Chrysler Net Income Increases to $436 Million & Ford Earns Net Income of $1 Billion in Second Quarter
AUBURN HILLS and DEARBORN, MI – Chrysler and Ford reported their 2012 second-quarter earnings today and late last week, respectively. Chrysler saw net income of $436 million, a 141% improvement over its adjusted net income of $181 million a year ago, and Ford earned net income of $1 billion.
AUBURN HILLS and DEARBORN, MI – Chrysler and Ford reported their 2012 second-quarter earnings today and late last week, respectively. Chrysler saw net income of $436 million, a 141% improvement over its adjusted net income of $181 million a year ago, and Ford earned net income of $1 billion.
Chrysler reported that its earnings are an $806 million improvement over the $370 million net loss during the same quarter last year, which included a $551 million charge related to repaying government loans. Excluding that charge, net income increased $255 million, or 141 percent period over period. The automaker also said it increased its U.S. overall market share to 11.2% for the second quarter, which is up from a figure of 10.6% from a year ago, driven by a 24% overall increase in U.S. sales.
Chrysler added that its worldwide vehicle shipments for Q2 were 630,000, which includes 23,000 of contract manufactured vehicles. This number represents a 22% increase over Q2 2011, when Chrysler shipped 514,000 vehicles. The automaker said that in the U.S., sales of the Jeep Wrangler in June hit an all-time record, and sales of the Chrysler 300 saw a 151% increase in the second quarter. Chrysler also noted that its Dodge Dart began appearing in showrooms, and that it has received accolades for its interior, the technologies used in the vehicle, and for overall value (citing news and honors from Kelley Blue Book, Consumer Automotive Guide, and Ward’s Auto).
Ford reported a pre-tax operating profit of $1.8 billion and net income of $1 billion, driven by Ford’s sales in North America and Ford Credit’s performance. This is the automaker's 12th consecutive quarterly pre-tax operating profit, according to Ford. That said, this is a decrease of $1.4 billion from Q2 of 2011.
The company noted it made payments of $800 million to its worldwide funded pension plans, of which $500 million included discretionary payments to U.S. funded plans. Ford also noted that its second quarter net income for 2012 was affected by lower operating results and the impact of higher tax expenses when compared to a year ago (due to the release of the tax valution allowance in the fourth quarter of 2011).
Going forward, the automaker said customer response to the launch of its all-new Escape and Fusion are contributing to the company’s earnings outlook, with Ford expecting significantly higher pre-tax operating profit and margin when compared with 2011. Ford’s President and CEO Alan Mulally reiterated the automaker’s commitment to its “One Ford” plan, which involves restricting to operate profitably and meet current demand; develop products customers want more quickly; finance this plan and improve the company’s balance sheet; and leverage Ford’s global assets as part of the company’s focus on effective teamwork.
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