28.10.2004 In a statement to the Italian stock exchange made this morning, Fiat Auto has reported a healthy 11% increase in third quarter sales, up to 4.5 billion euros

In a statement to the Italian stock exchange made this morning, Fiat Auto has reported a healthy 11% increase in third quarter sales, up to 4.5 billion euros. This figure equates to 402,500 cars and light commercials have been sold this y.

At the same time the auto division has reported an 18% drop in their operating loss, down to 270 million euros, from 314 million year-on-year.

Overall, the Fiat Group announced an increased year-on-year third quarter net loss of 554 million euros, but significantly, it has reduced its operating loss by nearly two thirds, down to 97 millions euros, from 283 million, for the corresponding period last year.

The net loss can be attributed to a one-off exceptional payment last year when the group cashed in the 781 million euro proceeds from the sale of its aeronautical division, Fiat Avio. Taken into account, the figures make much more progressive reading.

Overall group revenues rose 8%, to 10.6 billion euros, helped by strong performances from agricultural division CNH Global, and the IVECO truck and bus arm.

CNH recently announced third quarter operating profits which came it at 90 million euros, up from 25 million year-on-year, while revenue grew by 10%. Iveco, significantly beat analyst's forecasts, by also posting a strong third quarter operating profit. At 76 million euros it was well up from a 2 million year-on-year loss, while revenues were up by more than a fifth.

The Ferrari-Maserati division slipped to a 2 million euro operating profit, down from 9 million year-on-year, the sportscar arm hindered by continuing investment in Maserati's relaunch, as well as a strong euro, which has significantly reduced the profitability of sales in their strategically important North American market.

Earlier this summer Fiat put back the auto division's break even date to 2006, from a projected target of 2005. While financial analysts found the third quarter loss larger than they had expected, the slashing of the operating loss was greater than forseen, and they generally believe that the scheduled return to profitability is still on track.