Chrysler Reports Loss of $690M in First Quarter
Despite strong sales and a boost in market share, Chrysler reported a loss of $690 million in the first three months of this year. The loss resulted from costs associated with the merge between Chrysler and Fiat. The automaker spent $1.2 billion paying off debts as well as money it owed to a retiree health care trust fund, which held 41.5 percent of the American company. Excluding these costs, Chrysler actually raked in a net income of $486 million, more than the previous year. Net revenue was up 23 percent to $19 billion for the first quarter. Modified operating profit came in at $586 million, which, although up 35 percent, took a small hit thanks to increased vehicle costs, higher depreciation, foreign exchange rates, and costs associated with new product launches. Chrysler now holds a 12.5 percent U.S. market share, up slightly from the same time last year. Worldwide sales are up 10 percent with 621,000 vehicles sold. Sales for the U.S. surged 19 percent in the retail market thanks to the strong performance of Ram pickups and new Jeep Cherokee, the automaker said. For the full year, Chrysler targets revenues of $80 billion and a net income of at least $2.3 billion without extra charges. Chrysler also recently announced its five-year plan, which includes a slew of new products. Source: Chrysler
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