Chrysler first-quarter profits down

Chrysler Group said net income fell to $166 million in the first quarter as costs of two large product launches crimped the automaker's seventh consecutive quarterly profit.

Profit fell 65 percent from the $473 million posted during the same quarter of 2012, Chrysler said in a statement today.

First-quarter revenues dropped 6 percent to $15.4 billion. Global shipments declined to 574,000 from 607,000 a year earlier, mainly because of the end of Jeep Liberty production.

Chrysler said its profits were hurt by costs tied to the launches of the re-engineered Ram pickup line and the Jeep Grand Cherokee.

The company said its net income for the year would be about $2.2 billion, in line with earlier forecasts. Chrysler also kept its estimate for about 2.65 million vehicle shipments this year.

Chrysler said it had $11.9 billion in cash on hand, up $600 million from the $11.3 billion it reported a year ago.

“We remain on track to achieve our business targets, even as the first-quarter results were affected by an aggressive product launch schedule,” CEO Sergio Marchionne said in the statement. “This quarter underscores the importance of an unwavering commitment to execute flawless vehicle introductions to reach our full potential.”

The company's gross industrial debt fell to $12.5 billion, down slightly from the $12.6 billion recorded during the same period of 2012.

(Chrysler profit tumbles on costs of product launches originally appeared on Automotive News, sub. req.)

By Larry P. Vellequette- Automotive News