* Reaffirms financial goals under business plan
* Trading profit seen at top of given range this year
* Fiat shares down 1 pct, Fiat Industrial down 4.5 percent
(Recasts, adds analyst comments, alliances)
By Ian Simpson
MILAN, Jan 27 (Reuters) - Italian automaker Fiat pointed to slowing sales growth in its key Brazilian market on Thursday and said taking a majority stake in a rebounding Chrysler was not imminent.
Fiat, Europe's No. 6 automaker by market share, reaffirmed its 2010-2014 financial targets and said it expects trading profit this year to be at the top end of its 0.9-1.2 billion euros range.
"All indications are that 2011 will be a better year than last year. We want to see our first-quarter performance before we raise our guidance," Chief Executive Sergio Marchionne told a conference call on 2010 results for Fiat and its newly spun-off truck and tractor group, Fiat Industrial.
Marchionne, who has made Fiat one of Europe's top turnaround stories, said Fiat was facing increasing competition in Brazil's booming market, where it leads with a 23 percent share.
Fiat forecast Brazilian passenger car sales up as much as 5 percent this year, slowing from almost 7 percent growth in 2010. Light commercial vehicle sales growth was estimated at 2 percent to 5 percent, well down from 30 percent the year before.
"I am confident we will be able to at least duplicate the 2010 performance in Brazil," Marchionne said.
Fiat estimated its European sales falling 3 percent, with an upturn in market share in the second half of 2011 through the launch of new models.
NO TIMING ON CHRYSLER
Fiat has no timing as yet for an initial public offering (IPO) for Chrysler, Marchionne said. Fiat has pointed to a listing this year for the company, 25 percent owned by Fiat under a 2009 U.S. government rescue.
"I hope that all these things happen in 2011. We need to have a lot of people to agree and we are not there yet," he said.
Fiat can boost its Chrysler stake to 35 percent in two tranches by showing U.S. officials it is using its technology and international reach to put Chrysler on a sounder footing.
It has an option to take a further 16 percent stake once it reaches 35 percent.
Marchionne also said Fiat was open to possible mergers and acquisitions and said there were no plans to list its Ferrari luxury car brand.
The Fiat group's trading profit in 2010 was 2.2 billion euros, in line with analysts' forecasts. The 2010 results grouped both Fiat and Fiat Industrial, which was spun off on Jan. 1.
Fiat shares closed down 1.01 at 7.315 euros as the STOXX Europe 600 autos index ended 0.38 percent lower.
Shares in Fiat Industrial closed down 4.5 percent at 10.118 euros. The stock was up more than 8 percent on Wednesday in anticipation of the results. (Additional reporting by Helen Massy-Beresford in Paris; Editing by Will Waterman and Elaine Hardcastle)
($1=.7296 Euro)