Fiat Chrysler U.S. Unit's Profit Falls 89% on Costs for Recalls
- Company set aside $848 million in quarter for future expenses
- Strong sales for Jeep couldn't overcome strain on earnings
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Fiat Chrysler Automobiles NV’s U.S.-based unit said third-quarter earnings tumbled 89 percent as recall costs eroded profit from booming Jeep sales.
Net income declined to $70 million from $611 million a year earlier, FCA US, the parent company’s North American unit, said in a filing Thursday. Revenue climbed 5.3 percent to $21.8 billion. Earnings excluding some items such as the recall costs rose to $743 million from $611 million.