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Chrysler’s Profit Plunges by Two-Thirds
Chrysler Group LLC, which is 58.5% owned by Fiat SpA, netted $166 million (€127 million) in the first quarter of 2013 compared with $473 million (€363 million) a year earlier.
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Chrysler Group LLC, which is 58.5% owned by Fiat SpA, netted $166 million (€127 million) in the first quarter of 2013 compared with $473 million (€363 million) a year earlier.
Quarterly revenue slipped 6% to $15.4 billion (€11.8 billion) for the period. Chrysler's retail vehicle sales rose 8% to 563,000 units, mainly because of 12% growth in the U.S. Adjusted operating income plunged 41% to $435 million (€334 million).
Chrysler says first-quarter results were hurt by the cost of several key new-model launches and lower vehicle shipments caused by weak sales in Europe and import restrictions in Latin America.
The company predicts that demand for its redesigned SUVs and large pickup trucks will boost profits through the remainder of the year.
Chrysler generated free cash flow of $356 million (€273 million) in the first quarter compared with $1.7 billion (€1.3 billion) a year earlier. Since the end of 2012, the company has bolstered its cash position by $300 million (€230 million) to a total of $11.9 billion (€9.1 billion) on March 31.
Chrysler reiterates its full-year forecast for revenue of $72 billion-$75 billion (€55 billion-€58 billion), net earnings of about $2.2 billion (€1.7 billion), adjusted operating profit of $3.8 billion (€2.9 billion) and free cash flow of at least $1 billion (€768 million). The company expects to boost wholesale vehicle shipments by at least 8% to 2.6 million units.
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