Fiat Chrysler US 3Q profit falls 89 percent on recall costs
DETROIT (AP) — Net income at Fiat Chrysler's U.S. operations fell 89 percent in the third quarter as the company set aside millions to pay for future safety recalls.
The Auburn Hills, Michigan, company says its net profit was $70 million from July through September compared with $611 million a year ago.
Fiat Chrysler US posted just over $1 billion in one-time pretax charges, including $848 million for recalls and $159 million for vehicles damaged in a Chinese port explosion last August.
Without the charges the company would have had a modified operating profit of nearly $1.3 billion, 34 percent higher than a year ago.
The company relied on its booming Jeep brand for worldwide sales and revenue increases. Revenue rose 5 percent to $21.8 billion.