Chrysler banks $507 million in Q2, trims 2013 earnings forecast
 

From AB






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.