Fiat Industrial Q4 earns down 15 percent

Fiat Industrial, the Italian maker of trucks, farm and construction vehicles, has reported a 15-percent drop in fourth-quarter profits due to weak results in its agriculture and construction business.

Fiat Industrial SpA, which spun off from Fiat Group last year, said Wednesday net profit less minority interests for the quarter was (euro) 123 million ($162 million), down from (euro) 146 million a year earlier.

Fiat Industrial comprises CNH farm and construction vehicles, Iveco trucks and related power train businesses.

The CNH agriculture and construction equipment business, which is 89 percent controlled by Fiat Industrial, earlier reported an 8-percent decrease in quarterly profits.

Revenue for the quarter was (euro) 6.8 billion, up 14 percent from (euro) 5.9 billion a year earlier.

And trading profit - or earnings before interest, taxes and one-time items - rose 34 percent to (euro) 395 million from (euro) 294 million.

For the year, Fiat Industrial reported an 83 percent increase in net profit to (euro) 624 million from (euro) 341 million. That came in below the consensus of analysts polled by FactSet, who forecast (euro) 735 million. Full-year revenues were up 14 percent to (euro) 24 billion from (euro) 21 billion a year earlier on improved sales of agriculture equipment, higher truck deliveries in Latin America and some European markets and higher power train sales.

The company announced guidance of (euro) 900 million for net income on revenues of about (euro) 25 billion in 2012. It forecast a trading profit of (euro) 1.9 billion to (euro) 2.1 billion, and net industrial debt of (euro) 1 billion to (euro) 1.2 billion.