Chrysler Group Gearing Up For IPO
Chrysler Group LLC reported on Wednesday that third quarter earnings rose 22 percent on the back of high demand for pickup trucks and SUVs.
The company recently filed plans to launch an IPO, and has felt a rise due to low interest rates and steady job growth. This has given consumers the confidence needed to begin purchasing new vehicles once again.
9 Positive Quarters
This earnings report marks nine consecutive quarters in the black for the Auburn Hills, Michigan based company. The positive results of Chrysler have helped bolster Fiat SpA, which is a majority owner in the U.S. based automaker.
Chrysler Group LLC reported a net income of $464 million this past quarter, which is more than $80 million more than its $381 million reported in the same quarter last year. The company’s modified operating profit totaled $862 million, which was more than a $150 million increase from the $706 million reported last year. Revenue was boosted by 13 percent to a healthy $17.57 billion for the quarter.
More than three and a half years of healthy sales increases for Chrysler Group LLC has positioned it well for the launch of its upcoming IPO. The Jeep Grand Cherokee and Ram 1500 offered by Jeep and Dodge respectively, are two of Chrysler’s vehicles that have noted positive momentum going into the fourth quarter.
Automobile Sales Up Worldwide
Chrysler Group LLC has been part of the worldwide rise in automobile sales over the last quarter. Vehicle sales are up 8 percent worldwide, mainly boosted by a 16 percent rise in the U.S. alone. The total number of new vehicles sold last quarter was 603,000. Vehicle shipments also climbed worldwide by 6 percent, totaling 593,000.
GM Reports Massive Loss Due To Share Repurchase
In other automotive news, GM also reported earnings this week. The maker of the Chevrolet, Pontiac, and Buick brands reported a 53 percent drop in profits, largely due to the repurchase of 120 million shares of its preferred stock.
Become An Exclusive Member Of Wall Street Insanity