Fiat Chrysler posts profit after sales blunder

Fiat Chrysler Automobiles said Wednesday it earned a profit of $352 million (321 million euro) during the second quarter, or 25% more than it did for the same period last year.

The automaker said its profits were hurt by recall costs totaling $455 million (414 million euro) and took a $115 million charge (105 million euro) related to the cost of realigning its North American production footprint.

Last year, the automaker earned a profit of $282 million (257 million euro) during the second quarter.

The automaker's revenue declined 2% during the second quarter to $30.67 billion (27.9 billion euro) as sales of its cars and trucks fell in South America fell because of the faltering economies of Brazil and Argentina.

Globally, Fiat Chrysler vehicle sales fell 1% to 1.17 million new cars and trucks.

The automaker, which is under investigation by the U.S. Securities and Exchange Commission and the U.S. Justice Department for the way it reports sales of its cars and trucks, could face tough questions from Wall Street analysts Wednesday.

On Tuesday, the company restated its monthly sales for every month going back to January 2011 and said it has changed the way it reports monthly sales. The automaker, which had reported year-over-year monthly sales increases for 75 consecutive months, also said its sales streak would have ended in September 2013 under the new reporting system.

The company's share price rose 12 cents, or 1.8%, in pre-market trading to $7 per share.