Chrysler profits soar to 13-year high

The stock market rose today as Chrysler Corp. reported its best quarterly profit in 13 years.

The company earned $473 million in the first quarter, as its U.S. sales rose 39 percent from January through March. The firm’s sales were led by Ram pickups, Jeep Grand Cherokee SUVs and Chrysler 200 sedans.
Chrylser’s quarterly profit more than quadrupled from the a year earlier, and it was the best performance since the third quarter of 1998, when Chrysler earned $682 million during the pickup truck and SUV boom.
“I have no bad news to tell you.” Chrysler CEO Sergio Marchionne said today, adding that trends for the rest of year looked positive.
Chrysler’s revenue for the quarter rose 25 percent to $16.4 billion.
The company is optimistic about this year, repeating a forecast that it would make $1.5 billion in 2012.
Total car and truck sales in the United States are running at an annual rate of 14 million so far this year, up from last year’s 12.8 million. The average age of vehicles on U.S. roads is nearing 11 years, and pent-up demand is helping sales.
With the news, the Dow Jones Industrial Average climbed by about 60 points this morning.

 

Sign up for BizTimes Daily Alerts

Stay up-to-date on the people, companies and issues that impact business in Milwaukee and Southeast Wisconsin

No posts to display