Chrysler reports 80% increase in third quarter net profit to $381 million

Article by Anita Panait, on October 31, 2012

Chrysler Group posted an 80-percent increase in net profit for the third quarter of 2012 to $381 million, compared to $212 million in net profit for the same period in 2011. The carmaker’s profit feat was primarily attributable to strong sales of cars and light trucks in North America, which enabled it to post 30 consecutive months of year-over-year sales gains.

Chrysler logged an 18-percent hike in revenues in the third quarter of 2012 to $15.5 billion, as the carmaker recorded a 12-percent jump in global vehicle sales to 556,000 units.

Sergio Marchionne, Chrysler’s chief executive, said that the carmaker continues to “work feverishly” and is pleased to see its aspiration for excellence is translating into results." The carmaker affirmed its earnings guidance of $1.5 billion for full year 2012, and said that it is expecting free cash flow of more than $1 billion.

Chrysler posted $183 million in net profit in 2011, its first in black after emerging from bankruptcy in 2009. Chrysler posted $1.3 billion in net profit for the first nine months of 2012, compared to $509 million in net profit for the same period in 2011. Chrysler ended the third quarter of 2012 with $11.9 billion in cash, down from the $12.1 billion at the end of June.

The carmaker is getting ready for a number of major product launches in 2013 and 2014. The company posted a 46-percent increase in modified operating profit to 706 million, or 4.6% of revenue, for the third quarter of 2012, compared with from $483 million for the same period in 2011.

For the first nine months of 2012, Chrysler logged a 50-percent hike in modified operating profit to $2.2 billion. The carmaker attributed the hike in part to increased sales volumes and pricing. The hike was partially offset by a mix that favored less profitable passenger car sales instead of pickups and sports utility vehicles.

If you liked the article, share on:

Topics: chrysler, profit

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019