03.11.2003 FIAT REDUCE THEIR THIRD QUARTER LOSSES AS AUTO DIVISION SLOWLY REVERSES SALES DECLINE

Fiat have reduced their losses for the second consecutive quarter, after their third quarter results were released, but the €285 million loss was considerably higher that even the most pessimistic analysts had been predicting.

The Group's third quarter operating loss of €285 million was down from €339 million year-on-year, as the loss making Auto division continued to drag the industrial giant down, recording a €314 million loss, albeit down year-on-year from €246 million. Analysts, who had predicted a Group loss of around €245 million, with the Auto division losing an estimated €275 million, were highly disappointed by the results.

Income contracted to €9.8 billion as a result of the sale of key assets. The net loss were €84 million, down from a €413 million loss year-on-year, a figure though massaged by the inclusion of a €781 million windfall from the sale of the aeronautical division, Fiat Avio.

However, with a raft of new models having recently hit the showrooms, including the restyled Fiat Punto, the new Fiat Panda and Idea, and the Lancia Ypsilon, the Fiat board are confident that the final quarter will see the start of a return to profitability.