Fiat is forgoing its dividend in order to preserve cash,
the
Financial Times
reported.
The Italian carmaker’s net profit for 2013 was 1.4 billion euros, vs. 1 billion euros in 2011, but Fiat would have posted a loss of 1 billion euros had it not been for its 58% stake in Chrysler, the
FT
article said.
Fiat’s net industrial debt increased by 1 billion euros, to 6.5 billion euros, because of the company’s plan to invest in premium cars, according to the report. Also, Fiat’s board has approved a plan to issue 5 billion euros in bonds before the end of 2014, the
FT
article said.
Sergio Marchionne, CEO of Fiat Chrysler, said he wants to complete a buyout of Chrysler as soon as Fiat can afford it. But the union-controlled health care fund that controls the rest of Chrysler has exercised its right to demand that Chrysler prepare for in initial public offering instead, the
FT
report noted. (Source:
Financial Times,
Jan. 31, 2013.)
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