Fiat Chrysler's adjusted operating profit fell 29 per cent in the first quarter as sales slowed in its North American profit centre and in Europe.
Adjusted earnings before interest and tax totalled 1.07 billion euros (US$1.19 billion) in the January-March period, the company said Friday.
Revenue fell five per cent to 24.5 billion euros.
Fiat Chrysler maintained its guidance for 2019 earnings, saying it still expects adjusted earnings before interest and taxes above 6.7 billion euros.
Fiat Chrysler CEO Mike Manley said in a statement the market was responding "enthusiastically" to the roll out of new models and that the Italian-American carmaker would continue efforts to strengthen underperforming parts of its business.
"Based on these factors and our first quarter results being in line with our expectations, we are confident in our 2019 guidance," he said.
Operating profit margins in North America fell to 6.5 per cent, down 90 basis points from the same period a year ago.
Analysts and investors have been worried about FCA's over-reliance on North America, which accounted for nearly all -- 98 per cent -- of profits in the quarter while operations in Asia and Europe remain unprofitable.
The carmaker said it shipped 1.037 million vehicles in the first quarter, a decline of 14 per cent from a year earlier.
Losses in China and Europe offset earnings from strong but slowing sales of SUVs and trucks in North America.
The company is counting on the new Jeep Gladiator pickup and heavy-duty Ram truck to boost second-half profits.
Sales are flagging amid a broader slowdown in North America, where Fiat Chrysler derived 86 per cent of adjusted profit last year. U.S. deliveries slipped three per cent in the first quarter, with only the Ram brand posting volume growth.
Manley warned in February that the first half of 2019 would be weaker than a year ago because the company is no longer benefiting from selling two versions of the Jeep Wrangler -- the latest generation and a now-retired model.
FCA is in the midst of a turnaround plan in Asia, where it lost money for the fourth consecutive quarter. Manley announced a restructuring of Fiat’s Chinese joint venture with Guangzhou Automobile Group Co. this week, consolidating sales operations and appointing new leadership to “more rapidly respond” to changes in the local market.
Jeep sales have been a disappointment in China, which is experiencing its first market slowdown in almost three decades. European margins have been shrinking as tightening emissions regulations force the automaker to spend more on electrification while wrestling with weaker sales.
The company is at risk of paying fines to the European Union because it’s behind on new emissions standards that take effect next year.
Bloomberg and Reuters contributed to this report.