Chrysler 3Q profit rises 22 percent on truck demand - Dallas News | myFOXdfw.com

Chrysler 3Q profit rises 22 percent on truck demand

Posted: Updated:

By DEE-ANN DURBIN
AP Auto Writer

DETROIT (AP) -- Chrysler Group's net income rose 22 percent in the third quarter as strong sales of the Ram pickup and Jeep Grand Cherokee masked weaknesses elsewhere in its lineup.

Chrysler said Wednesday that it earned $464 million in the July-September period. It was the Auburn Hills, Mich.-based company's ninth consecutive profitable quarter.

Worldwide vehicle sales for the third quarter were 603,000, up 8 percent from a year ago. The company's sales outside North America jumped 20 percent to 82,000, including 15,000 sales of Chrysler-made vehicles like the 200 convertible and 300 sedan, which are sold under the Lancia brand in Europe.

Chrysler reaffirmed its profit guidance, which it lowered in July. The company expects a full-year profit of between $1.7 billion and $2.2 billion on revenue of between $72 billion and $75 billion

Overall, it was a lackluster quarter in the U.S., where Chrysler does three-quarters of its business. Chrysler's sales rose 7.7 percent, lagging the total industry increase of 12 percent. The Chrysler, Dodge, Jeep and Ram brands saw sales increases, but Fiat's U.S. sales fell 7.5 percent. Chrysler didn't gain any U.S. market share during the quarter.

The company also delayed shipments of its new small SUV, the Cherokee, to fix issues with a new nine-speed transmission. Scheduled to go on sale in September, the Cherokee began arriving at dealers just last week.

But booming sales of the Ram and Jeep Grand Cherokee, both recently updated, helped boost Chrysler's results.

U.S. sales of the Ram rose 23 percent in the third quarter compared to last year. And buyers paid more -- an average of $36,724 per truck, up 5.3 percent from the year-ago quarter, according to Kelley Blue Book estimates.

Jeep Grand Cherokee sales rose 30 percent, and buyers paid 9 percent more, or $40,175 per vehicle.

Karl Brauer, a senior analyst at Kelley Blue Book, said Chrysler's growth is hindered by aging vehicles like the Chrysler 200 and Dodge Avenger sedans. Chrysler's parent company, Italy's Fiat SpA, has been hurt by the recession in Europe, which is impacting the development of new products, Brauer said.

Fiat is scheduled to report its third-quarter earnings later Wednesday.

Fiat and Chrysler CEO Sergio Marchionne hopes to combine the two companies, but he first must convince the union-run trust that owns a 41.5-percent stake in Chrysler to sell its share to Fiat. The trust says that stake is worth $4.27 billion, while Fiat says it's worth $1.75 billion.

At the trust's request, Chrysler filed paperwork for a public offering of the trust's shares in September. Marchionne has made it clear that he prefers to settle the dispute without an IPO.

  • Local NewsLocal NewsMore>>

  • Federal sting ends in gunfire in Highland Park

    Federal sting ends in gunfire in Highland Park

    Friday, August 1 2014 10:37 PM EDT2014-08-02 02:37:55 GMT
    In what started as a traffic stop, resulted in a shootout between federal agents and a pair of men known to have illegal assault rifles in Highland Park.Police say a task force of ATF and FBI agents who had previously set up a meet with two men, known to have AK-47s and AR-15s in their Chevrolet Cavalier, began to move in. The traffic stop was made near Oakland and Victor about 7:30 p.m. Friday. The car rammed the federal agents vehicle and the driver opened fire with a handgun. The agents re...
    In what started as a traffic stop, resulted in a shootout between federal agents and a pair of men known to have illegal assault rifles in Highland Park.Police say a task force of ATF and FBI agents who had previously set up a meet with two men, known to have AK-47s and AR-15s in their Chevrolet Cavalier, began to move in. The traffic stop was made near Oakland and Victor about 7:30 p.m. Friday. The car rammed the federal agents vehicle and the driver opened fire with a handgun. The agents re...
  • Man arrested after trying to wrestle gun from officer in Detroit

    Man arrested after trying to wrestle gun from officer in Detroit

    Friday, August 1 2014 9:32 PM EDT2014-08-02 01:32:44 GMT
    A man was arrested after he went for an officer's gun trying to wrestle it away from Detroit Police, causing the weapon to fire.SkyFOX was over the scene on Manning Street in Detroit, where the incident occurred Friday,The bullet didn't hit anyone and police took a 27-year-old man from Roseville into custody.Police say the home was a known drug den, and when officers drove by the property -- four people ran from the home.The officer and suspect were treated at a hospital for non life threaten...
    A man was arrested after he went for an officer's gun trying to wrestle it away from Detroit Police, causing the weapon to fire.SkyFOX was over the scene on Manning Street in Detroit, where the incident occurred Friday,The bullet didn't hit anyone and police took a 27-year-old man from Roseville into custody.Police say the home was a known drug den, and when officers drove by the property -- four people ran from the home.The officer and suspect were treated at a hospital for non life threaten...
  • New DTE app lets users check their energy use

    New DTE app lets users check their energy use

    Friday, August 1 2014 7:59 PM EDT2014-08-01 23:59:24 GMT
    Joel Miller, a senior strategist with DTE Energy, gave us some insight -- on DTE insight. The new, free smart phone app helps customers see their energy use hour by hour -- or minute by minute."By studying your data and by looking around your home you can discover what things are using energy," Miller said. Then, you make choices -- replace appliances or physically turn off whatever's not needed -- or is wasting energy, and save money on your energy bill in the process."I think for a lot of u...
    Joel Miller, a senior strategist with DTE Energy, gave us some insight -- on DTE insight. The new, free smart phone app helps customers see their energy use hour by hour -- or minute by minute."By studying your data and by looking around your home you can discover what things are using energy," Miller said. Then, you make choices -- replace appliances or physically turn off whatever's not needed -- or is wasting energy, and save money on your energy bill in the process."I think for a lot of u...
  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
Powered by WorldNow

KDFW FOX 4
400 N. Griffin Street
Dallas, Texas 75202

Main Station Directory:
(214) 720-4444
News Fax:
(214) 720-3263 or (214) 720-3333

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices