Fiat Chrysler Posts Surprise Quarterly Loss on Recall Costs
- Net income hurt as carmaker sets aside 761 million euros
- Manufacturer keeps 2015 earnings forecasts, sees narrower debt
Jeep vehicles at a dealership in Moline, Illinois.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Fiat Chrysler Automobiles NV reported an unexpected third-quarter net loss after one-time charges stemming from handling a U.S. recall wiped out earnings gains from the company’s Italian-made Jeep sport utility vehicle.
The loss totaled 306 million euros ($339 million) versus net income of 174 million euros a year earlier, the London-based carmaker said Wednesday in a statement. Analysts surveyed by Bloomberg had estimated profit would rise. Adjusted earnings before interest and taxes rose to 1.3 billion euros from 968 million euros in the 2014 period as revenue increased 17 percent to 27.5 billion euros.