Chrysler Group LLC reported preliminary net income of $1.7 billion for 2012, up from $183 million in 2011 and beating guidance provided to analysts. 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.
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% of revenue, up 47% from $2.0 billion in 2011; the change was due to strong sales and more favorable 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; and increased spending on advertising. Modified Operating Profit for the quarter was $711 million, a 40% increase from the same period last year.
Free cash flow increased from $1.9 billion in 2011 to $2.2 billion for 2011.
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. ... 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% from a year earlier.
Modified EBITDA (c) 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.
(a) Adjusted Net Income (Loss) is defined as net income (loss) excluding the impact of infrequent charges, which includes losses on extinguishment of debt. The reconciliation of net income to Adjusted Net Income, Modified Operating Profit (defined below) and Modified EBITDA (defined below) for the three and twelve months ended Dec. 31, 2012, and 2011, is detailed in Table 1 of the attachment to the press release.
(b) Modified Operating Profit (Loss) is computed starting with net income (loss) and then adjusting the amount to (i) add back income tax expense and exclude income tax benefits, (ii) add back net interest expense (excluding interest expense related to financing activities associated with a vehicle lease portfolio the Company refers to as Gold Key Lease), (iii) add back (exclude) all pension, other postretirement benefit obligations (OPEB) and other employee benefit costs (gains) other than service costs, (iv) add back restructuring expense and exclude restructuring income, (v) add back other financial expense, (vi) add back losses and exclude gains due to cumulative change in accounting principles, and (vii) add back certain other costs, charges and expenses, which include the charges factored into the calculation of Adjusted Net Income (Loss). The reconciliation of net income to Adjusted Net Income, Modified Operating Profit and Modified EBITDA (defined below) for the three and twelve months ended Dec. 31, 2012, and 2011, is detailed in
(c) Modified EBITDA is computed starting with net income (loss) adjusted to Modified Operating Profit (Loss) as described above, and then add back depreciation and amortization expense (excluding depreciation and amortization expense for vehicles held for lease). The reconciliation of net income to Adjusted Net Income, Modified Operating Profit and Modified EBITDA for the three and twelve months ended Dec. 31, 2012, and 2011, is detailed in Table 1 of the attachment to the press release.