Chrysler’s 1st-quarter profit in 2012 quadrupled from $116 million to $473 million

Article by Christian A., on April 26, 2012

Chrysler Group disclosed that its net income for the first quarter quadrupled from $116 million in the same period last year to $473 million. The automaker has set a profit goal of $1.5 billion for the year. Revenue increased 25% to $16.4 billion while U.S. automobile sales rose 39%. CEO Sergio Marchionne commented that the positive quarter is attributed to sales gains that exceed the industry average.

This positive outcome is "affirmation" that the Chrysler team is "maintaining its focus," he added. Marchionne emphasized that they will continue to deliver on the targets in line with their five-year plan. The $1.5 billion target in the net income for 2012 would far outperform the $183 million which the automaker achieved in 2011 as it reported its first annual profit since its 2009 bankruptcy. 

The recent earnings announcement of Chrysler comes after disclosures that the company will allow its operating agreement with Ally Financial Inc. to expire in a year. The company is in discussions with other banks for automobile financing. The interest expense on Chrysler's debt during the first quarter dropped 20% from a year earlier to $277 million. At the end of the quarter, the automaker had $12.6 billion in debt.

 Chrysler confidentially refinanced the debts it owed from its bankruptcy exit to the Canadian, U.S. and Ontario provincial governments in May 2011. In the 12-month period beginning March 31, 2011, the automaker's total liabilities fell $700 million. The company stated that its global automobile shipments for the quarter hit 607,000 units, up 25% from the 485,000 units shipped during the same period last year.

The automaker's goal for the year is 2.4 million units. Global automobile sales rose 33% in the quarter to 523,000 units. The discrepancy of the shipped units to the sold units is primarily due to the automobiles that the company builds for other carmakers such as parent company Fiat S.p.A.

If you liked the article, share on:

Topics: chrysler, profit

Comments

Recommended

Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 2017
The 2018 Jaguar XEL with its stretched-out wheelbase and longer doors is the newest addition to the growing list of premium sedans in China---joining the ranks of Mercedes-Benz C-Class L,...
by - November 21, 2017
Honda this week announced that its all-new 2018 Clarity Plug-in Hybrid will arrive at US dealerships with a starting price of $33,400 beginning on the first of December. Because the...
by - November 21, 2017
Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries