Chrysler earnings up 32% on rising sales

Chrysler Group’s third-quarter profit rose 32% as worldwide sales continued to climb, helping the U.S. company prop up its ailing parent.

Chrysler made $611 million in the July-through-September quarter, compared with $464 million a year earlier. Revenue rose nearly 18% to $20.7 billion.

Fiat and Chrysler last month finished a five-year merger process to form Fiat Chrysler Automobiles. The Netherlands-based parent company made only $221 million last quarter under international accounting standards, which are different from those applied in the U.S.

Chrysler said Wednesday that its worldwide sales grew 18% in the quarter to 711,000 vehicles. Most of the increase occurred in the U.S., where retail sales grew 20% largely because of the new Jeep Cherokee small SUV and Chrysler 200 sedan.

Chrysler’s U.S. market share also continued to grow during the quarter, rising 1.1 percentage points to 12.3%. Outside North America, sales rose 11% to 91,000.

The Auburn Hills, Mich., company raised its full-year forecast for worldwide vehicle shipments by 100,000 vehicles. It now expects to ship about 2.9 million cars and trucks. It expects revenue of more than $80 billion for the year.

On a conference call with analysts, Chief Financial Officer Richard Palmer said the company’s sales growth and new products selling for higher prices should help close its profit margin gap with Detroit competitors Ford and General Motors.

“We’re the fastest-growing manufacturer at the moment in the U.S. marketplace,” Palmer said. “As we upgrade our vehicle portfolio, we continue to focus clearly on growing market share, improving price positions.”

Palmer also said that recalls increased costs by $200 million last quarter.

Shares of Fiat Chrysler rose 9 cents, less than 1%, to $11.14.