MILAN (AFP) - Troubled Italian automaker Fiat Auto reported an 11 percent increase in third quarter sales to 4.5 billion euros (5.7 billion dollars) compared with the same period last year and said it had cut its operating loss 18 percent to 270 million euros.
In late July, the group had said Fiat Auto would likely break even at the operating level in 2006 rather than 2005.
Fiat Auto sold 402,500 vehciles in the quarter, an 11 percent increase over the same period last year, giving it a market share of 28 percent in Italy and 6.9 percent in Europe.
The industrial conglomerate Fiat, Fiat Auto's parent, posted a sharp increase in third-quarter net loss owing to an exceptional item a year earlier, but slashed its operating loss by almost two-thirds.
Fiat's third quarter net loss came to 554 million euros (705 million dollars), compared to 84 million one year earlier, when the group recorded a capital gain of 781 million euros on the sale of its FiatAvio aircraft engine unit.
Fiat's operating loss fell to 97 million euros from 283 million, the conglomerate said in a statement.
Sales increased 9.4 percent to 10.648 billion euros.
The operating result was boosted in particular by Fiat's heavy truck (lorry) division Iveco and agricultural machine unit CNH, the group said.
Operating profit at Iveco swung to 76 million euros from a two million loss, as sales rose to 2.101 billion euros from 1.810 billion, while operating profit at CNH rose to 90 million euros from 20 million and sales rose to 2.439 billion from 2.214 billion, it said.
Fiat added that it expected further improvement in profitability at the two units, while Fiat Auto was projected to post a smaller full-year operating loss compared with 2003.
Fiat also confirmed it will close the full year with an operating breakeven at the group level.
Group debt at the end of September stood at 5.5 billion euros compared with 4.3 billion at the end of June.
10/28/2004 - 14:09 GMT - AFP