Chrysler reports $464M net income for Q3

Wed, 30 Oct 2013

Chrysler has just announced earnings of $464 million in net income for this third quarter, a 22-percent year-over-year increase. Net income for the first three quarters of 2013 is at $1.1 billion. Net revenue climbed significantly as well, to $17.6 billion, a 13.5-percent increase on Q3 of 2012.

Those increases were thanks in no small part to an eight-percent rise in sales from the same period last year, with 603,000 vehicles sold worldwide. "Chrysler Group's ninth consecutive quarter of positive net income highlights our commitment to producing award-winning vehicles for consumers, such as the Jeep Grand Cherokee and the Ram 1500," said Sergio Marchionne, Chairman and CEO of Chrysler Group.

Despite the increased sales, Chrysler's US market share dropped slightly, from 11.3 percent in Q3 2012 to 11.2. Canadian market share remained level at 14.3 percent. Have a look below for the entire press release from Chrysler.

Chrysler Group Reports Third-Quarter Net Income of $464 Million

Modified Operating Profit for the Quarter was $862 Million, From $706 Million a Year Ago
Chrysler Group LLC net income for the third quarter of 2013 was $464 million, an increase of 22 percent from $381 million a year ago
Net revenue for the third quarter was $17.6 billion, up 13.5 percent from a year ago
Modified Operating Profit(b) increased 22 percent to $862 million in the third quarter, from $706 million a year earlier
Free Cash Flow(e) for the third quarter was negative $343 million; Cash(d) as of Sept. 30, 2013, was $11.5 billion, down from $11.9 billion at both June 30, 2013, and Sept. 30, 2012
Net Industrial Debt(f) was $888 million at Sept. 30, 2013, up from $656 million at June 30, 2013, and $693 million a year ago
Worldwide vehicle shipments were 593,000 for the quarter, up 6 percent from 559,000 a year ago

Worldwide vehicle sales for the third quarter were 603,000, up 8 percent from a year ago, driven primarily by a 16 percent increase in U.S. retail sales
U.S. market share was 11.2 percent for the third quarter, compared with 11.3 percent a year ago; Chrysler Group market share was 14.3 percent in Canada, the same as a year ago
Full-year 2013 guidance is confirmed

October 30, 2013 , Auburn Hills, Mich. - Chrysler Group LLC today reported its preliminary third-quarter 2013 results, including net income of $464 million, an increase of 22 percent from $381 million in the same quarter a year earlier. The third quarter marks the Company's ninth consecutive quarter of positive net income. Net income for the first nine months of 2013 totaled more than $1.1 billion.

Net revenue was $17.6 billion for the third quarter of 2013, up 13.5 percent from $15.5 billion for the same period last year, primarily driven by an increase in vehicle shipments, including the Jeep Grand Cherokee and Ram pickup trucks. Net revenue totaled $50.9 billion for the first nine months of 2013.

"Chrysler Group's ninth consecutive quarter of positive net income highlights our commitment to producing award-winning vehicles for consumers, such as the Jeep Grand Cherokee and the Ram 1500," Chrysler Group LLC Chairman and CEO Sergio Marchionne said. "We also are pleased to introduce the already award-winning Jeep Cherokee to the lineup, as it launches into the largest SUV segment in the United States."

Modified Operating Profit was $862 million, or 4.9 percent of net revenue, in the third quarter, versus $706 million reported in the prior year. The 22 percent increase was primarily due to higher shipment volumes and positive pricing, partially offset by higher industrial and launch-related costs and vehicle content enhancements. Modified Operating Profit was $2.1 billion for the first nine months of 2013.

About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 to establish a global strategic alliance with Fiat S.p.A., produces Chrysler, Jeep, Dodge, Ram, SRT, FIAT and Mopar vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group's culture of innovation, first established by Walter P. Chrysler in 1925, and Fiat's complementary technology that dates back to its founding in 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300 and Town & Country, Jeep Grand Cherokee, Dodge Dart, Ram 1500, SRT Viper and Fiat 500. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

By Brandon Turkus