MILAN (AP) – Fiat Chrysler Automobiles on Thursday raised its revenue forecast after strong sales in North American and a recovery in the European market boosted second-quarter profits by 70 percent.
The rosy results come as the carmaker will be required to pay millions of dollars to get potentially defective Ram pickups and older Jeeps off the road under a deal with safety regulators to settle allegations of mishandling nearly two dozen recalls. The company said in a presentation to analysts Thursday that it didn’t expect the Ram buyback offer to cost more than $20 million.
Fiat Chrysler reported its net profit in the three months ending June 30 was 333 million euros ($364 million), compared with 197 million euros in the same period last year.
It said it was raising its revenue forecast to 110 billion euros from 108 billion euros, on worldwide shipments of 4.8 million units, at the low end of the previous range. It maintained its net profit forecast of between 1 billion euros and 1.2 billion euros.
Shares rose 5.2 percent to 13.91 euros in Milan trading.