Chrysler reported its preliminary first-quarter 2013 net income of $166 million, compared to $473 million a year ago.
The quarter was negatively affected by the reduced vehicle shipments that resulted from key product launches, namely the 2013 Ram Heavy Duty trucks and the 2014 Jeep Grand Cherokee, as well as preparation for the second-quarter production launch of the all-new 2014 Jeep Cherokee, the company said in a statement.
The company’s revenue for the quarter was $15.4 billion, down 6% from $16.4 billion in the first quarter of 2012.
According to Chrysler, the “anticipated” reduction was primarily attributable to lower shipments in the quarter due to the end of Jeep Liberty production in 2012 in preparation for the all-new 2014 Jeep Cherokee production launch in the second quarter, and the ongoing launches of the new 2014 Jeep Grand Cherokee and 2013 Ram Heavy Duty trucks.
However, Chrysler said “these actions are expected to position the company for a strong performance in the second half of 2013.”
“We remain on track to achieve our business targets, even as the first-quarter results were affected by an aggressive product launch schedule. 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 Group LLC Chairman and CEO Sergio Marchionne said.
Modified operating profit was $435 million, or 2.8% of revenue, in the first quarter, compared to $740 million in the prior year.
The decrease was attributable to reduced shipments, industrial costs related to the new vehicle launches, and a foreign currency exchange loss related to the February 2013 devaluation of the Venezuelan bolivar fuerte relative to the U.S. dollar, partially offset by continued favorable net pricing in North America.
In addition, international shipments declined year-over-year due to continued economic weakness in Europe and import restrictions in Latin America, Chrysler said.
In addition, Chrysler confirmed its guidance for the year, including worldwide shipments of 2.6 million to 2.7 million, modified operating profit of about $3.8 billion and net income of about $2.2 billion.
