CHICAGO Chrysler Group LLCs earnings rose strongly in the second quarter, which the automaker said was driven primarily by an increase in vehicle shipments.
The Auburn Heights, Mich.-based automaker posted net income of $507 million for the three months ended June 30, up 16.2 percent from $436 million in the same period last year on a 7.1-percent increase in sales to more than $17.99 billion.
"Chrysler Group is poised for a very strong performance in the second half of the year," chairman and chief executive officer Sergio Marchionne said in a statement. "The timing of (our) product launches and capacity increases causes this years performance to be biased to the second half."
Chryslers worldwide vehicle shipments totaled 660,000 in the second quarter, 4.8 percent higher than 630,000 a year earlier, putting year-to-date shipments at 1.2 million vehicles.
Worldwide vehicle sales increased 10.5 percent to 643,000 from 582,000 in the second quarter of last year, driven largely by a 17-percent increase in Chryslers retail sales in the United States. Worldwide sales in the first half totaled 1.2 million vehicles.
Industrywide sales in the United States rose 8 percent to more than 4.2 million vehicles in the first half, while sales in Canada increased 5 percent to 538,000 vehicles.
U.S. average retail transaction prices in the second quarter were up 2.8 percent from a year earlier, but Chrysler said that average incentives were 6.7 percent higher in the same comparison, based on J.D. Power & Associates studies.