MILAN — Italian automaker Fiat, which controls Chrysler, on Wednesday pushed ahead with plans to split into two companies as it reported a return to profit in the second quarter on improved sales of farm equipment and trucks.
Fiat announced that its board approved the plan to separate its industrial-vehicle and auto businesses into two companies to create a global auto company that will eventually incorporate Chrysler Group LLC. The plan was announced in April.
Fiat Group SpA, which makes cars under the Fiat, Alfa Romeo and Ferrari brands, as well as trucks, construction and farming equipment, reported a second-quarter net profit of $115.6 million, compared with a loss of $215.3 million in the same period last year. Net revenues were up 12.5 percent to $19 billion.
But Moody’s announced it was putting Fiat’s Ba1 credit rating under review for possible downgrade because of the breakup plans.
“The spin-off of Fiat Industrial will result in a weakening of Fiat’s business profile compared to the present combined Fiat Group,” Moody’s said in a statement.
Bernstein Research analyst Max Warburton said the better-than-expected quarterly results should lead the way for strong reports across the European auto sector. He had expected Fiat to underperform French and German competitors, which have yet to report, but was forced to revise his assumptions.
