Chrysler reports $690m 1Q loss

Written By Unknown on Senin, 12 Mei 2014 | 22.24

CHRYSLER Group has posted big first quarter sales gains thanks to new Jeep Cherokee and Ram utility models.

However, its results have been overshadowed by charges related to its merger with Italian automaker Fiat SpA.

Chrysler lost $US690 million ($A746.55 million) in the January-March period, the company announced on Monday. Without one-time charges related to the merger, its net income more than doubled to $US486 million.

In January, Fiat paid $US3.65 billion to a union-run health care trust to acquire Chrysler's remaining shares. As part of the deal, Chrysler agreed to pay $US700 million to upgrade its factories.

Aurburn Hills, Michigan-based Chrysler took a $US672 million charge in the first quarter to meet those commitments. It also booked a $US540 million non-cash loss on extinguishment of debt related to the merger.

Revenue rose 23 per cent to $US19 billion.

Worldwide vehicle sales jumped 10 per cent to 621,000.

In the US, Chrysler's biggest market, the company's sales rose 11 per cent, far outpacing the one per cent average gain for the industry.

Chrysler saw strong sales of the new Jeep Cherokee SUV, which went on sale at the end of last year. Ram truck sales were also up 25 per cent in the US


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