Chrysler Posts Profit Jump, Gains U.S. Market Share
DETROIT (TheStreet) - Chrysler said second-quarter net income rose 141%, reflecting continued success in selling mid-sized cars and trucks in an expanding U.S. market.
Privately held Chrysler said Monday that adjusted net income rose 141% to $436 million as its operations have steadily improved. Revenue rose 23% to $16.8 billion. Including special items, net income rose 218% to $436 million because year-earlier results included a one-time $551 million charge to repay government loans.
Chrysler's modified operating profit rose 49% to $755 million, reflecting strong volume and pricing, partially offset by unfavorable mix as auto sales increased in relationship to trucks and SUVs as well as increases in vehicle content and in research and development spending. In the first six months of 2012, Chrysler has gained 1.4 points in U.S. market share, compared with the same period a year earlier. The compact Dodge Dart came to market during the second quarter.
"Our results reflect a tireless pursuit by the people of Chrysler Group to deliver the very best quality and value across our brands," said CEO Sergio Marchionne, in a prepared statement. "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," Marchionne said.
Unlike competitors Ford(F) and GM(GM) , Chrysler has not seen its financial results diminished by losses in Europe. However, Edmunds.com analyst Jessica Caldwell noted that "even though Chrysler's success in the last 18 months is commendable, it isn't strong enough in the long term to carry its parent company Fiat, which is running into some real problems with the European economic crisis."
Fiat will report its results on Tuesday, while GM will report Thursday.
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