The company's quarterly operating profit was $779.3 million, or 49 cents a share. Analysts had been forecasting 41 cents a share.
Fiat Chrysler increased its forecast for full-year adjusted operating profit to more than $6 billion from its previous forecast of at least $5.5 billion.
The Italian-American automaker, whose operational headquarters is in Auburn Hills, Mich., said worldwide vehicle shipments for the period fell 1% due to a transition in China to local production of Jeep. Net revenue fell 2%.
FCA said "strong cash generation from operations" led to a reduction in net industrial debt of $1.21 billion from March.
FCA's results followed by a day the disclosure that the automaker revised five years of sales results, meaning that an impressive string of month-over-month sales increases should have ended five years ago. FCA's restatement comes amid an investigation into sales reporting practices by the U.S. Securities and Exchange Commission.
Earlier this year, an Illinois-based dealer group filed a civil racketeering lawsuit against FCA, claiming it had conspired to inflate sales figures by paying the dealer to buy and falsely report cars as sold. FCA said the lawsuit was without merit.
On Tuesday, FCA said it will invest $1.48 billion to retool its Sterling Heights, Mich., assembly plant for manufacture of Ram pickup trucks, one of the automaker's most profitable models. The plant had been building Chrysler 200 sedans, a car that has been discontinued due to poor sales. FCA invested $1 billion nearly three years ago to build the model.
The automaker also is investing $1 billion in plants in Toledo, Ohio, and Belvidere, Ill., to expand its Jeep brand following discontinuation of Dodge Dart, a twin of the Chrysler 200.
Doron Levin is the host of "In the Driver Seat," broadcast on SiriusXM Insight 121, Saturday at noon, encore Sunday at 9 a.m.
This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.