Chrysler Lowers Full Year Earnings Target

Chrysler Group has lowered its full-year earnings target, even though its profit during the second quarter was up 16% on a higher demand for Ram pickups and the Jeep Cherokee.

Net income was up to close the quarter at $507 million, compared to last year during the same quarter of $436 million. Sales were up by 7.1% to end the quarter at $18 million. The majority owner of Chrysler, Fiat SpA will report its earnings separately on Tuesday.

The CEO of both companies, Sergio Marchionne, is banking on Chrysler and its 39 straight months of sales gains in the U.S. to offset Fiat’s losses in his brands in Europe.

This year it is expected that more than 15.4 million light trucks and cars will be sold by automakers in the United States, which is the most in any year since 2007, which was prior to the financial crisis.

Marchionne said that the timing of the launches of products and the increases in capacity has caused the performance this year to be biased towards the second six months of the year.

Chrysler forecast that operating profit would be between $3.3 billion and $3.8 billion, which was down from the previous target of $3.8 billion.

Chrysler said it would deliver roughly 2.6 million new vehicles, compared to an original range of 2.6 to 2.7 million.

Chrysler’s deliveries in the U.S. were up 8.9% during the first six months of 2013 to end at 908,332 light trucks and cars, which was helped thanks a gain of 23% in demand for Ram pickups and deliveries for the new look Dodge Dart.

Marchionne is in the process of purchasing the remaining 41.5% of Chrysler that is not already owned by Fiat to make it a global manufacturer that can compete with the likes of Volkswagen AG and General Motors.