Chrysler has some good news and some bad news. First, profits were up 16 percent over the second quarter of 2012, bringing the Auburn Hills, Michigan-based manufacturer $507 million on the back of strong demand for trucks and SUVs (a recurring theme this quarter, particularly in the US). Q2 revenue was up as well, from $16.8 billion in 2012 to $18 billion in 2013. The bad news is that the Pentastar's overall earnings forecast for net income in 2013 has been trimmed from $2.2 billion to between $1.7 and $2.2 billion, according to Automotive News.

In addition to the adjusted net income forecast, Chrysler tweaked its operating profit from $3.8 billion to between $3.3 and $3.8 billion. This has gone largely unexplained by Chrysler, perhaps hoping the news of a three-percent increase in its transaction prices for Q2 will allow it to sweep this adjustment under the rug.

The star of the show for Chrysler has been its US sales, which saw a 10-percent jump, both bettering the industry average of eight percent and improving over the same stretch of 2012. As with the increase in transaction prices, Chrysler has the new Ram pickup and Jeep Grand Cherokee to thank. Perhaps most worrying from this report, though, is that every brand in the automaker's stable saw an increase in sales... except for the Chrysler brand itself.

Chrysler's minor woes aside, the second quarter has largely been a good one for American brands, with Chrysler joining Ford and GM in seeing healthy profits on the backs of strong new product. Chrysler CEO Sergio Marchionne also released a letter to the company's employees about all of this, which you can read over at The Detroit News.
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Chrysler Group Reports Second-Quarter Net Income of $507 Million

Modified Operating Profit for the Quarter was $808 million, from $755 Million a Year Ago


- Chrysler Group LLC net income for the second quarter of 2013 was $507 million, an increase of 16 percent from $436 million a year ago

- Net revenue for the quarter was $18.0 billion, up 7 percent from a year ago
Modified Operating Profit(b) increased 7 percent to $808 million in the second quarter, from $755 million a year earlier

- Free Cash Flow(e) for the second quarter totaled $91 million; Cash(d) as of June 30, 2013, was $11.9 billion, comparable with March 31, 2013, and slightly lower than $12.1 billion a year ago

- Net Industrial Debt(f) was $656 million at June 30, 2013, up slightly from $619 million at March 31, 2013, and $432 million a year ago

- Worldwide vehicle shipments were 660,000 for the quarter, up 5 percent from 630,000 a year ago

- Strong worldwide vehicle sales for the second quarter of 643,000, up 10 percent from a year ago, were driven primarily by a 17 percent increase in U.S. retail sales

- U.S. market share was 11.4 percent for the second quarter, compared with 11.2 percent a year ago; Chrysler Group market share was 15.1 percent in Canada, up from 14.5 percent a year ago

- Full-year 2013 Modified Operating Profit and net income guidance revised

July 30, 2013 , Auburn Hills, Mich. - Chrysler Group LLC today reported its preliminary second-quarter 2013 results, including net income of $507 million, an increase of 16 percent from $436 million in the same quarter a year earlier. The second quarter marks the Company's eighth consecutive quarter of positive net income.

Net revenue was $18.0 billion for the second quarter of 2013, an increase of 7 percent from $16.8 billion for the same period last year, primarily driven by an increase in vehicle shipments, including the new Jeep Grand Cherokee and Ram pickup trucks. Net revenue totaled $33.4 billion for the first half of 2013.

"Chrysler Group is poised for a very strong performance in the second half of the year, with the new Jeep Grand Cherokee and Ram 1500 pickup earning best-in-class recognition, and the all-new Jeep Cherokee now rolling off the line," Chrysler Group LLC Chairman and CEO Sergio Marchionne said. "As we have highlighted previously, the timing of product launches and capacity increases causes this year's performance to be biased to the second half, and a continued aggressive drive for excellence and flawless execution will be essential to attain the targets we've set for ourselves."

Modified Operating Profit was $808 million, or 4.5 percent of revenue, in the second quarter, versus $755 million reported in the prior year. The 7 percent increase was primarily due to higher shipment volumes and positive pricing, partially offset by higher industrial and launch-related costs, as well as a $151 million charge related to the voluntary safety recall for the 1993-1998 Jeep Grand Cherokee and the 2002-2007 Jeep Liberty, and the customer satisfaction action for the 1999-2004 Jeep Grand Cherokee. Modified Operating Profit was $1.2 billion for the first half of the year.


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  • 42 Comments
      Craig
      • 1 Year Ago
      Chrysler designs are marginal at best, most still have that boxy look. The fronts of most of the models look like a large mouth bass chasing a lure. But to each his/her own.
      aatbloke1967
      • 1 Year Ago
      Autoblog - making $507 million is not the same as banking it. Profit isn't cash.
      luigi.tony
      • 1 Year Ago
      Shouldn't this say FIAT banks 507 million as FIAT owns Chrysler.
        • 1 Year Ago
        @luigi.tony
        [blocked]
        magus47
        • 1 Year Ago
        @luigi.tony
        Fix It Again Tony
        BRETT
        • 1 Year Ago
        @luigi.tony
        no............they own a majority of chrysler, but not 100% if they owned all of it, then it would say fiat banks.............. unless they wanted to keep the chrysler name.
        icemilkcoffee
        • 1 Year Ago
        @luigi.tony
        The UAW pension fund owns a pretty big share of Chrysler too.
        Jesus!
        • 1 Year Ago
        @luigi.tony
        Actually Fiat is in the hole. Dodge, Jeep, and Ram made money.
      msgpcastle
      • 1 Year Ago
      WOW They still keep making bad business decisions and will expect the government to again bail them out. The next one will be what 4 times.
      • 1 Year Ago
      [blocked]
      Jesus!
      • 1 Year Ago
      Why is it worrysome that Chrysler itself is down? The product is outdated! When the new 200 comes and other products(so long as they look good), they will be back on the rise.
        RamSport
        • 1 Year Ago
        @Jesus!
        I don't see down in any of that article aside from the total forecast being altered a little. Sales are UP ad profits are UP. How is that down?
          Jesus!
          • 1 Year Ago
          @RamSport
          Ok people lets read. 3rd paragraph last sentence.
          RamSport
          • 1 Year Ago
          @RamSport
          I still don't see an issue. Just because the Chrysler brand didn't increase, that is a reason to worry???
        mt1975
        • 1 Year Ago
        @Jesus!
        back on the rise to the repair sales numbers.
      mt1975
      • 1 Year Ago
      Don't buy this junk, and you won't have to hear about bailing out the worst vehicle producer. You know it's always New American vehicles sitting on the side of the interstate. I've never seen a Toyota, Honda or Nissan, BMW, Volvo, it's always the big three broken down on teh side of the road. Heck two days ago it was a brand-new Dodge Mini-van or looked the part sitting on the side of Interstate 94 in Ann Arbor, Michigan. JUNK JUNK JUNK
      Dave
      • 1 Year Ago
      What's really worrisome is that they are delaying new product and using the cash for financial maneuvering to merge with Fiat and to help stop its bleeding. This is very similar to what Diamler did when they took over Chrysler. They used all of its cash to bolster losses elsewhere in the company, invested very little in new product, and left it a mess with dated product that nobody wanted.
        icemilkcoffee
        • 1 Year Ago
        @Dave
        Daimler wasnt as bad as Cerberus Capital that came in after Daimler. Now those guys just tried to squeeze every dime of cash out of Chrysler without reinvesting anything in future product developments.
        RGT881
        • 1 Year Ago
        @Dave
        Agreed - I'm puzzled as to why the new Jeep Cherokee isn't on sale yet during the Summer & Fall months when it is ideal to move the new product. Here in Michigan I see a ton of prototypes without camouflage being driven around as personal cars. I know there were official PR excuses regarding factory tooling, and while that's true somewhat, the deeper issue is with the lack of money getting to Chrysler.
          RamSport
          • 1 Year Ago
          @RGT881
          The real reason is that they want to car to be as perfect as it can be before they send all those vehicles out to customers
      gilead82
      • 1 Year Ago
      I think that FIAT is prolonging the inevitable. I know they drool at the thought of gaining headway in the US market. After all they are a major player in the rest of the world. But the fact is Americans don't want FIATs, no matter how Americanized they are. Chrysler shoulda went out before the first bail-out. It's just a matter of time now. As cool as Alfa, Maserati and Ferrari are, they aren't going to savethem on this contininent. Reviving the Dart name just brings back memories of Olive green econoboxes with plastic & cardboard upholstery and rubber floor mats with noisy, anemic engines. A Falcon or Nova was a major step up for a comparable price. They shoulda surveyed some of us 40 somethings before reviving that badge. They won't go anywhere unless they come up with something alot better.
      babby201
      • 1 Year Ago
      I don't know what is so bad about trimming a "Forcast" ,seems to me to be the honest thing to do ,and not lie to potential stock buyers ,then get caught out short later and looking like a crook . Much better than the old days when they made too many cars than the market could absorb to make their forcast numbers ,then have to start dumping them in mid season with outrageous rebate programs .
      luigi.tony
      • 1 Year Ago
      butthurt mopar can't stand that FIAT owns them now.
      • 1 Year Ago
      [blocked]
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