Chrysler Group Reports Full-Year 2012 Net Income of $1.7 Billion

       Chrysler Group Reports Full-Year 2012 Net Income of $1.7 Billion

FULL-YEAR MODIFIED OPERATING PROFIT TOTALED $2.9 BILLION, UP 47 PERCENT, AND
FREE CASH FLOW WAS $2.2 BILLION

PR Newswire

AUBURN HILLS, Mich., Jan. 30, 2013

AUBURN HILLS, Mich., Jan. 30, 2013 /PRNewswire/ -- 

  o Chrysler Group LLC's full-year 2012 net income improved more than
    eight-fold to $1.7 billion, from $183 million a year ago
  o Net revenue for the year was $65.8 billion, up 20 percent from $55.0
    billion a year ago; fourth-quarter revenue was up 13 percent to $17.2
    billion
  o Modified Operating Profit^(b) improved to $2.9 billion for the year, up 47
    percent from the prior year; fourth-quarter Modified Operating Profit was
    up 40 percent to $711 million
  o Cash^(d) at year's end was $11.6 billion compared with $9.6 billion a year
    ago and $11.9 billion at Sept. 30, 2012; Free Cash Flow^(e) for the year
    was $2.2 billion compared with $1.9 billion a year ago
  o Net Industrial Debt^(f) was $1.0 billion at Dec. 31, 2012, an improvement
    of $1.9 billion from a year ago
  o Worldwide vehicle shipments were 2.4 million for the year, up 20 percent
    from 2.0 million a year ago; fourth-quarter shipments were 613,000
  o Worldwide vehicle sales for the full year 2012 totaled 2.2 million, up 18
    percent from a year ago; fourth-quarter sales were 533,000
  o U.S. market share was 11.2 percent for the full year, up from 10.5 percent
    market share in 2011; market share in Canada was 14.2 percent for the year
  o The new 2013 Ram 1500 has been named "2013 North American Truck/Utility of
    the Year," 2013 Motor Trend's "Truck of the Year," "Truck of Texas,"  AOL
    Autos "Truck Of The Year," and Detroit Free Press "Truck of the Year"

Chrysler Group LLC today reported preliminary net income of $1.7 billion for
the full year 2012, up from net income of $183 million a year ago, exceeding
the guidance provided earlier in the year.  Full-year 2011 Adjusted Net
Income^(a) was $734 million, after adjusting for the $551 million loss on
extinguishment of debt recognized in the second quarter of 2011.

"While we are pleased to have achieved strong financial results in 2012, the
enterprise we are crafting is not complete," Chrysler Group LLC Chairman and
CEO Sergio Marchionne said. "The goals we've set for the year ahead reflect a
common desire by everyone from leadership to the shop floor to succeed and
sustain the power of the house we are building. Our aim is meaningful, but it
is not complicated, and only a preoccupation with quality can achieve it. We
pause for a moment to enjoy our accomplishments, but we will not stop. Our
continued achievement relies upon maintaining a humble spirit and an intense
focus on the integrity of our work. And so we press on."

 CHRYSLER GROUP LLC
                                               Q4 2012                FY 2012
                                 Q4     Q4              FY    FY
 ($Mils)                                       B/(W)                 B/(W)
                                2012    2011           2012   2011 
                                               Q4                    FY 2011 
                                               2011 
 Net Revenue                    17,152  15,129 2,023   65,784 54,981 10,803
 Modified Operating Profit      711     508    203     2,912  1,975  937
 Modified EBITDA                1,337   1,171  166     5,450  4,754  696
 Net Income                     378     225    153     1,668  183    1,485
 Add:  Loss on Extinguishment   -       -      -       -      551    (551)
 of Debt
      Adjusted Net Income       378     225    153     1,668  734    934
 Cash                           11,614  9,601  2,013
 Note - Refer to the Non-U.S. GAAP Financial Information and Other Items
 section of this release for information

            regarding non-GAAP financial measures

For the fourth quarter, net income was $378 million on revenue of $17.2
billion, up 68 percent from $225 million a year earlier. For the year, the
Company reported revenue of $65.8 billion, an increase of 20 percent from a
year ago, primarily due to higher vehicle shipments.

Modified Operating Profit was $2.9 billion for the year, or 4.4 percent of
revenue, up 47 percent from $2.0 billion reported in the prior year. The
increase resulted from continuing strong sales and pricing, partially offset
by an increase in the proportion of sales from passenger cars, including the
Dodge Dart and Fiat 500, versus trucks and SUVs; increased
research-and-development costs for future models; and increased spending on
advertising. Modified Operating Profit for the quarter was $711 million, a 40
percent increase from the same period last year.

Modified EBITDA^(c) was $5.5 billion for the year, or 8.3 percent of net
revenue, an increase of 15 percent from the prior year. For the fourth
quarter, Modified EBITDA was $1.3 billion.

Interest expense for 2012 totaled $1.1 billion, compared with $1.2 billion in
2011, including non-cash interest accretion of $119 million and $170 million
in each year, respectively. For the fourth quarter, interest expense was $266
million, including $28 million of non-cash interest accretion.

Cash at Dec. 31, 2012, was $11.6 billion compared with $11.9 billion at Sept.
30, 2012, and $9.6 billion as of Dec. 31, 2011. Total available liquidity as
of Dec. 31, 2012, was $12.9 billion, including $1.3 billion available under a
revolving credit facility. Free Cash Flow was a positive $2.2 billion for the
year 2012, as compared with $1.9 billion a year ago. Fourth-quarter 2012 Free
Cash Flow was a negative $280 million reflective of normal fourth-quarter
seasonality.

Gross Industrial Debt^(f) at Dec. 31, 2012, was $12.6 billion, consistent with
Sept. 30, 2012, and slightly higher than the $12.5 billion at Dec. 31, 2011.
Net Industrial Debt was $1.0 billion at year's end, slightly higher than the
$0.7 billion at Sept. 30, 2012, and well below the $2.9 billion at Dec. 31,
2011.

Worldwide vehicle shipments for the year were 2.4 million, achieving our
full-year target. The year-end total marked an increase of 20 percent from
year-end 2011, when the Company shipped 2.0 million vehicles. For the fourth
quarter, worldwide vehicle shipments were 613,000, up 13 percent from the same
period a year ago.

Worldwide vehicle sales were 2.2 million for the year, up 18 percent from the
1.9 million vehicles sold in 2011.  The increase was driven by a 21 percent
increase in the Company's total U.S. sales. Worldwide vehicle sales were
533,000 for the quarter, up from 479,000 in the same period a year ago.
Chrysler Group's December 2012 U.S. sales marked the 33^rd consecutive month
of year-over-year sales gains. This upward trend reflects improvements in our
product portfolio, culminating in a 41 percent year-over-year increase in U.S.
passenger car sales versus the prior year. Chrysler Group's U.S. market share
for the year was 11.2 percent compared with 10.5 percent in the prior year;
market share in Canada was 14.2 percent for the year.

U.S. dealers' days' supply of inventory at the end of 2012 was 73 days,
compared with 65 days at the end of September 2012, and 64 days at the end of
December 2011, primarily driven by deliveries of the newly launched Dodge Dart
and 2013 Ram 1500 pickup.

For the year, international vehicle sales (outside North America) increased 41
percent from 2011, to 277,000, including 67,000 vehicles manufactured by
Chrysler Group and sold by Fiat as Lancia and Fiat branded vehicles.

2013 Guidance

The targets for 2013 are as follows:

  o Worldwide vehicle shipments of ~2.6-2.7 million
  o Net revenue of ~$72-75 billion
  o Modified Operating Profit of ~$3.8 billion
  o Net income of ~$2.2 billion
  o Free Cash Flow of ≥$1 billion

Significant Corporate Events in the Fourth Quarter of 2012 and subsequent

Nov. 14: The Human Rights Campaign named Chrysler Group one of 252 leading
employers to achieve a perfect score on the group's 2013 Corporate Equality
Index

Nov. 15: Chrysler Group announced that it will invest nearly $240 million to
increase engine capacity and will add approximately 1,250 new jobs at three of
its Michigan plants: Mack 1 Engine Plant, Trenton North Engine Plant and
Warren Truck Assembly Plant

Nov. 29: Chrysler Group said it would pay the second half of the $3,500
ratification bonus on Dec. 21, 2012, to its eligible UAW-represented
employees, waiving the financial threshold outlined in the collective
bargaining agreement that otherwise would not have been paid until the first
quarter of 2013 at the earliest

Dec. 17: The Michigan Hispanic Chamber of Commerce has named Chrysler Group
"Corporation of the Year" for 2012, citing the Company's outstanding
commitment to supplier diversity and, particularly, the inclusion of
Hispanic-owned businesses in its supply base

Jan. 9, 2013: Chrysler Group announced that it had received a demand from the
UAW Retiree Medical Benefits Trust (VEBA) pursuant to the Shareholder
Agreement, seeking registration of approximately 16.6 percent of Chrysler
Group's outstanding equity interests currently owned by VEBA

Product News

  o The new 2013 Ram 1500 pickup was named "2013 North American Truck/Utility
    of the Year," 2013 Motor Trend's "Truck of the Year," "Truck of Texas,"
    AOL Autos "Truck of the Year," and Detroit Free Press "Truck of the Year"
  o Five Chrysler Group models received the 2013 Consumer Guide® Automotive
    'Best Buy' Award: Dodge Grand Caravan, Journey and Durango; Chrysler Town
    & Country; and Ram 1500 pickup
  o Twelve Chrysler Group models made the Insurance Institute for Highway
    Safety's (IIHS) annual list of "Top Safety Picks"
  o New Jeep Wrangler Unlimited Moab Edition won the respected "Four Wheeler
    of the Year" award from Four Wheeler magazine editors
  o Maxim Magazine named the 2012 Chrysler 300 SRT8 the "Best Budget Bentley"
    and the 2013 Dodge Dart Rallye the "Best Italian Car Disguised as a U.S.
    Family Compact" in its RPM Awards
  o Auto123.com named the 2013 Jeep Grand Cherokee the "Midsize Utility of the
    Year" and the 2013 Dodge Charger "Full-Size Car of the Year"
  o The Fiat 500 took home the "Hot Hatch of the Year" in the CultureMap Auto
    Awards
  o Men's Journal deemed the 2013 Dodge Durango "MJ Approved"
  o Ruedas ESPN named the 2013 Dodge Dart "Best Sedan" in its 2012 Ruedas ESPN
    Awards
  o Made in the USA Foundation bestowed its Hall of Fame Award for Economy
    Cars to the 2013 Dodge Dart
  o The Hispanic Motor Press Awards recognized the 2013 Dodge Dart for Compact
    Car, the 2013 SRT Viper for American Muscle Car and the 2013 Ram 1500 for
    Pickup Truck
  o Popular Mechanics' "2013 Automotive Excellence Awards" went to the 2013
    Ram 1500 in the Hauling Category and to the 2013 SRT Viper in the Design
    Category

Additional Information

The Company will present its preliminary fourth-quarter and year-end 2012
financial results during an analyst webcast and conference call at 8:00 a.m.
Eastern Standard Time on Jan. 30, 2013, at www.chryslergroupllc.com. A
recording of the call will be posted on the same Chrysler Group website
approximately 90 minutes after the conclusion of the call.

The Company intends to publish financial statements for the year ended Dec.
31, 2012, prepared in accordance with U.S. Generally Accepted Accounting
Principles (U.S. GAAP), in March 2013, when it files its Annual Report on Form
10-K with the U.S. Securities and Exchange Commission (SEC).

Effective May 24, 2011, and in accordance with International Financial
Reporting Standards (IFRS), Fiat S.p.A. was required to consolidate Chrysler
Group's IFRS financial results in its consolidated financial statements.
Certain preliminary Chrysler Group financial results prepared in accordance
with IFRS will be included in the Fiat S.p.A. 2012 year-end financial earnings
press release, which will be available on the Investor Relations tab of the
Fiat S.p.A. website on Jan. 30, 2013, and discussed in the Fiat S.p.A. analyst
conference call, which will take place on Jan. 30, 2013
(http://www.fiatspa.com/en-US/investor_relations/investors/Pages/investors.aspx).

Non-U.S. GAAP Financial Information and Other Items

^(a)  Adjusted Net Income (Loss) is defined as net income (loss) excluding the
impact of infrequent charges, which includes losses on extinguishment of debt.
The reconciliation of net income to Adjusted Net Income, Modified Operating
Profit (defined below) and Modified EBITDA (defined below) for the three and
twelve months ended Dec. 31, 2012, and 2011, is detailed in Table 1 of the
attachment to the press release.

^(b)    Modified Operating Profit (Loss) is computed starting with net income
(loss) and then adjusting the amount to (i) add back income tax expense and
exclude income tax benefits, (ii) add back net interest expense (excluding
interest expense related to financing activities associated with a vehicle
lease portfolio the Company refers to as Gold Key Lease), (iii) add back
(exclude) all pension, other postretirement benefit obligations (OPEB) and
other employee benefit costs (gains) other than service costs, (iv) add back
restructuring expense and exclude restructuring income, (v) add back other
financial expense, (vi) add back losses and exclude gains due to cumulative
change in accounting principles, and (vii) add back certain other costs,
charges and expenses, which include the charges factored into the calculation
of Adjusted Net Income (Loss). The reconciliation of net income to Adjusted
Net Income, Modified Operating Profit and Modified EBITDA (defined below) for
the three and twelve months ended Dec. 31, 2012, and 2011, is detailed in
Table 1 of the attachment to the press release.

^(c)    Modified EBITDA is computed starting with net income (loss) adjusted
to Modified Operating Profit (Loss) as described above, and then add back
depreciation and amortization expense (excluding depreciation and amortization
expense for vehicles held for lease). The reconciliation of net income to
Adjusted Net Income, Modified Operating Profit and Modified EBITDA for the
three and twelve months ended Dec. 31, 2012, and 2011, is detailed in Table 1
of the attachment to the press release.

^(d)    Cash is defined as cash and cash equivalents.

^(e)    Free Cash Flow is defined as cash flows from operating and investing
activities, excluding any debt-related investing activities, adjusted for
financing activities related to Gold Key Lease. A reconciliation of net cash
provided by (used in) operating and investing activities to Free Cash Flow for
the three and twelve months ended Dec. 31, 2012, and 2011, is detailed in
Table 2 of the attachment to the press release.

^(f)     A reconciliation of financial liabilities to Gross Industrial Debt
and Net Industrial Debt at Dec. 31, 2012, Sept. 30, 2012, and Dec. 31, 2011,
is detailed in Table 3 of the attachment to the press release.

Forward-Looking Statements
This document contains forward-looking statements that reflect management's
current views with respect to future events. The words "anticipate," "assume,"
"believe," "estimate," "expect," "intend," "may," "plan," "project," "should"
and similar expressions identify forward-looking statements. Such statements
are subject to risks and uncertainties, including, but not limited to: the
effective implementation of the Chrysler Group LLC 2010 – 2014 Business Plan
outlined on Nov. 4, 2009, and subsequent updates, including successful vehicle
launches; industry SAAR levels; continued economic weakness, especially in
North America, including continued high unemployment levels and limited
availability of affordably priced financing for our dealers and consumers;
introduction of competing products and competitive pressures which may limit
our ability to reduce sales incentives; supply disruptions resulting from
natural disasters and other events impacting our supply chain; and our ability
to realize benefits from our industrial alliance with Fiat, particularly in
light of the economic crisis currently affecting several European countries.
In addition, any projections or targets on future financial performance are
based on the assumption that the Company maintains its status as a partnership
for U.S. federal and state income tax purposes and do not consider the impact
of a potential conversion into a corporation.  If any of these or other risks
and uncertainties occur, or if the assumptions underlying any of these
statements prove incorrect, then actual results may be materially different
from those expressed or implied by such statements. We do not intend or assume
any obligation to update any forward-looking statement, which speaks only as
of the date on which it is made. Further details of potential risks that may
affect Chrysler Group are described in Chrysler Group's 2011 Annual Report on
Form 10-K and its subsequent periodic reports filed with the SEC.

About Chrysler Group LLC

Chrysler Group LLC, formed in 2009 to establish a global strategic alliance
with Fiat S.p.A., produces Chrysler, Jeep, Dodge, Ram, Mopar, SRT and Fiat
vehicles and products. With the resources, technology and worldwide
distribution network required to compete on a global scale, the alliance
builds on Chrysler Group's culture of innovation, first established by Walter
P. Chrysler in 1925, and Fiat's complementary technology that dates back to
its founding in 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group's product lineup features
some of the world's most recognizable vehicles, including the Chrysler 300 and
Town & Country, Jeep Wrangler, all-new Dodge Dart, Ram 1500, Jeep Grand
Cherokee SRT8 and Fiat 500. Fiat contributes world-class technology, platforms
and powertrains for small- and medium-size cars, allowing Chrysler Group to
offer an expanded product line including environmentally friendly vehicles.

Attachment

These financial results are presented on a preliminary basis and will be
superseded by the financial results included in Chrysler Group's Annual Report
on Form 10-K to be filed with the SEC for the period ended Dec. 31, 2012.

Table 1: Reconciliation of Net Income to Adjusted Net Income, Modified
Operating Profit and Modified EBITDA
 CHRYSLER GROUP LLC
                                               Q4 2012                 FY 2012
                                 Q4     Q4               FY     FY
 ($Mils)                                       B/(W)                   B/(W)
                                 2012   2011             2012   2011
                                               Q4 2011                 FY 2011
 Net Income                      378    225    153       1,668  183    1,485
 Add:
      Loss on Extinguishment of  -      -      -         -      551    (551)
 Debt
 Adjusted Net Income             378    225    153       1,668  734    934
 Add (Deduct):
      Income Tax Expense         80     50     30        274    198    76
      Net Interest Expense       256    272    (16)      1,050  1,199  (149)
      Other Employee Benefit     (2)    (38)   36        (34)   (170)  136
 Costs (Gains)  \1
      Restructuring (Income)     (1)    (1)    -         (46)   14     (60)
 Expenses, Net & Other
 Modified Operating Profit       711    508    203       2,912  1,975  937
 Add:
      Depreciation and           626    663    (37)      2,538  2,779  (241)
 Amortization Expense \2
 Modified EBITDA                 1,337  1,171  166       5,450  4,754  696
 \1   Includes interest cost, expected return on plan assets and amortization
 of unrecognized losses
 \2   Excludes depreciation and amortization expense for vehicles held for
 lease

 

 

Table 2: Reconciliation of Net Cash Provided By (Used In) Operating and
Investing Activities to Free Cash Flow
  CHRYSLER GROUP LLC
                                             Q4 2012                 FY 2012
                               Q4    Q4              FY      FY
  ($Mils)                                    B/(W)                   B/(W)
                               2012  2011            2012    2011
                                             Q4 2011                 FY 2011 
  Net Cash Provided By         344   1,066   (722)   5,821   4,603   1,218
  Operating Activities
  Net Cash Used In Investing   (623) (1,096) 473     (3,557) (1,970) (1,587)
  Activities
  Investing activities
  excluded from Free Cash
  Flow:
          Change in Loans and  (1)   (2)     1       (2)     (6)     4
  Notes Receivables
          Proceeds from        -     -       -       -       (96)    96
  USDART  \3
  Financing activities
  included in Free Cash Flow:
          Repayments of Gold   -     (22)    22      (41)    (584)   543
  Key Lease Financing
  Free Cash Flow               (280) (54)    (226)   2,221   1,947   274
  \3   U.S. Dealer Automotive Receivables Transition LLC

 

 

Table 3: Reconciliation of Financial Liabilities to Gross Industrial Debt and
Net Industrial Debt
       CHRYSLER GROUP LLC
                                     Dec 31,       Sept 30,       Dec 31,
       ($Mils)
                                    2012          2012           2011 
       Financial Liabilities        12,603        12,640         12,574
            Less:   Gold Key Lease  -             -              (41)
       obligations
       Gross Industrial Debt        12,603        12,640         12,533
            Less:   Cash            (11,614)      (11,947)       (9,601)
       Net Industrial Debt          989           693            2,932

SOURCE Chrysler Group LLC

Website: http://www.chryslergroupllc.com
Contact: Media Inquiries, Gualberto Ranieri, +1-248-512-2226, or Shawn Morgan,
+1-248-512-2692; or Investor Relations, Tim Krause, +1-248-512-2923