Chrysler Group had nothing but good news to share this morning as it has reported its financial results for the first quarter of 2012. The headline-hogging number is that the automaker's first quarter profit quadrupled from $116 million a year ago to $473 million this year. All that was on the back of U.S. sales that increased 39 percent year-over-year. The rise in sales also resulted in Chrysler Group increasing its market share in the U.S. from 9.2 to 11.2 percent.

With such an impressive first quarter, Chrysler is targeting an equally impressive year. Its forecast for profit in 2012 has been set at $1.5 billion, while last year it earned just $183 million.

Here are the rest of Chrysler's first quarter financial highlights:
  • Net revenue for the quarter was $16.4 billion, up 25 percent from $13.1 billion last year
  • Has $1.3 billion in free cash flow, ended the quarter with $11.3 billion in cash, up from $9.9 billion last year
  • Net industrial debt was reduced to $1.3 billion from $3.4 billion last year
  • Worldwide vehicle shipments for the quarter were 607,000, up 25 percent from 485,000 last year
  • Fleet sales were 31% of total sales, flat versus Q1 2011
  • Highest Canadian market share of 15 percent, first time ever
  • International sales of Chrysler Group vehicles rose 80 percent to 67k
Show full PR text
Chrysler Group First-Quarter 2012 Net Income More Than Quadrupled to $473 Million
Chrysler Group First-Quarter Modified Operating Profit Increased 55 Percent to $740 Million with Free Cash Flow of $1.7 Billion

• Chrysler Group net income in the first quarter of 2012 more than quadrupled to $473 million
• Net revenue for the quarter was $16.4 billion, up 25 percent from $13.1 billion a year ago
• Modified Operating Profit(a) grew to $740 million for the first quarter, 55 percent higher than a year earlier
• Free Cash Flow(d) for the first quarter totaled $1.7 billion; Cash(c) ended the quarter at $11.3 billion compared with $9.9 billion a year ago and $9.6 billion at Dec. 31, 2011
• Net Industrial Debt(e) was reduced to $1.3 billion at March 31, 2012, from $3.4 billion a year ago and $2.9 billion at Dec. 31, 2011
• Worldwide vehicle shipments were 607,000 in the quarter, up 25 percent from 485,000 a year ago
• Worldwide vehicle sales for the first quarter totaled 523,000, up 33 percent from a year ago
• U.S. market share increased to 11.2 percent for the first quarter, up from 9.2 percent a year ago, driven primarily by a 40 percent increase in U.S. retail sales. For the first time in its history, Chrysler was the quarterly market leader in Canada with a share of 15.0 percent
• Chrysler Group achieved its third and final Class B performance event in January 2012 by committing to produce the fuel-efficient Dodge Dart, increasing Fiat S.p.A.'s ownership interest to 58.5 percent
April 26, 2012 , Auburn Hills, Mich. - Chrysler Group LLC today reported preliminary net income of $473 million for the first quarter of 2012, up more than 300 percent from $116 million a year ago, driven primarily by its 40 percent increase in U.S. retail sales.


"Another positive quarter – built on sales gains that have surpassed the industry average – is affirmation that the Chrysler team is maintaining its focus," said Sergio Marchionne, Chairman and Chief Executive Officer of Chrysler Group LLC. "We continue to deliver on the targets in our five-year plan and are now focused on successfully launching the Dodge Dart, a car that is a true melding of Chrysler's and Fiat's engineering and styling strengths."

Revenue for the quarter was $16.4 billion, up 25 percent from $13.1 billion in the first quarter of 2011, driven by a 25 percent period-over-period increase in shipments and positive pricing.

The Company reported a Modified Operating Profit of $740 million, or 4.5 percent of revenue, in the first quarter, up 55 percent from the $477 million reported in the prior year. The increase was attributable to strong volume and pricing, partially offset by unfavorable mix, higher industrial costs, including new vehicle content enhancements and engineering, research and development for new models, and continued marketing efforts.


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  • 81 Comments
      Chris
      • 2 Years Ago
      It's nice to see a company that so many left for dead, in their own minds, in 2008 rebound in such a big way. It's a big win for auto enthusiasts. Although I may not agree with everything he has done, I still feel Marhionne understands Chrysler, and what made Mopar exciting to enthusiasts in the first place. I am anxious to see what they do with the Dodge and SRT brands.
      Justin Campanale
      • 2 Years Ago
      Yeah, good job Chrysler. Just one suggestion fom the owner of a soon to be replaced Magnum SRT8 PLEASE offer a real manual transmssion on th largee SRT vehicles. Or at least a dualclutch with paddle shifters. I had to install aftermarket paddle shifters on my car because the only other way to manually override the gearbox was rather cumbrsome.
      viperbono
      • 2 Years Ago
      Congrats Chrysler and its Employees! The bailout was worth it IMO!!!!! Down with the UAW unless major change takes place!
      • 2 Years Ago
      [blocked]
        • 2 Years Ago
        [blocked]
      Jesus!
      • 2 Years Ago
      Happy to see Chrysler doing well as should every American. I have been in a dead heat to either buy a Mustang or Charger next time. Now that Chrysler quality is significantly better, I can take the plunge and not feel like I will be trapped in a disaster. Too bad the Nitro is a cheap and poorly made pos because I absolutely love the way that thing looks.
      Avinash Machado
      • 2 Years Ago
      What a stunning turnaround for a company that almost died a few years ago.
      icemilkcoffee
      • 2 Years Ago
      I'm really glad that they are doing well. But to be honest I can't name one single product of theirs that I am impresssed with. The new Jeep is completely bloated and a good 500+ lbs too heavy. The 200/300/Charger look at least 5 years out of date. The minivan doesn't look too bad but the lowered roofline makes it less practical. I do like the Fiat 500 with the ragtop sunroof, but I gather that is a very low volume seller for them.
      Erik Landerholm
      • 2 Years Ago
      Bailout is not the correct term. It was a loan based on fiat purchasing Chrysler. It was paid back at over 19% interest. Probay one of the best investments the US gov has made in a long time. I have no problem with the gov giving loans or investing in the private sector. It makes a lot of sense and could help the gov find a revenue stream besides taxes.
      johnb
      • 2 Years Ago
      Chrysler's biggest profit since 1998. Isn't that when Daimler swooped in and nearly ruined them?
      Hazdaz
      • 2 Years Ago
      And to think that there were (and still are) scumbags out there that didn't want to give Chrysler loans to survive the downturn. Now this company has quarterly revenue of $16B.
        Car Guy
        • 2 Years Ago
        @Hazdaz
        People who think the federal government should not pick winners and losers in the private equity market are not "scumbags". GM and Chrysler had years and years of mismanagement and should have followed a traditional Chapter 11 bankruptcy, without taxpayer money, and forced to claw their way back like every other company who files and then needs to re-establish themselves. Instead, this method of artificially manipulating the industry preserved union contracts that should have been thrown out by the bankruptcy judge and forced to renegotiate. That was a big political win for this current President. It was a vote buying maneuver pure and simple. There were many losers who got left to twist in the wind. Bondholders lost billions. Hundreds of dealers had franchises stolen from them and forced to close for no good reason. So the union continues to celebrate their "win" despite many others getting screwed. So consider all the facts before you engage in your childish name calling.
          icemilkcoffee
          • 2 Years Ago
          @Car Guy
          First of all- a bankruptcy is in fact a socialist safety net. Your losses get distributed to other people, and you get a fresh start, at the expense of other people. Secondly you have historical amnesia when you wrote "[Chrysler] should have followed a traditional Chapter 11 bankruptcy, without taxpayer money, and forced to claw their way back like every other company who files and then needs to re-establish themselves" Back in that 2008-2009 timeframe there was no private financing for anything. It would have been impossible for Chrysler or GM to get the loan to continue their operation becase the whole financial market was in a panic/meltdown mode. If it wasn't for government bailout these two comppanies would have been as dead as Bear Stearns. By the way- the Bush administration also intervened and bailed out the airline industry post 9/11. How come I don't hear any of you free marketeers rail against that one?
          Hazdaz
          • 2 Years Ago
          @Car Guy
          "That was a big political win for this current President." So it was a big political win for the current President, even though the original loans were approved by the previous President... yeah. Uh, gotcha. :rolleyes: And beyond that, don't give me this BS holier-than-thou nonsense where the government shouldn't "pick winners and losers" because anyone that actually believes that load of horse manure doesn't have a goddamn clue about history or the realities of the real world. Human history - and not just here in the US - is all about companies and individuals that have been lucky enough to have been picked over someone else to electrify a nation or supply us with telephone service that then turns those companies into massive pillars of industry. Having a company that built itself into a pillar of industry and then not supporting them in their time of need would have been a crime against our nation. And concerning the sped-up bankruptcy proceedings, maybe GM should have followed their own corporate red-tape when they were building armaments for the US government back in WWII. Maybe instead of converting its factories from producing cars to producing bombers and artillery for the war effort, they should have kept on keeping on and done a 3 year long market research program to see if it was in their corporate best interests to enter that business. Maybe by September 3rd, 1945, they would have made a decision - I am sure that would have been great for our nation. Why don't YOU learn the facts of life before you continue to spew out already debunked nonsense otherwise that does indeed make you a scumbag.
        guyverfanboy
        • 2 Years Ago
        @Hazdaz
        Morons. Chrysler is in the best shape its ever been! Now, ironically, Chrysler is now helping it's rescuer Fiat due to the sluggish economy in Europe!
          CEC
          • 2 Years Ago
          @guyverfanboy
          Mark: The only tax payer money Chrysler lost was given out under the Bush administration. It totals about 1.2 Billion. That when divided between every person in the US that equals approx $3.00. Can you think of a better way to spend $3.00 and keep hundreds of thousands of people employed?
          Zoom
          • 2 Years Ago
          @guyverfanboy
          Mark, the factory closing, while sad, did not take the entire US economy down with it. That's what would've happened had GM and Chrysler shuttered.
          Mark
          • 2 Years Ago
          @guyverfanboy
          Great, I still don't think it was worth the risk of my hard-earned tax dollars to do it. A major appliance company closed its doors in my home town, why didn't the Feds step in then? Not enough political clout, lobbyists or possibly UAW money to use for Democratic re-elections?
        Mark
        • 2 Years Ago
        @Hazdaz
        It's one thing to find private money to support a failing company, it's an entirely different thing to use public tax dollars to keep a union and mostly Democratic fundraising company open. I'd hope rational people could see the difference.
          Car Guy
          • 2 Years Ago
          @Mark
          Mark, the sad reality is the UAW drones will never see the difference.
      Car Guy
      • 2 Years Ago
      With all this money Chrysler needs to step up, do the right thing, and compensate all the dealers who's franchises were essentially stolen from them and forced to close for no good reason. Many were profitable and still forced to close nonetheless. That is the big injustice in this whole thing that nobody is talking about.
        6speed
        • 2 Years Ago
        @Car Guy
        Wow, really Car Guy? These franchises weren't "stolen". Dealers and Manufacturers have franchise agreements which are NOT permanent. Period. The are subject to renewal every few years, based on several criteria. They are not entitled to franchises just because "it's been in the family for 70 years", or because they claim to be profitable. Funny how the vocal, terminated Chrysler dealers all claimed to be profitable and have high CSI...yeah, right. Most were closed for GOOD reason. Maybe not in the eyes of the dealer who felt an "injustice" was done, but to anybody with an ounce of logic in their thinking. The dealers had their chance to fight. Many did, and most lost. Many others simply chose not to, knowing they'd lose. Nobody is ENTITLED to a new-car franchise, and the fact that Chrysler was able to move toward right-sizing their dealer body was one of the very good things to come out of the situation. Funny how they're managing to sell MORE cars with FEWER dealers...the exact opposite of what these sour-grapes terminated dealers would have led you to believe just a couple years ago.
        CEC
        • 2 Years Ago
        @Car Guy
        There is a big difference between yanking a dealers franchise, and closing the dealer. The three dealerships in my area that got their franchise yanked are still in operation, so I guess Chrysler didn't close any dealers at all. The only dealers that closed, where dealers that where being supported by Chrysler because they weren't profitable.
        MyerShift
        • 2 Years Ago
        @Car Guy
        No, just wrong.
        AMG THIS
        • 2 Years Ago
        @Car Guy
        What? Part of these profits are directly tied to the reduced number of redundant dealerships competing with eachother and causing increased capacity of units that had to be essentially given away at high cost to all involved, including the manufacturer. Customer gets quoted $10,000 for car at dealer A, He drives to dealer B right down the road with quote in hand and gets quoted by them at $9000. Customer then drives back to dealer A and gets quoted at $8000 and buys car. Dealer A then calls corporate and says he needs support money and Chrysler pays for the nonsense because dealer A gave the car away below invoice. Multiply that by 500 times a day and you'll see the big picture. With market share increases some will need to be reinstated (albeit in areas far away from current stores) and older dealer principles that were otherwise in good standing should be considered no doubt. But for the new Chrysler to pay for a previous regimes moronic and horrible mistakes is heinous.
          AMG THIS
          • 2 Years Ago
          @AMG THIS
          Here's another example. How to ruin Apple? Make the prices negotiable and put two apple stores in every large mall. Sit back and watch share price get reduced to junk status and the bankruptcy that follows.
        ragtopdodge
        • 2 Years Ago
        @Car Guy
        Guess what? It took the government's help for a private company to be profitable. Imagine that!
          montoym
          • 2 Years Ago
          @ragtopdodge
          The UAW sure did a number on the Big 3 that's for sure. That's probably not what you meant though, still true nonetheless.
      BombSquad
      • 2 Years Ago
      Chrysler is a dark horse that I just can't help but root for. You could tell there was always great design there that was stifiled by the bean counters. Now that they've got the corporate support, they are finally producing the products I've heard that they wanted internally for many years.
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