Chrysler Group Reports Massive 2012 Income

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AUBURN HILLS — Chrysler Group today reported preliminary net income of $1.7 billion for the full year 2012, up from net income of $183 million a year ago, exceeding the guidance provided earlier in the year. Full-year 2011 Adjusted Net Income was $734 million, after adjusting for the $551 million loss on extinguishment of debt recognized in the second quarter of 2011.

“While we are pleased to have achieved strong financial results in 2012, the enterprise we are crafting is not complete,” Chrysler Group chairman and CEO Sergio Marchionne said. “The goals we’ve set for the year ahead reflect a common desire by everyone from leadership to the shop floor to succeed and sustain the power of the house we are building. Our aim is meaningful, but it is not complicated, and only a preoccupation with quality can achieve it. We pause for a moment to enjoy our accomplishments, but we will not stop. Our continued achievement relies upon maintaining a humble spirit and an intense focus on the integrity of our work. And so we press on.”

Here are some more highlights of Chrysler’s 2012 full-year income:

  • Net revenue for the year was $65.8 billion, up 20 percent from $55.0 billion a year ago; fourth-quarter revenue was up 13 percent to $17.2 billion
  • Modified Operating Profit(b) improved to $2.9 billion for the year, up 47 percent from the prior year; fourth-quarter Modified Operating Profit was up 40 percent to $711 million
  • Cash(d) at year’s end was $11.6 billion compared with $9.6 billion a year ago and $11.9 billion at Sept. 30, 2012; Free Cash Flow(e) for the year was $2.2 billion compared with $1.9 billion a year ago
  • Net Industrial Debt(f) was $1.0 billion at Dec. 31, 2012, an improvement of $1.9 billion from a year ago
  • Worldwide vehicle shipments were 2.4 million for the year, up 20 percent from 2.0 million a year ago; fourth-quarter shipments were 613,000
  • Worldwide vehicle sales for the full year 2012 totaled 2.2 million, up 18 percent from a year ago; fourth-quarter sales were 533,000
  • U.S. market share was 11.2 percent for the full year, up from 10.5 percent market share in 2011; market share in Canada was 14.2 percent for the year
  • The new 2013 Ram 1500 has been named “2013 North American Truck/Utility of the Year,” 2013 Motor Trend’s “Truck of the Year,” “Truck of Texas,”  AOL Autos “Truck Of The Year,” and Detroit Free Press“Truck of the Year”

The targets for 2013 are as follows:

  • Worldwide vehicle shipments of ~2.6-2.7 million
  • Net revenue of ~$72-75 billion
  • Modified Operating Profit of ~$3.8 billion
  • Net income of ~$2.2 billion
  • Free Cash Flow of ≥$1 billion

Significant Corporate Events in the Fourth Quarter of 2012 and subsequent:

Nov. 14: The Human Rights Campaign named Chrysler Group one of 252 leading employers to achieve a perfect score on the group’s 2013 Corporate Equality Index

Nov. 15: Chrysler Group announced that it will invest nearly $240 million to increase engine capacity and will add approximately 1,250 new jobs at three of its Michigan plants: Mack 1 Engine Plant, Trenton North Engine Plant and Warren Truck Assembly Plant

Nov. 29: Chrysler Group said it would pay the second half of the $3,500 ratification bonus on Dec. 21, 2012, to its eligible UAW-represented employees, waiving the financial threshold outlined in the collective bargaining agreement that otherwise would not have been paid until the first quarter of 2013 at the earliest

Dec. 17: The Michigan Hispanic Chamber of Commerce has named Chrysler Group “Corporation of the Year” for 2012, citing the Company’s outstanding commitment to supplier diversity and, particularly, the inclusion of Hispanic-owned businesses in its supply base

Jan. 9, 2013: Chrysler Group announced that it had received a demand from the UAW Retiree Medical Benefits Trust (VEBA) pursuant to the Shareholder Agreement, seeking registration of approximately 16.6 percent of Chrysler Group’s outstanding equity interests currently owned by VEBA

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