Fiat profit drops, cuts outlook and dividend
(IT:F 3.91, -0.54, -12.1%) Fiat was forced to cut its dividend for 2008 and halt a share buyback as sales and profits dived. Underlining the deterioration in European auto markets, the company also cut its guidance for 2009, warning that sales will fall further. Net profit attributable to shareholders fell to EUR1.61 billion in 2008, compared with EUR1.95 billion in 2007 as sales of its autos fell 20%, in line with market expectations. It now only expects a group net profit of over EUR300 million in 2009, after dramatically slashing its target for trading profit - or operating earnings before asset disposals, restructuring costs or other one-time items - to EUR1 billion from a previous target range of EUR3.4 billion to EUR3.6 billion