By RTT News,
May 12, 2014, 10:04:00 AM EDT
(RTTNews.com) - Chrysler Group reported a first-quarter 2014 net loss of $690 million, compared to net income of $166 million in the prior year quarter.
The latest-quarter result included a $504 million non-cash loss on extinguishment of debt related to the prepayment of the VEBA Trust Note and a $672 million charge ($499 million non-cash in 2014) related to the January 2014 memorandum of understanding signed with the UAW.
Adjusted net income for the first quarter was $486 million, up from $166 million a year ago.
Modified Operating Profit was $586 million in the first quarter, up from $435 million reported in the prior-year period. The 35 percent increase was primarily due to higher shipments and improved mix, partially offset by increased vehicle costs due to vehicle content enhancements; higher advertising costs; higher depreciation and amortization costs due to new product launches; and foreign exchange effects, including the devaluation of the Venezuelan bolivar, which accounted for a charge of $129 million in the first quarter of 2014 compared with a devaluation charge of $78 million in the first quarter of 2013.
Net revenue was $19 billion for the quarter, up 23 percent from $15.4 billion in the prior-year period, primarily driven by an increase in vehicle shipments, including Ram pickup trucks and the all-new Jeep Cherokee.
Worldwide vehicle sales were 621,000 for the first quarter, up 10 percent from 563,000 sold in the first quarter of 2013, driven largely by a 19 percent increase in the Company's U.S. retail sales. U.S. fleet sales as a percentage of total U.S. sales were down from 28 percent in the first quarter of 2013 to 23 percent in the first quarter this year.
Worldwide vehicle shipments were 668,000 for the quarter, up 16 percent from 574,000 a year ago.
For the full-year 2014, the company still expects adjusted net income to be in the range of $2.3 billion - $2.5 billion, modified operating profit of $3.7 billion - $4.0 billion, net revenue of about $80 billion, and Worldwide vehicle shipments of about 2.8 million.
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