Chrysler Group logs 16% jump in second-quarter net income

Article by Anita Panait, on July 30, 2013

Chrysler Group posted a 16-percent rise in net income in the second quarter of 2013 to $507 million, compared to $436 million in the same period in 2012. The carmaker attributed the rise in earnings to strong pickup and SUV sales as well as growth in the United States and around the world. Chrysler logged a 10-percent surge in sales in the US in the second quarter of 2013 to 479,980, outpacing the industry's average rise of 8 percent.

All the carmaker’s brands, except for its namesake Chrysler, posted an increase in sales in the period. Chrysler posted a 7-percent rise in revenues in the second quarter of 2013 to $18 billion, compared to $16.8 billion in the same period in 2012. At the end of the quarter, Chrysler had cash of $11.9 billion, down from $12.1 billion one year ago. Despite posting its eighth consecutive quarterly profit, Chrysler cut its profit forecast for full-year 2013 from $2.2 billion to between $1.7 and $2.2 billion.

The carmaker also updated its projected modified operating profit for 2013 to reflect a downward roll from $3.8 billion to between $3.3 and $3.8 billion.

Chrysler recognized a charge of $151 million to conduct the voluntary safety recall of 1993-98 Jeep Grand Cherokees and 2002-07 Jeep Libertys. As part of a settlement with the National Highway Traffic and Safety Administration, Chrysler agreed last month to install trailer hitch assemblies to recalled vehicles that didn't already have them to increase protection from low-energy rear-end collisions.

"Chrysler Group is poised for a very strong performance in the second half of the year, with the new Jeep Grand Cherokee and Ram 1500 pickup earning best-in-class recognition, and the all-new Jeep Cherokee now rolling off the line,” Chrysler Group LLC Chairman and CEO Sergio Marchionne said. “As we have highlighted previously, the timing of product launches and capacity increases causes this year’s performance to be biased to the second half, and a continued aggressive drive for excellence and flawless execution will be essential to attain the targets we’ve set for ourselves.”

Topics: chrysler, income

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