Italian car maker Fiat said its 2008 financial results would be at the lower end of its projection range and warned that tough market conditions next year could cut into profits.
'Events that we have witnesses over the course of (the third) quarter have significantly affected the market conditions that our activities are likely to confront in the last quarter of 2008 and in our view most of 2009,' Fiat said.
It added that between now and the end of the year it expected to see 'lower volumes' than had been foreseen in all sectors, except agricultural machinery, with the group recording current profit at the lower end of a projected range of €3.4-3.6 billion.
Fiat said that in 2009 the company would likely 'confront erratic fluctuations in market sentiment, at least in the first half.'
In a worst-case scenario, according to the group, demand could fall 10-20% compared with 2008 and current profit could come to between €1.5 billion-2.3 billion rather than the forecast range of €4.3-4.5 billion.
It said that with a return to 'normal market conditions' between now and the end of 2009, the group would be able to maintain its 2010 targets.
In the third quarter the overall Fiat group posted results in line with or better than market expectations. Net profit rose 3.1% to €468m, while sales rose 3.2% to €14.296 billion.
It delivered 516,700 vehicles in the third quarter, down 4.8% from third quarter of 2007.
