Chrysler has reduced its full-year earnings goal, even if profit during the second-quarter increased 16% thanks to high demand for the Ram and Jeep Grand Cherokee pickups.
Net income increased to $507 million, compared with $436 million in 2012, while sales were up 7.1% to $18 billion. Fiat reported today better-than-expected profit for the second quarter thanks to increased Ram sales and reduced European spending.
Fiat CEO Sergio Marchionne relies on Chrysler and the brand’s 39 straight months of gains in the US to offset losses in Europe. Analysts predicted that automakers will sell 15.4 million vehicles in the US this year, the highest level since 2007, as economy continues to rebound.
Sergio Marchionne, chief executive officer of both companies, is relying on Chrysler and its 39 consecutive monthly U.S. sales gains, to offset losses at Fiat’s mass-market brands in Europe. Automakers may sell 15.4 million cars and light trucks in the U.S. this year, the average of 18 analyst estimates and the most since 2007, as the economy follows the auto industry’s rebound.
“The timing of product launches and capacity increases causes this year’s performance to be biased to the second half,” Marchionne said in the statement. “A continued aggressive drive for excellence and flawless execution will be essential to attain the targets we’ve set for ourselves.”
Chrysler expects operating profit to be between $3.3 billion and $3.8 billion, compared with the previous goal of $3.8 billion. Last year operating profit was $2.9 billion. The automaker expects sales of around 2.6 million vehicles, compared with analysts’ expectations of between 2.6 million and 2.7 million.