Fiat's net profits leapt 90% in the second quarter of 2007 thanks to all-time highs for revenue and operating profits, the group reported on Tuesday.
Net profits climbed to 627 million euros, up 297 million euros from the second quarter of 2006, while operating profits soared 44% to 946 million euros and revenue rose 12% to 15.2 billion euros.
Fiat's positive performance allowed it to reduce its net debt by 404 million euros to 873 million euros, well below the group's target for 2007 of one billion euros.
This was achieved despite dividend payments and share buy-back operations and debt is now expected to fall to some 600 million euros by the end of the year, the group said.
Some 80% of the group's revenue came from its automobile division, Fiat Group Automobiles, where second quarter earnings rose 12% to 6.8 billion euros.
"Our midyear results are fully in line with our targets for 2007 and constitute a solid base to continue growth and increase profit margins set down in our 2007-2010 business plan," Fiat said.
"The group confirms that it expects to reach the upper end of all the 2007 target ranges announced last November," a company statement added.
Despite a general market slowdown, Fiat in 2007 has seen its new car sales and market share climb steadily in the competitive European market.
New car sales in Europe for the group in the first half of the year were up 6.7% over the same period last year, while Fiat's market share jumped to 8.4% from 7.8% for the same period in 2006.
Fiat Group Automobiles saw earnings of 6.8 billion euros in the second quarter of 2007, up 12.1% from the same period last year, with operating profit hitting 193 million euros, more than double second quarter profits in 2006.
Aside from the Fiat marque, the group also produces Alfa Romeo, Lancia, Ferrari and Maserati cars.
Revenue for Fiat's industrial vehicle division IVECO climbed 11.5% in the second quarter of 2007, while earnings from CNH (Case New Holland) were up 16.3% from sales of farm and construction equipment.
