Chrysler posts $212M 3Q profit

Rising sales and higher prices helped push Chrysler Group LLC back into the black in the latest quarter, another sign that the once-troubled company is turning around under is new Italian management.

The Auburn Hills, Mich.-based Chrysler reported Thursday that its net income was $212 million for the July-September period, its second quarterly profit this year and only the second since 2006. Vehicle sales worldwide rose 24 percent, and revenue rose 19 percent to $13.1 billion.

In last year's third quarter, the privately held company lost $84 million, but Chrysler, now run by Italy's Fiat SpA, said its fortunes have improved because of increased demand for its new or revamped Chrysler, Dodge, Jeep and Ram cars and trucks.

"This house continues to be fully focused on financial performance and making outstanding cars and trucks by fully leveraging its alliance with Fiat," Sergio Marchionne, CEO of both companies, said in a statement.

For the first three quarters of the year, Chrysler has lost $42 million. But that's mainly due to a $551 million accounting charge for refinancing its government debt in the second quarter. Excluding the debt charge, the company expects to earn $200 million to $500 million for the full year.

Chrysler hasn't made an annual profit since 2005, but it's getting closer to profitability with a mix of strong new products. Under Marchionne, the company has changed factory procedures and is doing more rigorous quality testing, raising the reliability of its vehicles.

Chrysler's Jeep brand was the top brand from a U.S. automaker in Consumer Reports' latest reliability rankings, which were released Tuesday. Chrysler was also the most improved brand, moving up to 15th place from 27th. The Jeep Grand Cherokee, Chrysler 200 and Dodge Durango have been among the company's recent successes.

Chrysler also got good news on the labor front this week. On Wednesday, the United Auto Workers announced that 55 percent of the Chrysler workers voting on their new contract approved the agreement. The contract, which covers 23,000 U.S. factory workers, will hold down the company's costs by giving workers profit-sharing and other bonuses instead of annual raises.