Fiat CEO Sergio Marchionne declared "the worst has passed" Wednesday after the Italian automaker reported an unexpected, small third-quarter profit on Wednesday.

Fiat Group SpA's net profit still plunged 95 percent from the same period a year earlier. But analysts say the numbers indicated a level of resilience even as management shuttled back and forth across the Atlantic to manage the turnaround of Chrysler LLC.

Fiatreturned to profitability after two straight quarters of losses, attributed to the severe impact of the world economic crisis on auto sales worldwide.

Net profit was euro21 million ($31.44 million), down 95 percent from euro440 million in the same quarter a year earlier. Revenues fell 15 percent to euro12 billion compared with euro14.3 billion in the same period last year.

Turin-based Fiat took a controlling 20-percent in the U.S. automaker after it emerged from bankruptcy in June and Marchionne is set to announce Chrysler's five-year business plan on Nov. 4.

The bottom line was helped by the cash-for-clunkers programs in Europe, which has favored the small cars and fuel-efficient engines in Fiat's lineup, and by strong volumes in Brazil. Two-thirds of Fiat's operating profit came from autos, Marchionne told a conference call, with car volumes up some 10 percent year on year.

"I think it is fair to say the worst has passed," CEO Sergio Marchionne told an analyst conference call. "It is unclear when we will see substantial signs of recovery in 2010."

Much will depend, Marchionne said, on whether European governments will continue the eco-incentive programs as far as the car business goes. Germany has already ended its, but Italy appears ready to continue its incentives.

Fiat maintained its forecast of trading profits, or operating earnings before one-time pluses and minuses, above euro1 billion and debt levels below euro5 billion.

Shares closed down 2 percent at euro11 on the Milan Stock Exchange.

The earnings release was marked by an unusual revision, as the company initially reported a net loss of euro168 million. About 90 minutes later, it corrected the relevant page of its release and changed that number to a small profit. Fiat dismissed the error as trivial, and it was not raised by analysts during the conference call.

Many analysts and investors focused on the trading profit number, which was not changed. Continued...