DETROIT — Chrysler, the smallest of the American automakers, on Wednesday reported a big increase in 2012 earnings that helped its Italian parent company, Fiat, become profitable for the year as well.
Chrysler said that its net income soared to $1.67 billion last year — about nine times as much as the $183 million it earned in 2011.
The exponential increase underscored the company’s comeback from its government bailout and bankruptcy in 2009, when it was taken over by Fiat.
In the fourth quarter alone, Chrysler said it earned $378 million, a 68 percent increase from $225 million in the same period in 2011. Revenue in the quarter was $17.2 billion, a 13 percent gain from $15.1 billion a year earlier.
“Chrysler concluded a very successful 2012 with a robust fourth-quarter performance,” said Jesse Toprak, an analyst with the auto research site TrueCar.com. “The company was the only domestic automaker to gain market share last year.”
Chrysler also benefited from having little exposure to the deepening economic crisis in Europe, where vehicle sales have fallen to the lowest levels in nearly 20 years.
The European problems, however, took a heavy toll on results at Fiat, which also reported earnings on Wednesday.
Without Chrysler, Fiat said it would have lost 1.04 billion euros ($1.4 billion) in 2012. But instead, Chrysler’s results helped Fiat earn a profit of 1.41 billion euros for the year, about a 15 percent decrease from the 1.65 billion euros the Italian automaker earned in 2011, which included Chrysler after the middle of the year.
In the fourth quarter, Fiat reported a profit of 388 million euros. Without Chrysler’s contributions, it would have lost 241 million euros.
Analysts said Chrysler’s strong performance in the surging United States market should compensate for Fiat’s troubles for some time to come.
“With Europe in the mess it is in, it’s going to be a tough slog for Fiat,” said Mike Wall, an analyst with the market-research firm IHS Automotive. “They need all the help Chrysler can give them.”
Fiat currently owns a 58.5 percent stake in Chrysler, and has been consolidating the American company’s performance into its own results since June 2011.
Chrysler has been growing steadily as it introduced new vehicles and revamped older models. Its revenue for 2012 was $65.8 billion, a 19.6 percent improvement from $55 billion the previous year.
For the year, its global vehicle sales increased to 2.2 million, an 18 percent increase from 1.9 million the previous year, and its market share in the United States improved to 11.2 percent, up from 10.5 percent a year earlier.
Sergio Marchionne, who serves as chief executive of both Chrysler and Fiat, said the turnaround at Chrysler was gaining momentum thanks to solid sales of core products like the Ram pickup and the Jeep Grand Cherokee S.U.V.
“We pause for a moment to enjoy our accomplishments,” Mr. Marchionne said, “but we will not stop.”
Mr. Marchionne forecast continued improvement for Chrysler this year. He said the company expected to earn net income of $2.2 billion in 2013, on revenue of $72 billion or higher.
He also outlined plans on Wednesday to bring more Fiat and Alfa Romeo models to the United States, even as Chrysler delays the introduction of some of its own new products.
The Alfa Romeo brand, which left the American market almost 20 years ago, will return with a sports car later this year. It is the first of several new Alfas destined for the United States over the next three years.
Fiat will also add several new products for the American market, building on its first offering, the tiny Fiat 500 microcar.
Mr. Marchionne said that a few Chrysler car models, mostly derived from Fiat platforms, would be delayed as a result.
“The product plan is a living document,” he said, referring to changes in Chrysler’s vehicle timetable. “And we continue to rework that document.”
Mr. Marchionne also said plans were fluid regarding an initial public offering of Chrysler stock. A health care trust for retired members of the United Automobile Workers union is seeking an I.P.O. to cash out its 41.5 percent ownership stake in Chrysler.
Chrysler’s large profits in 2012 will directly benefit its current hourly work force. About 31,000 union members will receive average profit-sharing checks of $2,250, the company said.
Article source: http://www.nytimes.com/2013/01/31/business/chrysler-earnings-soar.html?partner=rss&emc=rss
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