Fiat reports 54.7% drop in Q2 earnings

August 2, 2014 4:34 am

Italian automaker Fiat, which is merging with US group Chrysler, has its said net profit has more than halved in the second quarter, undermined by a higher tax charge in the US, AFP has reported. Net profit in the first three months of 2014 dropped 54.7% to €197m ($264m), compared with the same period last year. Operating profit fell by 10.4% to €961m, even though sales rose by 5% to €23.3bn. But despite the profits plunge, Fiat, which is targeting net profit of €600-800m and sales of €93bn in 2104, held to its forecasts for the year.