Chrysler has announced that they lost $690 million in the first quarter of 2014, but this wasn’t due to a problem with sales, rather to one-time costs incurred during the time period. The company both repaid debts and repurchased shares that were held in a UAW trust.
The debt repayment made to the UAW Retiree Medical Benefits Trust amounted to $504 million while the share repurchase was $672 million. This was all part of the plan when a deal was made between Chrysler, Fiat, and the UAW trust that allowed Fiat to become 100% owner of the company back in January.
Without these expenses, Chrysler would have posted a $426 million profit instead of the loss. A year ago, the company posted a $166 million profit over the same period showing that the company’s performance is improving. Looking solely at revenue, the picture looks much brighter with $18.9 billion for the quarter this year which is up 23% from $15.4 billion last year.
Despite the first quarter loss, Chrysler still expects to earn a profit of $2.3 billion to $2.5 billion by the end of the year.
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Nicole Wakelin fell in love with cars as a teenager when she got to go for a ride in a Ferrari. It was red and it was fast and that was all that mattered. Game over. She considers things a bit more carefully now, but still has a weakness for fast, beautiful cars. Nicole also writes for NerdApproved and GeekMom.