 Fiat's Punto model has proved very popular |
Italian car and truck firm Fiat has seen its auto arm post its first full year of profits since 2000 thanks to demand for its Grande Punto. Strong sales helped Fiat Auto make a profit of 291m euros (�191m) in 2006, from a loss of 281m euros in 2005.
However, the improved performance was not enough to lift profits for the group as a whole, which dropped to 1.15bn euros from 1.42 euros in 2005.
Even so, Fiat plans to pay a dividend for the first time since 2002.
The firm said it is aiming to pay a dividend of around 276m euros to shareholders, provided the firm's board signs off the latest financial statements.
'Promises'
Fiat Auto, whose brands include Alfa Romeo, saw vehicle sales rise 16.7% in 2006, while delivery of its cars increased 15% in Brazil.
Fiat, which plans to continue "aggressive cost cutting", expects the car market in Western Europe to "remain stable this year", while demand in Brazil should show "moderate growth".
"There was nothing of controversy in the numbers. What matters are the promises for 2007 and 2008," said Max Warburton, an analyst with UBS.
"The key thing is, can Fiat Auto continue to progress in Europe and Brazil in 2007?" he added.
Fiat's results came amid wider restructuring plans at the firm.
The restructuring included a "major renewal" of the product line, including the introduction of 22 new models said the firm.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 
