Chrysler Group LLC lost USD 690 million (PhP 30.3 billion) in the first quarter of 2014 due to USD 1.2 billion (PhP 52.5 billion) in losses, according to its preliminary financial report.
The company said the loss includes “the unfavorable effects of two significant infrequent items”: a USD 504 million (PhP 22.1 billion) non-cash loss to pay debt related to the pre-payment of the Union Auto Workers (UAW) Retiree Medical Benefits Trust Note (VEBA Trust Note) and a USD 672-million (PhP 29.4 billion) charge for the UAW’s commitment to support the company associated with the January 2014 memorandum of understanding signed with the UAW.
Excluding the infrequent items, the adjusted net income for the first quarter was USD 486 million (PhP 21.3 billion), up by nearly half from last year’s USD 320 million (PhP 14 billion).
The net revenue for the quarter was USD 19 billion (PhP 831.8 billion), up 23 percent from USD 15.4 billion (PhP 674 billion) last year, primarily driven by an increase in vehicle shipments, including Ram pickup trucks and the all-new Jeep Cherokee.
The modified operating profit for the first quarter was USD 586 million (PhP 25.7 billion), up from USD 435 million (PhP 19 billion) in the same period last year. The 35-percent increase was due to higher shipments, higher advertising costs, higher depreciation and amortization costs and foreign exchange effects.