Chrysler Profits Drop 65 Percent in First Quarter, CEO Says Company Is “On Track”
Compared to the same period last year, Chrysler net income has dropped 65 percent (from $435 million in 2012), while revenue is down $1 billion. The company says financial results were affected by lower vehicle shipments and industrial costs caused by key vehicle launches, such as the 2014 Jeep Grand Cherokee and the 2013 Ram Heavy Duty trucks.
Despite the crash, Fiat & Chrysler Chairman and CEO Sergio Marchionne claims there’s nothing to worry about and says the US manufacturer remains on track and will achieve its business targets for the year.
“We remain on track to achieve our business targets, even as the first-quarter results were affected by an aggressive product launch schedule,” Marchionne. “This quarter underscores the importance of an unwavering commitment to execute flawless vehicle introductions to reach our full potential. While the task ahead this year is daunting, we remain committed to our overall targets, including a minimum shipment increase of 8 percent and a Modified Operating Profit of $3.8 billion."
Chrysler shipped 574,000 vehicles worldwide in the first quarter, about 33,000 less than a year ago.