Chrysler Group LLC posted a 16 percent profit gain in the second quarter as strong U.S. demand for trucks and SUVs -- up 17 percent from the year-earlier level -- boosted revenue. But the No. 3 U.S. light vehicle maker also cut its full year 2013 guidance.
The results stemmed primarily from "higher shipment volumes and positive pricing, partially offset by higher industrial and launch-related costs," the company said.
Chrysler, which is controlled by Italy's Fiat SpA, said its net income rose to $507 million from $436 million a year earlier. Net revenue jumped 7 percent to $18 billion.
It was the eighth-straight profitable quarter for the Auburn Hills, Mich.-based automaker, but Chrysler reduced its full-year net income forecast to between $1.7 billion and $2.2 billion, down from its earlier expectation of $2.2 billion. The revision reflects pressured first-quarter earnings because the company is in the middle of switching to new models with a number of key trucks and SUVs, including its top selling Jeep Grand Cherokee.
Chrysler sold 643,000 vehicles worldwide in the April-through-June period, up 10 percent from a year earlier.
U.S. market share edged up to 11.4 percent from 11.2 percent in the same period last year. In Canada, market share rose to 15.1 percent from 14.5 percent.
Mike Obel works as Senior Editor, Copy Chief. Before that he was Markets Editor, assigning, editing and writing about business, markets, finance and economics. Before coming...