Fiat Chrysler posts surprise quarterly loss on recall costs

Milan

FIAT Chrysler Automobiles NV (FCA) reported an unexpected third-quarter net loss after one-time charges stemming from handling a US recall wiped out earnings gains from the company's Italian-made Jeep sport utility vehicle.

The loss totalled 306 million euros (S$470.9 million) versus net income of 174 million euros a year earlier, the London-based carmaker said on Wednesday. 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 per cent to 27.5 billion euros.