Chrysler announced it keeps its 2013 forecast even if net income during the first quarter fell 65% on higher product costs and declining shipments.
During the first quarter Chrysler’s net income fell to $166 million, revenue dropped 6% to $15.4 billion, while adjusted operating profit fell 41% to $435 million. Chrysler said it will keep its target for the annual revenue of $72 billion to $75 billion and net income of around $2.2 billion. Fiat and Chrysler CEO Sergio Marchionne relies on the US automaker’s US sales gains to offset Fiat’s losses in Europe. Chrysler’s US market share reached 11.4% last year and sales increased 21% to 1.65 million.
Chrysler’s “disciplined production kept inventory at a reasonable level,” Richard Hilgert, an analyst for Morningstar Equity Research in Chicago, said in an e-mail. “The results were in line with my expectations, maybe a bit better.”
At the end of January Marchionne said that shipment volume will be affected during the first quarter by the introduction of the Ram Heavy Duty pickup and the Jeep Compass, but also by the preparation for the new Jeep Cherokee, for which Liberty production was ended in 2012.
“We need to clean up our act and move it on from here,” Marchionne said on a call today with analysts and investors. “We will get better as we move through 2013.”