Chrysler Earnings Soar 80%

Chrysler Group LLC boosted net income to $381 million in the third quarter of this year from $212 million in the same period of 2011.

Revenue climbed 18% to $15.5 billion. Vehicle sales jumped 12% to 556,000 units, including advances of 13% to 416,600 units in the U.S. and 27% to 68,000 units outside North America. The latter includes 15,000 vehicles made by Chrysler and sold by parent Fiat SpA.

Adjusted operating profit surged 46% year over year to $706 million in the July-September period 4.6% of sales vs. 3.7% a year earlier. Operating profit per vehicle rose $230 to $1,270.

Strong sales and favorable pricing were partially offset by higher vehicle development and advertising costs and an unfavorable mix that skewed toward passenger cars.

Chrysler held $11.9 billion in cash on Sept. 30. The company's cash outflow slowed to $65 million from $699 million in the third quarter of last year. Chrysler confirms its forecast for positive cash flow of more than $1 billion this year.

In the first nine months of 2012, Chrysler swung to a $1.3 billion net profit from a $42 million loss a year earlier. Revenue increased 22% to $48.6 billion. The company reiterates that it expects to earn about $1.5 billion this year on revenue of $65 billion.