Fiat Cuts Profit Forecasts; No 2008 Dividend Planned

Jan. 22 (Bloomberg) -- Fiat SpA, poised to take a 35 percent stake in Chrysler LLC, cut its earnings forecast and said it won’t pay a dividend after fourth-quarter profit plunged as the recession hurt sales of its Punto cars and Iveco trucks.

Fiat, Italy’s biggest manufacturer, dropped 15 percent in Milan trading, a record decline, on concern the company may have to raise capital after debt rose. Net income fell to 163 million euros ($212 million) in the quarter from 570 million euros a year earlier, the Turin-based company said in a statement. Source