Chrysler Group LLC today reported net income of $212 million Q3, compared with a net loss of $84 million a year ago. In the third quarter of 2011, Chrysler Group net revenue was $13.1 billion, a 19% increase from Q3 of 2010, mostly as the result of increased demand for Chrysler Group’s trucks, minivans and cars in North America.
As a result, Chrysler reported an operating profit of $483 million for the quarter, or 3.7% of net revenue, up from $239 million or 2.2% of net revenue in 2010. Chrysler benefited from increased sales volume – particularly from Dodge trucks and Jeep, and improved pricing and so called mix, partially offset by increased advertising and investment costs to refurbish plants and update products.
Chrysler results stand in contrast to larger Ford Motor, which yesterday reported third quarter 2011 net income of $1.6 billion, or 41 cents per share, on revenue of $33.1 billion, an increase of $4.1 billion from Q3 2010. Ford Q3 2011 pre-tax operating profit was $1.9 billion, or 46 cents per share, with an operating margin of 4.8%. Chrysler remains the smallest and weakest of the Detroit Three with limited international operations. Still, Chrysler is clearly on the mend as sales improve, although cash flow remains negative and required future product investments are expensive.
“This house continues to be fully focused on financial performance and making outstanding cars and trucks by fully leveraging its alliance with Fiat,” said Sergio Marchionne who is CEO of both companies.
Chrysler global vehicle sales were 496,000 in the third quarter, up 24% from 401,000 vehicles in Q3 of 2010. There was an increase in Chrysler Group’s U.S. market share to 11.4% for the quarter, up from 9.6% a year ago. Canadian market share rose to 14.5% for the quarter, up from 12.8% a year ago. Worldwide vehicle shipments in the third quarter of 2011 were 469,000, an increase of 15%compared with worldwide vehicle shipments of 407,000 vehicles a year ago.
Chrysler said that for the full year of 2011 it would produce net revenue of greater than $55 billion, with an operating profit of more than $2.0 billion.
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