Chrysler News: Chrysler Announces $1.7 Billion In Net Income, Revises Product Plan

[William Maley]

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By William Maley

Staff Writer - CheersandGears.com

January 30, 2013

Today, Chrysler announced its earnings for 2012 and the results are staggering. The company reported a net income of $1.7 billion, up substantially from minuscule $183 million profit earned in 2011. Chrysler also saw their 4th quarter net income increase from $225 million in 2011 to $378 million in 2012. The massive increases is due to Chrysler's market share increasing to 11.4%.

Chrysler also unveiled a updated product plan for all of its brands. The big news is that Chrysler and Dodge have dropped their Fiat-based models. Instead, Fiat will introduce five new models including compact and subcompact cars.

Here is the full breakdown:

Alfa Romeo:

• 2013 will hopefully see the arrival of the 4C
  
• In 2015, four new models will be arriving.
  

Chrysler:

• Originally Chrysler was to have three small vehicles built by Fiat in 2013. However those have been cut.
  
• New 200 is due out in 2014. Another model will get a refresh.
  
• 2015 sees three new models
  

Dodge:

• Much like Chrysler, Dodge is dropping two Fiat built models.
  
• One model will see a refresh this year.
  
• Two models will get a refresh in 2014.
  
• New models are coming in 2015 and 2016.
  

Fiat:

• The three Chryslers and two Dodges will become Fiats. Those will be coming in 2015 and 2016.
  
• 500L coming sometime this year
  

Jeep:

• 2013 will see new Liberty/Cherokee
  
• 2014 is the new subcompact model based on a Fiat platform
  
• 2015 sees two new models. One of them is expected to be a new seven-seat Grand Wagoneer
  
• 2016 will see two models be refreshed
  

Ram:

• Ram ProMaster (Sprinter replacement) due out sometime in 2013.
  
• 2014 will see the Ram van based on the Fiat Doblo
  
• 2016 will see two new Rams
  

SRT:

• 2014 will see the 300, Charger, and Challenger get a refresh.
  
• 2015 is the Viper refresh.
  
• A new model is expected to join in 2016.
  

Source: Chrysler

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected]or you can follow him on twitter at @realmudmonster.

Press Release is on Page 2

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Chrysler Group Reports Full-year 2012 Net Income of $1.7 Billion

Full-year Modified Operating Profit Totaled $2.9 Billion, Up 47 Percent, and Free Cash Flow Was $2.2 Billion

• Chrysler Group LLC’s full-year 2012 net income improved more than eight-fold to $1.7 billion, from $183 million a year ago
  
• Net revenue for the year was $65.8 billion, up 20 percent from $55.0 billion a year ago; fourth-quarter revenue was up 13 percent to $17.2 billion
  
• Modified Operating Profit^(b) improved to $2.9 billion for the year, up 47 percent from the prior year; fourth-quarter Modified Operating Profit was up 40 percent to $711 million
  
• Cash^(d) at year’s end was $11.6 billion compared with $9.6 billion a year ago and $11.9 billion at Sept. 30, 2012; Free Cash Flow^(e) for the year was $2.2 billion compared with $1.9 billion a year ago
  
• Net Industrial Debt^(f) was $1.0 billion at Dec. 31, 2012, an improvement of $1.9 billion from a year ago
  
• Worldwide vehicle shipments were 2.4 million for the year, up 20 percent from 2.0 million a year ago; fourth-quarter shipments were 613,000
  
• Worldwide vehicle sales for the full year 2012 totaled 2.2 million, up 18 percent from a year ago; fourth-quarter sales were 533,000
  

January 30, 2013 , Auburn Hills, Mich. - Chrysler Group LLC today reported preliminary net income of $1.7 billion for the full year 2012, up from net income of $183 million a year ago, exceeding the guidance provided earlier in the year. Full-year 2011 Adjusted Net Income^(a) was $734 million, after adjusting for the $551 million loss on extinguishment of debt recognized in the second quarter of 2011.

“While we are pleased to have achieved strong financial results in 2012, the enterprise we are crafting is not complete,” Chrysler Group LLC Chairman and CEO Sergio Marchionne said. “The goals we’ve set for the year ahead reflect a common desire by everyone from leadership to the shop floor to succeed and sustain the power of the house we are building. Our aim is meaningful, but it is not complicated, and only a preoccupation with quality can achieve it. We pause for a moment to enjoy our accomplishments, but we will not stop. Our continued achievement relies upon maintaining a humble spirit and an intense focus on the integrity of our work. And so we press on.”

For the fourth quarter, net income was $378 million on revenue of $17.2 billion, up 68 percent from $225 million a year earlier. For the year, the Company reported revenue of $65.8 billion, an increase of 20 percent from a year ago, primarily due to higher vehicle shipments.

Modified Operating Profit was $2.9 billion for the year, or 4.4 percent of revenue, up 47 percent from $2.0 billion reported in the prior year. The increase resulted from continuing strong sales and pricing, partially offset by an increase in the proportion of sales from passenger cars, including the Dodge Dart and Fiat 500, versus trucks and SUVs; increased research-and-development costs for future models; and increased spending on advertising. Modified Operating Profit for the quarter was $711 million, a 40 percent increase from the same period last year.

Modified EBITDA^© was $5.5 billion for the year, or 8.3 percent of net revenue, an increase of 15 percent from the prior year. For the fourth quarter, Modified EBITDA was $1.3 billion.

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[David]

Very Exciting to see, I wonder just how long Fiat can really survive. I still see only a rare Fiat on the road and the two dealerships here have hundereds stocked up. No matter what they do for sales prices, they are not moving cars.

I am so glad Chrysler and Dodge are not going with Fiat cars. I know many here have said they build exciting quality product, but their style is ugly to me and many around Seattle that I talk to and quality/reliablility is another I hear brought up all the time. Maybe for the east coast being closer to Europe they love and will go with Fiat, but for west coast, seems Asian and American is the way to go. Mini being the lone exception and even then, the Mini dealership here has cut back on what is in stock as they are not selling much also.

Seems a fickle crowd for compact, subcompact cars.

[vonVeezelsnider]

Looks like Chrysler is going to make a few "premium" vehicles (200, 300, Town & Country Crossover), Dodge will make Grand Caravan, Journey, Charger and maybe the Challenger and the Dart, Jeep is Jeep and FIAT will cover other segments of the market. I'm not sure I like this but here's hoping it works.

[ocnblu]

I have concerns about the American brands in the equation.

[William Maley]

I have concerns about the American brands in the equation.

How so?

[regfootball]

sort of seems like an intent to expand the italian brands...which I don't see being uber successful.

[Robert Hall]

sort of seems like an intent to expand the italian brands...which I don't see being uber successful.

The line 'The three Chryslers and two Dodges will become Fiats' says to me they want to expand the Fiat presence in NA (and also re-introduce Alfa-Romeo). This could be part of a plan to turn Dodge and Chrysler into smaller niche brands like SRT....or the minimizing of platform sharing w/ Fiat could be so they can be sold off or folded if needed. Likewise for separating Ram from Dodge a couple years ago...

Edited January 31, 2013 by Cubical-aka-Moltar

[regfootball]

Not too far off with that assertion