Chrysler Profits up on Strong U.S. Sales image

Chrysler Group LLC rebounded in its second quarter, helped mostly by robust sales in the U.S. and as well on the absence of debt charges recorded last year.

Chrysler Group reported second-quarter net income of $436 million, compared with a net loss of $370 million a year ago.
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.

Worldwide vehicle sales for the quarter jumped 20 percent from last year to 582,000 units. This is mainly attributed to U.S. sales that grew 24 percent on impressive retail demand.

Chrysler’s U.S. market share increased to 11.2 percent from 10.6 percent a year ago, while its market share in Canada was 14.5 percent.

“Our results reflect a tireless pursuit by the people of Chrysler Group to deliver the very best quality and value across our brands,” Chrysler and Fiat CEO Sergio Marchionne said in a statement. “Together, we are always striving to achieve more, to learn from the past and build upon our successes.”

The automaker, now majority-owned by Italy’s Fiat SpA, also backed an earlier profit forecast of about $1.5 billion for the year. Such a performance would have been unthinkable three years ago, when Chrysler nearly ran out of cash and needed the bailout to survive.

Fiat-Chrysler Chairman and CEO Sergio Marchionne urged Chrysler employees not to forget the company’s recent near-death experience as they celebrate its latest success.