Executives in Auburn Hills had cause for celebration this week, as Chrysler Group announced another quarter of exceptionally strong financial results. In the second quarter of 2012, Chrysler reported net income of $436 million on net revenue of $16.8 billion.
While those figures are both slightly lower than Chrysler’s first-quarter results, the net revenue represents a 23-percent increase over the second quarter of 2011.Chrysler primarily credits its improved financial standing with the fact that its sales and market shares have grown. The company sold 582,000 vehicles globally this quarter, up 20 percent compared to the second quarter of 2011. Growth within the U.S. market was even stronger: through the end of June 2012, Chrysler Group has sold 834,068 cars here, up 30 percent compared to the first six months of 2011.
The company also asserts that the launch of the 2013 Dodge Dart sedan will help further bolster market share. Sales figures due to be released tomorrow will reveal whether that is true; Dodge sold only 202 copies of the Dart in its first partial month on sale, June.
Moreover, Chrysler managed to reduce its debt load earlier this year by refinancing its obligations to the American and Canadian governments. In other words, Chrysler is no longer paying as much for the bailout funds it received almost three years ago. The company reported net industrial debt of $432 million this quarter, down from $1.34 billion at the end of the first quarter.
Looking forward, Chrysler expects to sell between 2.3 and 2.4 million vehicles globally this year. Asa a result, Chrysler expects to return a net income of $1.5 billion on net revenue of $65 billion.