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Chrysler Profits Jump 22%
Chrysler Group LLC's net income in the second quarter surged to $619 million compared with $507 million in April-June 2013, driven by a 14% hike in revenue to $20.5 billion.
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Chrysler Group LLC's net income in the second quarter surged to $619 million compared with $507 million in April-June 2013, driven by a 14% hike in revenue to $20.5 billion.
Modified operating profit for the quarter jumped 22% to $985 million, thanks to higher volume and a richer sales mix. Free cash flow gained about $1 billion to $13.3 billion.
Vehicle sales in the second quarter grew 12% to 723,000 units, led by a 43% jump to 269,000 in global Jeep SUV volume. Sales of Ram trucks climbed 15% to 145,000 units. Chrysler's volume in the U.S. advanced 14% to 544,000 units, and its market share rose to 12.1% from 11.4% in the second quarter of 2013.
Chrysler accounted for 62% of second-quarter group operating profit for owner Fiat SpA.
Chrysler-Fiat CEO Sergio Marchionne tells analysts he is "grossly dissatisfied" with Chrysler's margins and will seek to improve them by trimming sales incentives, adjusting prices and modifying the global sales distribution for its highly profitable Jeep brand.
Marchionne also says Chrysler will meet with suppliers to discuss their double-digit margins in a bid to "participate in their well-being."
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