Automaker Chrysler Group Llc (FIATY.PK), Monday reported a swing to profit in the second quarter, helped mostly by robust sales in the U.S. and as well on the absence of debt charges recorded last year. Moving forward, Chrysler reaffirmed its outlook for the full year.
Chrysler, which is majority owned by Italy's Fiat S.p.A, said revenues for the second quarter rose 23 percent year-over-year.
Worldwide vehicle sales for the quarter jumped 20 percent from last year to 582,000 units. This is mainly attributed to U.S. sales that grew 24 percent on impressive retail demand.
Chrysler's U.S. market share increased to 11.2 percent from 10.6 percent a year ago, while its market share in Canada was 14.5 percent.
"Our results reflect a tireless pursuit by the people of Chrysler Group to deliver the very best quality and value across our brands," said Chrysler CEO Sergio Marchionne.
Chrysler reported second quarter net income of $436 million, compared to a net loss of $370 million a year ago.
Results for the prior year included debt-related charges of $551 million.
Revenues for the quarter totaled $16.8 billion, up from $13.7 billion in the prior year quarter.
For the full year 2012, Chrysler continues to expect net income of $1.5 billion on revenues of $65 billion. The car maker continues to expect worldwide shipments of 2.3 million to 2.4 million units for the year.
Chrysler is the smallest of the "Big Three" U.S. automakers after Ford Motor Co. (F) and General Motors Co. (GM). Chrysler has been reporting strong monthly sales in the U.S. on demand for core brands such as Chrysler, Jeep, Dodge, Ram, among others. For June, it recorded a 20 percent rise in U.S. sales.
Chrysler's bullish quarter is expected to somewhat act as a bulwark for Fiat Group that faces weak sales in Europe as the region reels under increased unemployment and debt levels.
Fiat, which took control of Chrysler under a 2009 bailout deal, recently upped its stake in the U.S. car maker to 61.8 percent. It began consolidating Chrysler's results from June 2011. Fiat is set to report its quarterly earnings on July 31.
Among others in the industry, Ford Motor Co. (F) recently reported a 57 percent plunge in quarterly earnings, and disclosed a loss of $404 million in its European operations. It now expects European losses in 2012 to be more than $1 billion.
FIATY.PK closed Monday at $5.13, up 2.60%.
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