Chrysler Earnings |
Detroit Bureau on Twitter

Posts Tagged ‘chrysler earnings’

Marchionne Downplays Threat to Fiat-Chrysler Merger

CEO willing to wait out opponent shareholders,

by on Aug.06, 2014

CEO Sergio Marchionne is confident any shareholder backlash will only be a temporary roadblock.

Disgruntled Fiat shareholders could –  temporarily – thwart the completion of the Fiat-Chrysler merger, Sergio Marchionne, chief executive officer of both the Italian and American automakers, conceded.

During a conference call today with analysts and journalists, Marchionne emphasized that an adverse vote would not have a long-term impact on the meshing of the two companies.

Keeping You in the Know!

“We have to see how this game plays out,” Marchionne said during the call. “I am absolutely unfazed by this.”

With Italy teetering on the brink of recession and Fiat stock losing value, speculation is mounting that some Fiat shareholders may opt to cash out rather than accept stock in the new company.


Chrysler Reports 22% Jump in Q2 Profits

Increased sales, better pricing helps maker to strong result.

by on Aug.06, 2014

Jeep is the fastest growing brand in the U.S., according to Chrysler Group, and played a central role in its strong second quarter.

Chrysler Group LLC, which is now part of Fiat Chrysler Automobiles, rode a steady increase in sales to 22% increase in net income during the second quarter.

Net income for the second quarter totaled $619 million for the quarter, compared to $507 million in the year-ago quarter, the Chrysler group said in its preliminary financial report for the second quarter and first half of 2014.

The Leader in Global Automotive News!

Net revenue for the second quarter was $20.5 billion, up 14% from $18 billion a year ago. Net revenue for the first half of the year was $39.4 billion, compared with $33.4 billion a year ago. Increased shipments of vehicles such as the Ram pickup and the all-new Jeep Cherokee drove the year-over-year improvements. Jeep is also now the fastest growing brand in the auto industry. (more…)

Fiat Profits Plunge 55%

CEO Marchionne points to runaway incentives costs.

by on Jul.30, 2014

FCA CEO Sergio Marchionne said the automaker needed to have great results in the next two quarters.

Fiat says its second-quarter profits plunged 55% as the maker’s U.S. partner Chrysler struggled to move old product with new incentives, while the Fiat side of the company dealt with a slowdown in South America.

Fiat, which expects to complete its takeover of the U.S. maker in October, earned a net profit of 197 million Euros, or $264 million, for the three-month period ending on June 30, compared with 435 million Euros a year before. On an EBIT – or earnings before interest and taxes – basis, the numbers dipped to 961 million Euros, or $1.3 billion, from 1.1 billion Euros a year earlier.


“We had a crappy first quarter, a halfway decent second, and we need to have outstanding quarters in the third and fourth,” Sergio Marchionne, CEO of both Fiat and Chrysler, said bluntly during a conference call. (more…)

Chrysler Reaffirms Full-Year Guidance for 2014

Maker needs to grow volume in second half of year.

by on May.12, 2014

Chrysler is looking to make inroads into the competitive midsize market segment with the news 2015 Chrysler 200.

Following a 23% jump in revenue during the first quarter, Chrysler Group LLC expects sales to continue climbing during the balance of the year as the new Chrysler 200 rolls into showrooms, following the successful launch of the new Jeep Cherokee.

While Chrysler reported a net loss of $690 million for the quarter, a result of special charges taken because of Fiat SpA’s acquisition of the United Auto Workers VEBA’s ownership stake in Chrysler. Richard Palmer, FCA’s chief financial officer, said Chrysler was sticking with its original full-year guidance, which includes a substantial sales increase.

On Top of the News!

“The key is we need to grow volume as we go into the second half,” Palmer said during a conference call with analysts. (more…)

Chrysler Group Reports $690 Million Q1 Loss

Charges due to acquisition of VEBA shares put maker in red.

by on May.12, 2014

While the company posted a loss due to special charges, Chrysler's net revenue increased, in part, because of strong sales of the Jeep Cherokee.

Chrysler Group LLC today reported a net loss of $690 million for the quarter, due to special charges related to Fiat SpA’s acquisition the ownership stake in Chrysler held by the United Auto Workers VEBA.

Net revenue was $19 billion for the quarter, up 23% from $15.4 billion in the prior-year period, primarily driven by an increase in vehicle shipments, including Ram pickup trucks and the all-new Jeep Cherokee.

Subscribe and Stay on Top!

Chrysler’s modified operating profit during the first quarter was $586 million, or 3.1% of net revenue, compared with the $435 million reported in the year-ago period. The 35% increase was primarily due to higher shipments and improved mix, which was partially offset by increased vehicle costs due to vehicle content enhancements; higher advertising costs; higher depreciation and amortization costs due to new product launches; and foreign exchange effects. (more…)

FCA Reports 12% Increase in Q1 Revenue

Fiat posts net loss due to $5B VEBA buyout.

by on May.06, 2014

FCA reported a portion of its combined first quarter financial results today.

FCA reported a 12% increase in revenue in the first quarter of 2014 as it reported a trading profit of $800 million on revenue totaling $29.2 billion.

The automaker, however, reported a net loss of $400 million after special items, involving the buyout of the UAW VEBA’s stake, which wound up costing Fiat close to $5 billion. Fiat specifically lost $449 million, compared with a loss of $111 million in the same quarter in 2013.

Beyond the Headlines!

Richard Palmer, FCA’s chief financial officer, said Chrysler pre-paid everything outstanding under the VEBA Trust note by securing a new credit facility and selling senior notes. Chrysler Group, which has helped prop up its Italian partner over the past couple of years, is expected to release a separate financial report sometime next week. (more…)

Chrysler Employees Getting $2,500 Profit Sharing Checks

Maker earns $1.8 billion for 2013

by on Jan.29, 2014

Chrysler employees are expected to received profit-sharing checks of about $2,500 this year.

Chrysler salaried and hourly employees were told today they’ll be getting profit-sharing checks after the maker reported earnings of $1.8 billion in 2013.

Based on a formula that UAW workers ratified in a 2011 contract, workers should expect a maximum profit sharing check of about $2,500 before taxes. That would be the highest profit-sharing check for Chrysler hourly workers since 1999. Last year, Chrysler workers profit-sharing checks averaged $2,250 before taxes.

Your Inside Source!

While employees may be happy to get the extra cash, the amount is about a quarter of the $8,800 checks about 47,000 Ford employees are expecting to get. (more…)

Chrysler Earnings Quadruple in Q4

Maker Reports $1.8 billion earnings for all of 2014.

by on Jan.29, 2014

The belated launch of the 2014 Jeep Cherokee helped buoy Chrysler's Q4 earnings.

Chrysler Group more than quadrupled its earnings for the final quarter of 2014 — in part due to a huge one-time tax gain, but also due to a surge in U.S. car sales.

The smallest of the domestic makers this morning reported net income of $1.62 billion for the fourth quarter, a figure including a $962 million one-time tax benefit.  Even without that boost Chrysler would have come in 74% ahead of the final quarter of 2012.  For the full year, meanwhile, the maker earned $1.8 billion after excluding one-time gains, a 9% bounce over all of 2012.

A Profitable News Source!

The full-year earnings were Chrysler’s best since it exited Chapter 11 bankruptcy protection in 2009.

“The 2013 year-end financial results reflect the commitment Chrysler Group has made to rapidly refresh our product lineup with vehicles that achieve exacting performance standards,” Sergio Marchionne, CEO of both the Chrysler Group and Fiat SpA, said in a statement.


Chrysler Wants IPO Ready by Year-End

“That horse left the barn,” says CEO Marchionne.

by on Oct.30, 2013

Fiat-Chrysler CEO Sergio Marchionne at an awards ceremony for suppliers.

After repeatedly delaying plans for a public stock offering and then suggesting Fiat might sever its ties with Chrysler if it went ahead with an IPO, the CEO of the two automakers now says he’s ready to put the process into overdrive.

“That horse left the barn,” Chief Executive Officer Sergio Marchionne told reporters and analysts during a news conference called to discuss the maker’s third-quarter earnings. “We are now bent on executing the IPO.  I hope that we can get it done by the end of this year.”

Get a Free Subscription!

Fiat initially acquired a 20% stake in the U.S. maker following Chrysler’s emergence from bankruptcy in mid-2009.  Through a series of steps it has increased its holdings to 58.5%, and Marchionne has repeatedly expressed Fiat’s interest in acquiring the remaining 41.5% held by a union retiree health care trust. But the two sides are battling over the worth of the United Auto Workers Union’s holdings in a Delaware court and the union is now pressing to let the market set the price with an IPO.


Chrysler Net Income Surges 22%

Strong truck sales drive results – but mask other problems.

by on Oct.30, 2013

Strong demand for the Ram pickup -- the 2014 diesel model shown here -- buoyed Chrysler's Q3 earnings.

The resurgent boom in pickup sales was good news for the Chrysler Group which saw net income surge by 22% during the third quarter, in sharp contrast to the declines posted by both of the maker’s cross-town rivals.

Chrysler earned $464 million during the July to September period, up from $381 million the year before, marking the once-bankrupt automaker’s nine consecutive quarterly profit. Revenues, meanwhile, jumped 13.5%, to $17.6 billion, on the sale of 603,000 vehicles. That was an increase of 8% from a year ago.

Tracking the Numbers!

But barely one in seven of Chrysler’s products – 82,000 in all — were sold outside North America, in sharp contrast to the results at General Motors and Ford Motor Co., who now depend on overseas markets for the majority of their demand and an increasing share of their revenues. And there are other challenges revealed by Chrysler’s latest earnings report.