DETROIT (AP) — Chrysler rode big sales increases in the U.S. to a $436 million profit in the second quarter.
A year earlier, the company lost $370 million, mainly because it refinanced government bailout loans.
Unlike other U.S.-based automakers, Chrysler is benefiting from its reliance on the United States car market. While other companies are losing money in Europe, Chrysler has little presence there. The company gets 75 percent of its sales from the U.S., where the market has been growing for the past three years.
Chrysler says second-quarter revenue increased 23 percent to $16.8 billion.
The following is Chrysler's press release concerning their latest
Chrysler Group Second-Quarter 2012 Net Income Increased to $436 Million
Second-Quarter Modified Operating Profit Increased 49 Percent to $755 Million With Free Cash Flow of $866 Million
Chrysler Group LLC today reported its preliminary second-quarter financial results, including net income of $436 million, an $806 million improvement from the $370 million net loss in the same quarter last year, which had included a $551 million charge related to repayment of its government loans. Excluding the charge, net income increased $255 million, or 141 percent, period over period, as the Company continues to achieve its business targets and improve sales across all brands.
“Our results reflect a tireless pursuit by the people of Chrysler Group to deliver the very best quality and value across our brands,” said Sergio Marchionne, Chrysler Group LLC Chairman and Chief Executive Officer. “Together, we are always striving to achieve more, to learn from the past and build upon our successes. Nowhere is our dedication more evident than in the all-new Dodge Dart, with up to 41 mpg highway and levels of customization not typically found in the compact car segment.”
Revenue for the quarter was $16.8 billion, up 23 percent from $13.7 billion in the second quarter of 2011, primarily driven by a 22 percent period-over-period increase in shipments. For the first six months, the Company recorded net income of $909 million on revenue of $33.2 billion.
The Company recorded a Modified Operating Profit of $755 million, or 4.5 percent of revenue, in the second quarter, up 49 percent from the $507 million reported in the prior year. The increase was attributable to strong volume and pricing, partially offset by unfavorable mix as we increased sales of cars versus trucks and SUVs, enhanced vehicle content and increased research-and-development spending for new models. Modified Operating Profit for the first half of the year was $1.5 billion.