One-Time Tax Gain Nets Chrysler $1.6 Billion In Q4 2013

TTAC Staff
by TTAC Staff
one time tax gain nets chrysler 1 6 billion in q4 2013

The American half of the newly dubbed Fiat Chrysler Automobiles reported a net income of $1.6 billion in Q4 2013, the majority of which came from a one-time tax gain of $962 million.

Automotive News reports that revenue in the fourth quarter for Chrysler advanced 24 percent to $21.4 billion, while total revenue for the outgoing year totaled $72.1 billion, up 10 percent from 2012’s $65.8 billion. Meanwhile, the total adjusted net income in 2013 for the brand came out to $1.8 billion, $2.8 billion unadjusted.

Within the next four to six weeks, Chrysler’s 37,200 unionized hourly employees will receive profit-sharing checks to the tune of $2,500, with an extra $1,000 split into two awards for quality and performance to be distributed in June and December, respectively. Some individual plants will also add to the pot based on their own quality and efficiency goals.

Regarding market share, Chrysler’s home market gained two-tenths of a percentage point to 11.6 percent in 2013 on the backs of 1.8 million units sold in the United States, an increase of 9 percent driven by the brand’s redesigned truck and SUV lines. Globally, 2.6 million vehicles in 2013 were delivered, including those made for parent company Fiat.

As far as cash on-hand and debt are concerned, Chrysler reported a nest egg of $13.3 billion with $12.3 billion in gross industrial debt; in 2012, the brand held $11.6 billion in cash and $12.6 billion in debt. The bottom line marks the first time Chrysler held more cash than debt since the Italo-American marriage was consummated before the U.S. federal government back in 2009.

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  • I Have always bet on you dear Chrysler. You are the wind beneath my wings...

  • RogerB34 RogerB34 on Jan 30, 2014

    As of 10/1/13 GM and Chrysler owed you $32.5B less $1.6B in interest etc. TARP. Next report due Feb should see some improvement due to GM. Chrysler a laggard in repayments.

    • Lorenzo Lorenzo on Jan 30, 2014

      Care to expand on that? There were Canadian government funds involved and federal funds paid to union entities. The accounting can be tricky.

  • RobertRyan RobertRyan on Jan 30, 2014

    Now the Company has a HQ in the UK, incorporated in the Netherlands, listed on the NYSE and Milan Exchanges