Chrysler Q3 profits surge to $611M but per-unit profits trouble
 

Filed under: Chrysler, Earnings/Financials

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Chrysler Group has announced its third-quarter financial results a little later than its crosstown rivals at General Motors and Ford, but the company has reason to celebrate thanks to strong numbers across the board.

The biggest attention-grabber from the automaker is that its net income was up 32 percent in the third quarter to $611 million, compared to $464 million over the same period last year. Modified operating profit was also strong at $946 million - a 10 percent gain. Furthermore, net revenue grew as well to $20.7 billion - 18 percent higher Q3 2013.

Growing sales pushed the strong financials. Chrysler Group sold about 711,000 vehicles worldwide for the quarter, up 18 percent from a year ago. Things looked especially good in the US, where its market share grew to 12.3 percent, versus 11.2 percent in Q3 2013.

While those figures all look rosy, some analysts aren't completely convinced. According to The Detroit Free Press, there is concern that Chrysler Group only has a 4.6-percent profit as a percentage of its sales here, versus 9.5 percent for GM and 7.1 percent for Ford. The Auburn Hills automaker maintains that the discrepancy exists because it sells fewer vehicles than its competitors and therefore spends comparatively more per vehicle on marketing. While Chrysler Group and GM both showed strong financial results for the quarter, Ford posted a 34 percent dip in net income.

Scroll down to read full press release from Chrysler about its Q3 results.Continue reading Chrysler Q3 profits surge to $611M but per-unit profits trouble

Chrysler Q3 profits surge to $611M but per-unit profits trouble originally appeared on Autoblog on Thu, 06 Nov 2014 14:17:00 EST. Please see our terms for use of feeds.



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