Chrysler logs 22% gain in net income in second quarter of 2014

Article by Christian Andrei, on August 9, 2014

Chrysler Group posted a 22-percent jump in net income in the second quarter of 2014 to $619 million, thanks to record Jeep sales and strong demand for its pickups. The carmaker saw its revenues in the quarter gain 14 percent to $20.5 billion.

The jump allowed Chrysler to capture 0.8 percentage points of market share in the United States to 12 percent after selling 533,000 vehicles in the period, according to the Automotive News Data Center. Global sales at Chrysler jumped 12 percent to 723,000.

Its Jeep brand logged a 43-percent climb in global sales in the second quarter of 2014 to 269,000 units. The Ram brand surged 15 percent in the period to 145,000 vehicles. According to the carmaker, its total sales in the US soared 15 percent in the second quarter of 2014.

Including sales of vehicles made for other carmakers, Chrysler delivered just over 727,000 vehicles in the quarter globally. Chrysler had cash of $13.3 billion (up from the $11.9 billion a year earlier) and had a gross industrial debt of $13 billion (up from the $12.5 billion a year ago).

The carmaker reiterated its full-year 2014 outlook which entails an adjusted net income of between $2.3 billion and $2.5 billion on net revenue of about $80 billion.

CEO Sergio Marchionne quipped that Chrysler is intending take several steps in the remaining half of 2014 to improve margins like speaking with suppliers on what he dubbed as their “envious” margins.

He said he is “absolutely mesmerized” by double digit performances on the supplier base. Marchionne remarked that Chrysler will approach its supplier base in a constructive way to determine how they can participate in their well-being. [source: Chrysler]

Topics: chrysler, income

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