Fiat Chrysler US swings to 1Q profit on big tax gain
DETROIT (AP) — Fiat Chrysler Automobiles U.S., formerly Chrysler Group, posted a $2.58 billion first-quarter net profit that was boosted by a one-time change in its tax status.
The company, now part of Fiat Chrysler Automobiles N.V., gained $2.3 billion from the tax change. It lost $690 million a year ago due largely to payment of debts to a union health care trust.
First-quarter revenue rose nearly 10 percent to $20.88 billion, driven by new products such as the Jeep Cherokee and Renegade SUVs.
Fiat Chrysler's U.S. unit reports earnings separately from its parent company even though the companies were merged into one last year. The Chrysler unit helped the parent company, which earned $101 million in the first quarter under international accounting standards.
Chrysler's first-quarter worldwide sales rose 6 percent 661,000.