DETROIT — Italian vehicle maker Fiat cut its 2013 financial targets on Wednesday as a third-quarter revenue slump in Brazil offset a strong performance at vehicle maker Chrysler, which it controls.

Fiat slashed the bottom end of its trading profit forecast to €3.5bn from €4bn, saying that its third-quarter earnings took an €80m hit from a weak Brazilian real.

Its trading profit — earnings before interest, tax and one-time items — in Latin America tumbled to €165m in the third quarter from €341m a year ago.

Analysts were expecting a poor performance in Brazil, which usually accounts for about a quarter of Fiat’s trading profit, because of the strong euro and the end of car sales incentives, but were surprised by the extent of the outlook cut.

They had pencilled in a full-year trading profit forecast cut to as low as €3.65bn, according to a consensus published on Fiat’s website. As a result of the deeper than expected cut, Fiat’s shares fell 5.7% in Milan after the earnings statement. Fiat cut revenue guidance for the full year to about €88bn, at the bottom of its previous range.

Chrysler, which Fiat has controlled since 2009, said its net revenue rose 13.5% to $17.6bn in the quarter, as strong sales of its pick-up trucks and Jeep Grand Cherokee helped offset a delay in sales for the Jeep Cherokee.

Reuters