Chrysler Group LLC today reported preliminary financial results for the second quarter and first half of 2014, including net income of $619 million for the quarter, up 22 percent from $507 million in the year-ago quarter.
Adjusted Net Income(a) for the first half of 2014 was $1.1 billion, up from $696 million in the first half of 2013. The Adjusted Net Income of $1.1 billion excludes the unfavorable effects of infrequent items recorded in the first quarter of 2014, related to the Company’s prepayment of a note held by the UAW Retiree Medical Benefits Trust (VEBA Trust Note) and a charge for commitments associated with the January memorandum of understanding signed with the UAW. Including the infrequent items, net loss for the first half of the year was $71 million.
Net revenue for the second quarter was $20.5 billion, up 14 percent from $18 billion a year ago. Net revenue for the first half of the year was $39.4 billion, compared with $33.4 billion a year ago. Increased shipments of vehicles such as the Ram pickup and the all-new Jeep Cherokee drove the year-over-year improvements.
Modified Operating Profit was $985 million in the second quarter, or 4.8 percent of net revenue, up from $808 million reported in the prior-year period. The 22 percent increase was mainly the result of higher shipment volumes, improved mix, and pricing to recover vehicle content enhancements, partially offset by increased incentive spending on legacy products, industrial and advertising costs and adverse foreign exchange effects. Modified Operating Profit for the first half of 2014 was $1.6 billion, or 4 percent of net revenue, up from $1.2 billion in the first half of 2013.
