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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.

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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 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.

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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.


Chrysler Earnings Jump 16% – Give Boost to Italian Partner Fiat

But production issues, recalls, were costly problems

by on Jul.30, 2013

Fiat/Chrysler CEO Sergio Marchionne.

Despite paying a heavy price for a string of recent recalls, Chrysler Group LLC reported a 16% increase in earnings during the second quarter of 2013 and the company’s chief executive said he expects even stronger numbers during the second half of the year – though earnings are still expected to fall short of earlier expectations..

But Chrysler earnings would have been even stronger were it not for a major recall to address a Jeep safety issue as well as production shortfalls. Even so, the Detroit maker’s results were enough to provide a much-needed boost to its Italian partner Fiat which quadrupled its own net income for the second quarter despite ongoing problems in its home European market.

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The automaker posted net income of $507 million, compared to $436 million during the same quarter a year earlier. The second quarter marked Chrysler’s eighth consecutive quarter of positive net income. Net revenue increased 7% to $18 billion and Chrysler’s operating profit also increased 7% to $808 million from $755 million a year ago.


Chrysler Earnings Soar Nearly 900%

Only domestic maker to gain market share in 2012.

by on Jan.30, 2013

General Manager Fred Diaz with the Ram 1500 pickup, recently named North American Truck of the Year.

Offering up another sign of its ongoing recovery, Chrysler reported 2012 earnings jump nearly nine-fold, to $1.66 billion, while the maker’s fourth-quarter profit was up 68%, to $378 million.

The news reflects a sharp increase in sales and revenues – Chrysler being the only one of Detroit’s Big Three automakers to gain market share in 2012.

“We pause for a moment to enjoy our accomplishments, but we will not stop,” Sergio Marchionne, CEO of both Chrysler and its Italian alliance partner Fiat, said in a statement.

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Marchionne pointed to soaring demand for key products such as the Jeep Grand Cherokee and the new 2013 Ram 1500, the pickup getting another boost earlier this month when it was named North American Truck of the Year by a jury of 49 U.S. and Canadian journalists.


Chrysler Q3 Earnings Surge 80%

“We’ve changed the conversation,” says CEO Marchionne.

by on Oct.29, 2012

Strong demand for the new Dodge Dart helped drive up Chrysler sales and earnings.

Buoyed by the largest sales increase among all domestic makers, Chrysler saw its earnings surge by 80% during the third quarter, while revenues gained 18%.

The U.S. maker – which is partnered with Italy’s Fiat SpA – has scored the biggest sales gains of any of the Detroit Big Three this year, the increase in demand lagging only key Japanese makers Toyota and Honda which have been recovering from last year’s serious inventory shortages caused by Japan’s March 2011 earthquake and tsunami.

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“We’ve changed the conversation at Chrysler Group,” said Sergio Marchionne, who serves as CEO of both Chrysler and Fiat, the Italian maker now holding a majority stake in its U.S. ally.

Chrysler’s July – September earnings shot to $381 million from $212 million a year ago.  Sales and other revenues rose to $15.5 billion from a year ago.


Chrysler More than Doubles Q2 Earnings

Make could “overshoot” profit target for 2012, says Marchionne.

by on Jul.30, 2012

Good news from Chrysler today for CEO Sergio Marchionne but things aren't likely to be so rosy when partner Fiat reports earnings on Tuesday.

Chrysler Group LLC reported a 141% improvement in its adjusted net income during the second quarter and a 23% increase in revenue over last year’s levels.

The company said preliminary second-quarter financial results, including net income of $436 million, show an $806 million improvement from the $370 million net loss in the same quarter last year, which had included a $551 million charge related to repayment of its government bailout loans.

Excluding the charge, net income increased $255 million, or 141%, period over period, as the company continues to achieve its business targets and improve sales across all brands, Chrysler said. The maker repeated earlier guidance saying it remains on track to report net earnings of $1.5 billion for all of 2012 – and an operating profit of $3 billion.

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“Our results reflect a tireless pursuit by the people of Chrysler Group to deliver the very best quality and value across our brands,” said Sergio Marchionne, Chrysler Group LLC chairman and chief executive officer, who now expects the automaker’s profits to exceed $1.5 billion for the full year. “Together, we are always striving to achieve more, to learn from the past and build upon our successes.”


Chrysler Delivers Best Earnings in 13 Years

Q1 profit beats all of 2011.

by on Apr.26, 2012

Chrysler is "maintaining its focus," says CEO Sergio Marchionne, after announcing $473 million in profits.

Barely three years after it plunged into bankruptcy, the Chrysler Group is reporting its biggest quarterly profit in 13 years, its $473 million in earnings more than the automaker made for all of last year.

The uptick in earnings reflects the maker’s strong sales for January – March period when demand for Chrysler products rose 39%, handily outpacing the U.S. auto industry as a whole.  But Chrysler also benefited from significant interest savings after having paid off its remaining federal bailout loans.

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“Another positive quarter…is affirmation that the Chrysler team is maintaining its focus,” said Sergio Marchionne, CEO of both Chrysler and Fiat, the Italian automaker that assumed control after the American maker emerged from Chapter 11 protection.

Chrysler’s first-quarter earnings were more than four times the $116 profit posted during the first quarter of 2011 – and the biggest figure since the maker reported a $682 million profit during the third quarter of 1998.

But there are some significant differences between then and now.  In 1998, Chrysler’s product portfolio was largely focused on pickups, SUVs and minivans.  While light trucks are still important to the maker, it is now increasingly focused on passenger cars, such as the full-size Chrysler 300C and midsize 200 sedan, as well as the new Dodge Dart it is preparing to launch.

The introduction of the Dart, which is largely based on the platform of the European Alfa Romeo Giulietta, is a “true melding of Chrysler’s and Fiat’s engineering and styling strengths,” said Marchionne. It is likely to become a major test of the alliance between the makers, Fiat now controlling 58.1% of Chrysler stock and planning to push that to more than 70% in the near to mid-term.

Chrysler’s first-quarter performance was buoyed not only by strong sales but a jump in its average transaction price, or ATP, consumers spending about 5% more per vehicle, at $29,234, according to the data tracking service

“Chrysler gained 2 full percentage points of US market share compared to a year ago, while increasing their transaction prices and lowering inventory turn times significantly –all resulting in a much improved bottom line,” said Jesse Toprak, Vice President of Industry Trends and Insights at, who added that Chrysler should get, “full credit for having the most desirable line up of vehicles that they have ever had in their showrooms.”

For the quarter, Chrysler Group revenues rose 25% to $16.4 billion.

There is significant competition in today’s automotive market but the market also continues on an upswing that, barring another economic meltdown should see overall new vehicle sales reach 14 million for 2012, at least 1 million above 2011’s numbers.  Chrysler is expected to maintain its sales and revenue growth, especially if it can hold onto its current market share, 11.5% compared to 9.4% for all of 2011, analysts forecast.

Also assisting its earnings surge, Chrysler is now paying less to borrow money after getting out from under the terms of its federal bailout.  Having paid off its remaining government loans last May it saved $71 million in interest charges during the first quarter, it revealed.

Chrysler received $12.5 billion in assistance from the government before, during and after its emergence from Chapter 11.  The U.S. Treasury has recouped $11.2 billion of that and has written off the remaining $1.3 billion.

The maker does have a number of challenges ahead.  It has to successfully launch the new Dodge Dart, which not only goes up against traditional compact segment leaders like the Toyota Corolla and Honda Civic, but also new domestic challengers such as the Ford Focus and Chevrolet Cruze.

The first-quarter surge in fuel prices – now near record levels in most U.S. markets – could further weaken demand for the pickups and SUVs that remain a core part of the Chrysler line-up. The automaker has been hoping to offset that with updated designs and advanced powertrains, such as the more fuel-efficient V-6 it will offer in the 2013 Ram 1500 truck.

One of the biggest challenges remains the need to build Chrysler’s presence overseas.  It can no longer count on the North American market, Marchionne readily acknowledges.  The maker is now supplying a number of models to European dealers – though they are being sold there through various Fiat brands.

Meanwhile, Chrysler has a number of offerings on display in Beijing this week at the huge Auto China 2012 auto show.  It marks the return to what is now the world’s biggest automotive market.

Chrysler Reports 1st Full-Year Profit Since 1997

“Modified” operating profit hits $2.0 billion; net at $183 million.

by on Feb.01, 2012

Chrysler/Fiat CEO Sergio Marchionne meets with reporters at the 2012 Detroit Auto Show.

For the first time since 1997, Chrysler has ended the year in the black with a net profit of $183 million and a “modified” operating profit of $2.0 billion, the automaker reported this morning.

After standing widespread predictions of its demise on their head, Chrysler now is  predicting another strong performance in 2012, including a double-digit gain in revenue and a 50% increase in operating income.

The figures come as a sharp turnaround for a company that declared bankruptcy less than three years ago and which survived only after receiving a more than $12 billion bailout from the U.S. Treasury.  But the Chrysler of today, now controlled by Italy’s Fiat, is a decidedly different manufacturer that went into Chapter 11 protection shortly after the collapse of a failed merger with Daimler AG of Germany.

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“The house is in good order. We are proud of the work we’ve done,” said Sergio Marchionne, who serves as Chief Executive Officer of both Chrysler Group LLC and Fiat SpA. “Now we greet a new year of high expectations with our heads down, forging ahead and focused on executing the goals we’ve set for ourselves as a company.”


Chrysler Operating Earnings Could Near $2 Billion

Maker likely to report first annual net profit since 1997.

by on Jan.30, 2012

A reason to smile for Chrysler CEO Marchionne?

Borrowing the title of a ‘60s-era counterculture novel, Chrysler executives might say, “Been down so long it looks like up to me,” especially if preliminary estimates hold true on Wednesday.  That’s when the long-troubled U.S. maker plans to report its fourth quarter and full 2011 financial figures which – analysts anticipate – could see as much as $2 billion in full-year operating profits.

That would mark the first time Chrysler will have gone into the black for the full year, on an operating basis, since 1997, just before its ill-fated “merger-of-equals” with German’s Daimler AG.  Significantly, the announcement of any full-year profit would come as a stark contrast to the situation the maker found itself in less than three years ago, when it was forced to file for Chapter 11 bankruptcy protection.

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On a net basis, the maker went $42 million into the red for the first nine months of 2011 – but that figure includes $551 million in second-quarter charges resulting from CEO Sergio Marchionne’s decision to pay off Chrysler’s federal bailout loans years ahead of schedule.  Even with those charges, the smallest of the Detroit makers is expected to land in the black for the full year.


Chrysler Q2 Bottom Line Hammered by Debt Repayment Costs

Maker would have been $181 million in the black.

by on Jul.26, 2011

Marchionne sees a silver lining despite the second-quarter loss at Chrysler.

Chrysler reports it lost $370 million for the second quarter of 2011, a sharp setback from its first-quarter profit – but the maker notes it would have been solidly in the black but for the cost of paying off its government loans.

With net revenues of $13.7 billion, an increase of 30%, the maker says earnings for the April – June quarter would have reached $181 million without the finance charges.   Chrysler earned $116 million during the January to March quarter of this year, its first profit since emerging from Chapter 11 protection in June 2009.

Chrysler’s loss was announced at the same time Ford Motor Co. revealed its second-quarter earnings declined slightly to $2.4 billion.  (Click Here for more on Ford.) Chrysler CEO Sergio Marchionne is meanwhile expecting to announce a sweeping global realignment, this week, that will further consolidate the U.S. maker and its Italian ally Fiat.

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On May 24, Chrysler finished repaying the $7.5 billion in loans it owed to the U.S. and Canadian governments as part of its 2009 bailout. (For the full story, Click Here.) Refinancing the remaining debt resulted in a one-time charge of $551 million during the second quarter.  Adjusting for that and other factors, Chrysler claimed a modified operating profit of $507 million, compared with $183 million for the second quarter of 2010.

So, despite the red ink, Marchionne sounded a bullish note about the latest results, declaring, “There is no doubt that Chrysler Group has taken a huge step forward this quarter.