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Chrysler Q3 net income up 32%

by Bill Cawthon on

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Chrysler Group this morning reported its third-quarter financial results and the news is good.

Worldwide shipments of Chrysler vehicles rose to 700,000. That’s an 18% increase from the 593,000 shipped in the July-August period in 2013. U.S. Q3 market share was 12.3% (12.5% at the end of October), up 110 basis points from from 11.2% a year ago; market share in Canada was 14.9% for the quarter, up from 14.3% in 2013.

Worldwide sales also increased by 18%, to 711,000.

Third-quarter fleet sales stood at 18%, unchanged from 2013 but down from 24% in 2012. Q3 fleet sales.

Inventory stood at 71-day supply compared to a 62-day supply in Q3 2013. Dealer inventory totaled 500,000 units, the lowest level this year, but up from 387,000 vehicles last year. Q3 2014 dealer inventory was the highest in the last three years.

Net income was $611 million in Q3, up 32% from a last year, on net revenue of $20.7 billion, up 18% from Q3 2013. For the January-September period, revenue grew more than $9 billion, to $60.1 billion, from $50.9 billion in the first nine months of 2013.

The increases in third-quarter shipments and revenues were driven, in large part, by the Jeep Cherokee and Chrysler 200. Worldwide Jeep sales soared by 80,000 units, to 268,000, and Ram sales grew 32,000 to 153,000 trucks. Chrysler brand sales grew by 8,000 units, to 93,000. Dodge sales fell by 12,000 to 183,000. Dodge is still the second-largest Chrysler Group brand in worldwide sales. Fiat sales fell by 2,000 vehicles in the primary Chrysler Group markets.

Sales improved in all markets except Mexico, where they were off by 1,000 units. Sales were up 87,000 in the U.S., 10,000 in Canada and 12,000 in worldwide deliveries.

Modified Operating Profit was $946 million for the quarter; 4.6% of net revenue. That’s up 10% from $862 million, or 4.9% in net revenue from last year. The percentage dropped as gains in net pricing were offset by higher industrial costs and the costs of incentives, recalls and product launches.

Free Cash Flow went from red to black: last year, it was minus $343 million; this year it was a positive $412 million. Cash on September 30, 2014, was $13.6 billion.

Worldwide vehicle sales for the quarter were 711,000, up 18 percent from 603,000 a year ago

Chrysler Group confirmed FCA’s full-year 2014 guidance calling for worldwide shipments of 2.9 million vehicles (2.1 million shipped through Q3), net revenues exceeding $80 billion and a modified operating profit of $3.7-$4.o billion.

Note: Chrysler Group financials are compiled under different accounting rules from those used by Fiat Chrysler Automobiles N.V. That’s why they are reported separately.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for just-auto.com, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

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