.37 billion), just above analysts forecasts of

1 billion, as its loss in Europe narrowed and sales in Asia improved.

Chrysler trimmed its full-year net profit forecasts to $1.7 billion and $2.2 billion, down from its previous target of around $2.2 billion.

It said it saw worldwide vehicle shipments at 2.6 million, from a previous 2.6 million-2.7 million. It confirmed revenue targets.

Net profit at Chrysler rose to $507 million in the second quarter from $436 million a year before.

Chrysler sold 643,000 vehicles worldwide in the second quarter, up 10% from a year ago. Sales were also up 10% in the US, where Chrysler sells 75% of its vehicles. Chrysler’s US sales rose faster than the industry average of 8% in the second quarter.

Revenue was up 7 % to $18 billion from $16.8 billion.

In the second half of this year, Chrysler should get a boost from the release of the new Jeep Cherokee, which started rolling off the line in Toledo, Ohio, last month. The Cherokee replaces the Liberty, which was phased out last year.

‘‘As we have highlighted previously, the timing of product launches and capacity increases causes this year’s performance to be biased to the second half,’’ Fiat-Chrysler chief executive Sergio Marchionne said in a statement.

Fiat said its losses in Europe narrowed in the second quarter to 98 million ($130 million) even as car shipments in the region fell 5%.

Its net debt was 6.71 billion, against a forecast of 7.1 euros and compared with 6.5 billion at year-end.

Fiat’s closely-watched investments in plants and equipment were 3.47 billion in the second quarter, compared to 3.24 billion for the year-ago period.