Chrysler Reports Q3 Net Income At $464M
Chrysler Group has announced that their net income rose to $464 million for Q3. Chrysler saw strong sales of pickup trucks and SUVs. The third quarter profit was up 22% from the $381 million that they posted during Q3 2012. This is Chrysler’s ninth consecutive quarterly profit. Chrysler’s sales increased 8% to 603,000 vehicles in the quarter compared to the industry average of 12%. Chrysler’s Q3 revenue grew 13.5% to $17.6 billion, compared to the 2012 third quarter revenue of $15.5 billion.
Chrysler sold 17,456 more Ram pickup trucks during the third quarter this year compared to last. This is a 23% increase in that segment. Chrysler sold 10,943 more Jeep Grand Cherokees for Q3 2013 than they did last year, which is a 30% increase. Both of these vehicles are Chrysler’s most profitable cars.
Chrysler reported cash of $11.5 billion, which is down from $11.9 billion at the end of June. Their cash stood at $11.9 billion in September 2012. Chrysler had a gross industrial debt of $12.4 billion at the end of September, which is less than the $12.6 billion that they had at the same point in 2012.
2014 Jeep Cherokee Delay
Chrysler said that the delays in the 2014 Jeep Cherokee negatively impacted cash flow for the third quarter. Chrysler CEO Sergio Marchionne said that the Cherokee launch affected their Q3 performance in a negative way. The 2014 Jeep Cherokee started production in on June 24th and did not start shipping to dealers until last week. However, Chrysler is expecting stellar revenues for Q4.
Chrysler said that they are expected to ship around 2.6 million vehicles, which is up about 200,000 from the previous year. Chrysler is expected to hit total 2013 profits of $1.7-$2.2 billion on revenues of $72-$75 billion.