MILAN (Reuters) - Fiat Chrysler (FCA) <FCHA.MI> reported better-than-expected third-quarter earnings and promised to pay 2 billion euros (1.77 billion pounds) in extraordinary dividends using proceeds from the Magneti Marelli sale, pushing shares up more than 1 percent.
FCA last week agreed a deal to sell parts unit Magneti Marelli to Japan's Calsonic Kansei for 6.2 billion euros.
The world's seventh-largest carmaker said on Tuesday adjusted earnings before interest and tax (EBIT) for the July-September period rose 13 percent to 1.995 billion euros, compared with 1.87 billion euros in a Reuters poll of analysts.
Sales rose 9 percent to 28.77 billion euros, above expectations.
FCA confirmed its operating guidance for the full year. However, its forecast for net cash was reduced to between 1.5-2.0 billion euros from around 3 billion euros.
(Reporting by Agnieszka Flak; editing by Stephen Jewkes)