Fiat on Thursday announced it has made a net profit of 1.2 billion euros in 2006 and that shareholders would receive a dividend for the first time since 2002.
Turnover for the group in 2006 was put at 51.8 billion euros, an 11% increase over the previous year.
Fiat Auto posted a trading profit of 291 million euros, compared to losses of 281 million euros in 2005, with turnover leaping 20.2% to 25.6 billion euros.
At the end of 2006, Fiat's net indebtedness fell below 1.8 billion euros while cash-on-hand remained high at almost eight billion euros.
A statement from Italy's largest industrial group said management would recommend to the board that dividends of 0.155 euros be paid for common shares, 0.31 euros for preferred shares and 0.93 euros for savings shares, for a total of 276 million euros.
Fiat turnover for the fourth quarter of 2006 stood at 13.9 billion euros, up 5.5% over the same period in 2005, with a trading profit of 542 million euros, up 50% from the fourth quarter the previous year.
Net profit for the fourth quarter totalled 470 million euros, compared to 84 million euros in 2005.
According to Fiat CEO Sergio Marchionne, "2006 was an important year for Fiat because it marked the completion of an intense period of restructurization thanks to which the group today is in a position to embark on a new course of growth and expansion during the 2007-2010 period".
Marchionne recalled that "all the objectives we set have been reached and in many cases surpassed".
"Our definitive plan for the next four years is even more ambitious and demanding. It is a plan which focuses on growth," he added.
Looking at the current year, Marchionne said Fiat would continue its "strategy of targeted cooperation" and predicted that "by 2010 Fiat will once again be a leading international industrial group".
Fiat's bus and truck division Iveco had a turnover last year of 9.1 billion euros, up 7.7% from 2005, with a trading profit of 546 million euros, about 6% of turnover, representing a 64% jump from the previous year.
Aside from motor vehicles, Fiat produces farm and construction equipment, component parts and metallurgical products.
It is also involved in production systems, publishing, information technology, construction and real estate management.
