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Fiat sees EUR 100m Japan disaster impact

20 April 2011, 17:05 CET
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(MILAN) - Italy's Fiat said the tsunami in Japan could cut its trading profit this year by 100 million euros and reduce European production by up to 100,000 units because of a lack of Japanese-made car parts.

The impact will be "about 100 million" euros ($145 million) Fiat boss Sergio Marchionne said in a conference call with analysts after a company earnings release that showed lower-than-expected profits in the first quarter.

"We can absorb it without revision of our forecast," Marchionne said.

Fiat earlier confirmed its financial targets for this year, with a trading profit forecast at between 900 million euros and 1.2 billion euros. Net profit over the year is expected to be 300 million euros, Fiat said.

In the presentation of its first-quarter results, the auto group also indicated "potential loss of European volumes of 50-100k units" this year saying this cut would mainly impact the second and third quarters.

By the fourth quarter, the disaster would stop hitting production, Fiat said.

Fiat last year sold more than a million cars in Europe. The loss of production would therefore hit at most 10 percent of European sales.

Many car manufacturers have been hit by the disaster in Japan because of the impact on production of specialist auto part makers in the area.

On Wednesday, France's Peugeot said the disaster in Japan could have an impact of around 150 million euros ($218 million) on its earnings.

Japan's Toyota, the top producer in the world, also said it would have to lower its production in China because of a lack of car parts.

Chrysler, General Motors, Honda and Nissan have all also been affected.


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