Chrysler Profit For Q2 Up 16% to $507 Million, Full Year Forecast Reduced


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Chrysler Group reported net income of $507 million in the second quarter, with strong sales of SUVs and pickup trucks helping the car company make a profit for the eighth consecutive quarter. Earnings were up 16% from the same period a year earlier when $436 million was made. However, the company reduced its projected full year profit. Second-quarter revenues grew 7 percent to $18 billion, up from $16.8 billion in 2012. U.S. sales were up almost 10%, bettering the industry average of  8 percent, to 479,980. All the company’s brands but Chrysler had improved sales. “I think the (U.S.) market is holding up well and Chrysler is holding up well in that market,” CEO Sergio Marchionne told analysts Tueday morning. Sales will be reported on Thursday and Chrysler is expected to post its 40th straight month of year to year sales gains. The company lowered forecast of net income for the full year from $2.2 billion to somewhere between $1.7 and $2.2 billion. Modified operating profit projections were also lowered from $3.8 billion to between $3.3 and $3.8 billion. A charge of $151 million to cover the voluntary recall of Jeep models to settle a dispute over rear end collision safety with the U.S. National Highway Traffic and Safety Administration.
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