Chrysler's Net Income Rises 22%
Chrysler, the only American automaker not to currently trade publicly, took a back seat to Ford and General Motors in the third quarter. Detroit's third-largest automaker saw its worldwide vehicle sales rise 8% to 603,000 in this period, driven primarily by a 16% increase in U.S. retail sales, the company reported yesterday. Net revenue was $17.6 billion, a 13.5% improvement from a year ago yet still far behind Ford and General Motors at $36 billion and $39 billion, respectively. Chrysler's net income for the third quarter was $464 million, a 22% increase from last year.
On the downside, its U.S. market share slightly dropped, down to 11.2% from 11.3%, and its free cash flow was negative $343 million. Chrysler's net industrial debt was $888 million, up from $656 million in the previous quarter.
After the recession that forced Chrysler and General Motors into bankruptcy protection, while Ford escaped with its own massive private loan, the Big Three automakers respectively have posted nine, 15, and 17 consecutive quarters of profitability.
"Chrysler Group's ninth consecutive quarter of positive net income highlights our commitment to producing award-winning vehicles for consumers, such as the Jeep Grand Cherokee and the Ram 1500," Chrysler Group Chairman and CEO Sergio Marchionne said in a press release. "We also are pleased to introduce the already award-winning Jeep Cherokee to the lineup, as it launches into the largest SUV segment in the United States."
The article Chrysler's Net Income Rises 22% originally appeared on Fool.com.Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.