Chrysler 3Q profit rises 22 percent on truck demand - KMSP-TV

Chrysler 3Q profit rises 22 percent on truck demand

Posted: Updated:

By DEE-ANN DURBIN
AP Auto Writer

DETROIT (AP) -- Chrysler Group's net income rose 22 percent in the third quarter as strong sales of the Ram pickup and Jeep Grand Cherokee masked weaknesses elsewhere in its lineup.

Chrysler said Wednesday that it earned $464 million in the July-September period. It was the Auburn Hills, Mich.-based company's ninth consecutive profitable quarter.

Worldwide vehicle sales for the third quarter were 603,000, up 8 percent from a year ago. The company's sales outside North America jumped 20 percent to 82,000, including 15,000 sales of Chrysler-made vehicles like the 200 convertible and 300 sedan, which are sold under the Lancia brand in Europe.

Chrysler reaffirmed its profit guidance, which it lowered in July. The company expects a full-year profit of between $1.7 billion and $2.2 billion on revenue of between $72 billion and $75 billion

Overall, it was a lackluster quarter in the U.S., where Chrysler does three-quarters of its business. Chrysler's sales rose 7.7 percent, lagging the total industry increase of 12 percent. The Chrysler, Dodge, Jeep and Ram brands saw sales increases, but Fiat's U.S. sales fell 7.5 percent. Chrysler didn't gain any U.S. market share during the quarter.

The company also delayed shipments of its new small SUV, the Cherokee, to fix issues with a new nine-speed transmission. Scheduled to go on sale in September, the Cherokee began arriving at dealers just last week.

But booming sales of the Ram and Jeep Grand Cherokee, both recently updated, helped boost Chrysler's results.

U.S. sales of the Ram rose 23 percent in the third quarter compared to last year. And buyers paid more -- an average of $36,724 per truck, up 5.3 percent from the year-ago quarter, according to Kelley Blue Book estimates.

Jeep Grand Cherokee sales rose 30 percent, and buyers paid 9 percent more, or $40,175 per vehicle.

Karl Brauer, a senior analyst at Kelley Blue Book, said Chrysler's growth is hindered by aging vehicles like the Chrysler 200 and Dodge Avenger sedans. Chrysler's parent company, Italy's Fiat SpA, has been hurt by the recession in Europe, which is impacting the development of new products, Brauer said.

Fiat is scheduled to report its third-quarter earnings later Wednesday.

Fiat and Chrysler CEO Sergio Marchionne hopes to combine the two companies, but he first must convince the union-run trust that owns a 41.5-percent stake in Chrysler to sell its share to Fiat. The trust says that stake is worth $4.27 billion, while Fiat says it's worth $1.75 billion.

At the trust's request, Chrysler filed paperwork for a public offering of the trust's shares in September. Marchionne has made it clear that he prefers to settle the dispute without an IPO.

  • Local NewsLocal NewsMore>>

  • Pensioners approve Detroit bankruptcy plan

    Pensioners approve Detroit bankruptcy plan

    Monday, July 21 2014 11:39 PM EDT2014-07-22 03:39:04 GMT
    The city of Detroit says workers and retirees have approved pension cuts, a crucial step to emerging from the largest municipal bankruptcy in U.S. history. The city reported results Monday after two months of balloting ended July 11. A judge still must hold a trial to determine if Detroit's overall bankruptcy plan is fair and feasible, but support from retirees is vital.
    The city of Detroit says workers and retirees have approved pension cuts, a crucial step to emerging from the largest municipal bankruptcy in U.S. history. The city reported results Monday after two months of balloting ended July 11. A judge still must hold a trial to determine if Detroit's overall bankruptcy plan is fair and feasible, but support from retirees is vital.
  • DPD's 6th precinct struck by bullets in drive-by shooting

    DPD's 6th precinct struck by bullets in drive-by shooting

    Monday, July 21 2014 11:06 PM EDT2014-07-22 03:06:31 GMT
    Detroit police say bullets struck the 6th Precinct building during a drive-by shooting. This was the same precinct where four officers were shot back in 2011.
    Detroit police say bullets struck the 6th Precinct building during a drive-by shooting. This was the same precinct where four officers were shot back in 2011.
  • City turns down Vinsetta Garage's new parking proposal

    City turns down Vinsetta Garage's new parking proposal

    Monday, July 21 2014 10:31 PM EDT2014-07-22 02:31:49 GMT
    Vinsetta Garage, a popular restaurant in Berkley, proposed to tear down several homes and build a parking lot to solve the parking issue in the neighborhood, but the proposal was turned down Monday at city hall.
    Vinsetta Garage, a popular restaurant in Berkley, proposed to tear down several homes and build a parking lot to solve the parking issue in the neighborhood, but the proposal was turned down Monday at city hall.
  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
Powered by WorldNow

KMSP-TV
11358 Viking Drive
Eden Prairie, MN 55344

Phone: (952) 944-9999
Fax: (952) 942-0455

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices