Fiat Brazil profit fell 21% in 2012

SAO PAULO-revenues increased, but the profit of Fiat Automóveis S.A. fell in 2012, in comparison with the previous year, due to a major national competition and the inflationary pressure on costs. The information contained in the company's balance sheet, released on Wednesday, day 3.
In 2012, Fiat accounted for net operating revenue of R $ 23,196 billion, up 8% compared to the result of 2011, of R $ 21,496 billion. The calculated profit, however, fell 21% on 2011, $ 2,051 billion to r $ 1.618 billion. "The reduction in pre-tax profit is a result of increased competition in the domestic market and inflationary pressure on the cost structure of the company", says the report.
Although inflation as one of the obstacles to the growth of profit in 2012, the management report of the company reiterates confidence in the growth potential of the country this year, "stimulated primarily by the force of the internal market and for economic policy to sustain priority continued economic growth, with inflation control."
The automotive market in 2012, holds the note, presented above-average performance of the economy, which is in the process of social mobility and inserting layers of the population in the consumer market in recent years. In addition, the company highlights the expansion of formal employment, salary mass and the supply of credit and the fall in interest rates, together with the reduction in the tax on industrialized products (IPI), as factors that encouraged the strengthening of the consumer market in the country.
Sales. In 2012, the Fiat surpassed his mark in Brazil, registering his best performance in 36 years of presence in the country. Were 838,218 car and light commercial that got their plates of trademark last year, an increase of 11.1% over the previous year. By 11 the company led the Brazilian market, reaching 23.1%.
For 2013, the company mentions that continues "attentive to international economic situation", but that the prospects for growth of the Brazilian economy "are promising, especially for durable goods consumption, private investment and record agricultural harvest".