Fiat 2Q profits drop by 55 percent

MILAN (AP) — Italian carmaker Fiat SpA, which controls Chrysler, says its second-quarter profits dropped by more than a half due to lower performance in North and Latin America.

Fiat said Wednesday that net profit was 197 million euros ($263 million), compared with 435 million euros in the same period last year.

North American volumes were up 10 percent, driven by incentives to sell legacy Chrysler vehicles, but the incentives also cut into profits. Earnings before interest and tax in the region dropped 18 percent to 598 million euros.

In Latin America, revenues dropped 13 percent as vehicle shipments fell 21 percent.

Fiat said revenues in the quarter rose to 23.3 billion euros, up 1 billion euros over the same quarter last year.

Fiat is currently finalizing its merger with Chrysler.