Chrysler Earnings Stall on Costly Product Launches
Chrysler's quarterly profit fell 65 percent as it absorbed the costs of new-vehicle launches, the company said on Monday.
The No. 3 U.S. automaker also reaffirmed its financial forecasts for 2013, including net income of about $2.2 billion.
"We remain on track to achieve our business targets, even as the first-quarter results were affected by an aggressive product launch schedule," said Sergio Marchionne, chief executive officer of Chrysler as well as of its parent, Fiat SpA.
Shares of Italian automaker Fiat turned negative in midday trading after its U.S. unit Chrysler posted worse-than-expected first quarter results. (Click here to track the company's stock following the report.)
Earlier shares traded 1.2 percent higher before Chrysler said its first quarter net income fell 65 percent to $166 million on new product launches.
Net income in the first quarter fell to $166 million from $473 million a year before.
Net revenue fell 6 percent to $15.4 billion in the quarter.
"The Chrysler results were worse than we thought," said an analyst.