Chrysler Reported its 3rd quarter earnings and experienced a nearly $300 million positive swing as the company reports net income of $212 million.
In the third quarter of 2011, net revenue was $13.1 billion, a 19 percent increase from the third quarter of 2010, driven by increased demand for Chrysler Group’s 16 all-new or significantly refreshed cars and trucks.
The Company reported a Modified Operating Profit of $483 million for the quarter, or 3.7 percent of net revenue, up from $239 million, or 2.2 percent of net revenue, in 2010. Modified Operating Profit benefited from increased sales volume and improved pricing and mix, partially offset by increased advertising and industrial costs.
“In the third quarter, Chrysler Group achieved increased sales and positive financial results, totally in line with the plan we laid out in November 2009. And in October, together with the United Auto Workers, we crafted a solid four-year contract that will support us in our growth plans and significantly reward our employees for their contribution to the revival of Chrysler,” said Sergio Marchionne, Chairman and Chief Executive Officer, Chrysler Group LLC. “This house continues to be fully focused on financial performance and making outstanding cars and trucks by fully leveraging its alliance with Fiat.”
It is clear that the alliance with Fiat has worked well and exceeded nearly everyone’s expectations. The company is introducing new vehicles with much improved interiors and exterior styling that unmistakably says, “Chrysler.”
The company has raised its financial performance projections for the full year, based upon the 24 percent rise in year-to-date sales compared to last year.
It seems as if Fiat is using the Chrysler dealer network to launch the Fiat line of vehicles across the country, and using the Fiat dealer network in Europe to stimulate Chrysler vehicle sales internationally. Those international sales have been key in helping Chrysler improve its performance.
The darkest clouds seem to have passed for Chrysler. If the company can continue to execute its product launches effectively (16 products launched so far), and improve the quality as shown by J.D. Power and Consumers Reports, they will have truly turned the corner and be on their way to a much brighter future.