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.

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