Chrysler Earnings Q1 2012: Automaker Reports Best Quarter Since Fiat Merger

* Chrysler maintains 2012 guidance of about $65 bln revenue

* To begin sales of key product Dodge Dart in Q2

* Fiat SpA to report earnings later Thursday

DETROIT, April 26 (Reuters) - U.S. automaker Chrysler Group LLC showed its best quarterly profit since its 2009 bankruptcy on strong sales in North America, and confirmed guidance that it will show a profit of about $1.5 billion in 2012.

Chrysler, managed by its majority owner Fiat SpA, showed first quarter net income of $473 million, up from $116 million a year ago.

Chrysler's auto sales increased 33 percent to 523,000 vehicles in the quarter, led by its home U.S. market where it gained market share on a first-quarter sales jump of 36 percent versus as the industry-wide showed a gain of 13 percent.

"Another positive quarter - built on sales gains that have surpassed the industry average - is affirmation that the Chrysler team is maintaining its focus," said Sergio Marchionne, chief executive of both Chrysler and Italy's Fiat.

Marchionne said the company remains on target with its five-year plan unveiled in November 2009.

Chrysler said its quarterly revenue of $16.35 billion was an improvement over $13.12 billion a year earlier.

The No. 3 U.S. automaker also reported modified operating profit of $740 million, up from $477 million a year ago.

Chrysler confirmed 2012 guidance made in January of achieving net income of about $1.5 billion, eight times the 2011 net profit of $183 million. Last year's profit was the first annual profit for Chrysler since 2005 when it was owned by Germany's Daimler AG.

Italy's Fiat SpA took control of the company after Chrysler's 2009 bankruptcy, which was sponsored by the U.S. and Canadian governments.

Later on Thursday, Marchionne will address the state of the larger Fiat, which also reports results.

Fiat's stake in Chrysler is 58.5 percent. The remaining 41.5 percent is owned by the retiree healthcare trust affiliated with the United Auto Workers union, which represents the company's U.S. hourly workers.

Comments

[satyrday]

09:44 PM on 04/26/2012

If the repubs had their way, we'd all have to buy Korean cars now (secretly made in North Korea, because their labor is dirt cheap).

[Ricardo01]

08:58 PM on 04/26/2012

Whoever publicly blasted the idea of our government investing in the auto industry to get it back running again will have a hard time proving they are the smartest economic mind in November's election. This is single handedly the biggest economic success story since Bill Clinton left office.

[demisfine]

06:58 PM on 04/26/2012

The Cons were willing to let the industry die to sink this president AND the unions in one move.
The fact that things are getting better for both steams the Cons to no end.

[demisfine]

06:54 PM on 04/26/2012

Mitt Romney - the Businessman Candidate, would have allowed them to go bankrupt.
Silly Mitt.

[jettymichael]

04:22 PM on 04/26/2012

BMW is the best automarker in profit margin

[Kenz300]

04:08 PM on 04/26/2012

Every other auto maker is coming out with an electric car this year or next.

What is Chryslers answer to high fuel prices?

[Kenz300]

04:05 PM on 04/26/2012

Chrysler needs to produce some additional fuel efficient vehicles.

As the price of oil continues to rise more people will be looking to save money by buying a vehicle with higher fuel efficiency.

In 2008 Chrysler was caught in a down draft with few high mileage vehicles to sell and lost customers and money. They need to learn from that mistake and produce some fuel efficient vehicles that can compete with Hyundai, Kia, Nissan, Honda and Toyota.

40+ mpg is better than 9 mpg.

[JScott]

06:45 PM on 04/26/2012

Dodge Dart is upcoming.

Will be drawing upon some of Fiat's more successful platforms.

[George Picard]

07:29 PM on 04/26/2012

Al Bundy will be lining up to buy it, lol.

Really the Dart is coming back?

[jwoww]

12:20 PM on 04/26/2012

infused with massive amounts of cash by the fed govt on the backs of the taxpayers, allowed to go into illegal bankrupcy to shaft the secured bondholders, all past debt wiped clean and a significant protion of the taxpayer bailout written off

any business should be able to turn a profit with that. give it 5 years and they'll be crawling back for more

[jerzyboy]

03:10 PM on 04/26/2012

It was alright when Regan did though, right.

[jwoww]

03:32 PM on 04/26/2012

no it was not and Reagan had an open checkbook policy which if you turn back the clock started the decline. the only difference is that reagans policies led to significant prosperity and economic growth in a very short period of time but 30 years later we are still paying the debt we took on as we will be 5 years from now when GM and Chrysler run out of other peoples money.

[jerzyboy]

03:11 PM on 04/26/2012

I meant Reagan, sorry

[rdimitrir]

11:15 AM on 04/26/2012

Obama auto bailout was simply brilliant - millions of jobs saved or created, GM and Chrysler are two most succesful companies in the world now, their products are more popular than ever, and all government loans paid back with interest.

[daultman463]

04:34 PM on 04/26/2012

LOL LOL!! Wow my friend since when is getting 50 billion and paying back 1 part of that of 7 billion paying of all goverment loans my friend??

[demisfine]

06:56 PM on 04/26/2012

Fanned.
He showed that faith in the people of this nation, and in the American Auto Industry would not be wasted.

[emmanuel kalu]

10:44 AM on 04/26/2012

way to go auto industry, just remember who was fighting for you and who wanted to sell you bit by bit to the vulture. Now if you can bring more jobs back, help detriot get back on it feets. while you are at it, make sure you continue to push for electric cars and natural gas cars to reduce our need for oil.

[DSciarrino]

10:30 AM on 04/26/2012

Interesting that the great German juggernaut couldn't turn Chrysler around, but Fiat, of all companies, can? Who'd a thunk it. . .

[emmanuel kalu]

10:54 AM on 04/26/2012

the previous problem with our auto industry is that, they were making cars and trying to sell it to the people. instead of making the car the people wanted. they also had two groups, labor and corporate fighting against each other. now they are working together to produce cars that people want and need.

[flashpants]

11:46 PM on 04/26/2012

Dsciarrino, I was thinking the same thing. I found it curious that it took Mercedes to put Chrysler on the right path by using Chrysler's own technology! It's like they [Chrysler] had the answers right under their noses but didn't see them. With Mercede's guidance, Chrysler brought back rear wheel drive and hemi engines, stuff they knew how to do all along. Good for them.

[tacevad]

10:24 AM on 04/26/2012

oh noes! you mean LOANING money to Chrysler worked? It saved American jobs? and they were the kind of jobs that taxes get paid on instead of "capital Gains"? whoda thunk it...oh that's right, President Barack Obama....thank you sir for your foresight and ability to look past the fast buck that could have been made by a few "venture capitalists" and saving American jobs not only at Chrysler but also millions of others in the supply chain,not to mention the pensions of the Chrysler workers who will now be able to continue to buy those pesky consumer goods other Americans will make in the future.

[intolleft]

09:24 AM on 04/26/2012

Excellent! Can the taxpayer get its money they owe us now?

[johnnygoodwud]

09:36 AM on 04/26/2012

they have already paid back the loan. ever watch 60 minutes? they had a big story about repaying the loan early. try keeping up.

[intolleft]

09:49 AM on 04/26/2012

And you bought it huh? Shame.

http://content.usatoday.com/communities/driveon/post/2011/11/auto-bailout-losses-expected-to-rise-by-9-billion/1#.T5lSFlLYGE9

If you bear reading it, ask yourself if the taxpayer will EVER get their money from Obama's "success".

[miinfluence]

09:52 AM on 04/26/2012

The money they repaid was with borrowed money. Keep up much.
http://washingtonexaminer.com/politics/beltway-confidential/2011/05/truth-behind-chrysler’s-fake-auto-bailout-pay-back/145552

[daveswrath0704]

10:39 AM on 04/26/2012

they pay it back a year ago 6 years a head and the govt made a profit of 1 billon off it not bad to save us job

[intolleft]

10:49 AM on 04/26/2012

Hook....line....sinker:

http://content.usatoday.com/communities/driveon/post/2011/11/auto-bailout-losses-expected-to-rise-by-9-billion/1#.T5lSFlLYGE9

[Youcantstandthetruth]

09:21 AM on 04/26/2012

A bit off topic but many years ago we use to say that FIAT stood for:

Fix It Again Tony

[DSciarrino]

10:31 AM on 04/26/2012

Failed Italian Automotive Technology. . .

[emmanuel kalu]

10:49 AM on 04/26/2012

have you driven on of those cars. american car have come a long way. and if you go to europe, most of the car that get good gas mileage are american cars.

[she343]

03:03 PM on 04/26/2012

FORD-- fix or repair daily............your point?

[SimianNation]

09:16 AM on 04/26/2012

"That, Sir, Is The Sound Of Money Being Mad"

No, THAT Sir, is the sound of poor editing.

[barkingcat]

10:13 AM on 04/26/2012

Thank you -- I saw that, as well.

Angry, that money is.

[SimianNation]

10:20 AM on 04/26/2012

A $20 bill found on the street...now that is real mad money.