Fiat S.p.A. raised its full-year earnings targets after consolidating Chrysler Group into its earnings.
Fiat forecasts 2011 earnings before interest, tax and one-time items, which Fiat calls trading profit, of about 2.1 billion euros ($3 billion) and revenue of more than 58 billion euros, the company said on Tuesday.
The previous target, which did not include Chrysler, was for trading profit of as much as 1.2 billion euros and 37 billion euros in sales.
Second-quarter trading profit advanced 71 percent to 525 million euros from 307 million euros a year earlier. Profit exceeded the 494 million-euro average estimate of nine analysts surveyed by Bloomberg. Revenue gained 40 percent to 13.2 billion euros. Sergio Marchionne, who runs both carmakers, is planning a merged management structure for Fiat and Chrysler as he moves forward on combining the two. The Italian automaker last week increased its Chrysler stake to 53.5 percent. Fiat earnings include Chrysler results from June 1.
Marchionne, 59, aims to merge the carmakers to reduce costs and achieve a target of more than 100 billion euros ($140 billion) in revenue by 2014. He said in May that the timing hasn't yet been decided and that a combination isn't likely this year.
"We believe Fiat offers a unique combination of structural and operational value creation," Goldman Sachs analyst Stefan Burgstaller, who has a "buy" rating on the stock, wrote in a note to investors last week. "Successful execution of the five- year plan offers further operational upside."