Chrysler's profts fall 65%

Chrysler, the third biggest car manufacturer in the US posted net income of US$166m for the first three months of the year, down from US$473m a year ago.

Net revenue for the company, controlled by Italy's Fiat, fell 6.0%, to US$15.4bn.

Chrysler noted that the poor performance had been expected and was mainly due to the end of production of the Jeep Liberty last year in preparation for the launch the 2014 Jeep Cherokee in the second quarter of this year.

Results in the January to March period were also negatively affected by other product launches, as well as "continued economic weakness in Europe and import restrictions in Latin America," the company said.

According to Chrysler, worldwide vehicle shipments fell 5.0% to 574,000 units, due mainly to the end of the Liberty's production.

However, while shipments were down, sales worldwide were up 8.0% from a year ago, to 563,000 units, led by a 12% jump in Chrysler's sales in the US.

"We remain on track to achieve our business targets, although the first-quarter results were affected by an aggressive product launch schedule," Sergio Marchionne, Chrysler's chairman and chief executive, said in the statement.

Chrysler confirmed its full-year earnings target of US$2.2bn dollars, on revenue of between US$72bn and US$75bn.

Chrysler, majority owned by Italy's Fiat and an Italian trade union controlling a large minority share through its pension fund, has sustained a strong recovery from its near-collapse in 2008 when it had to be rescued from ruin by the US government.

Source: AFP via I-Net Bridge