Chrysler Earnings Increase 2.4%

Chrysler Corp.’s first-quarter profit rose a modest 2.4 percent amid higher incentive costs and stiffer competition.

Chrysler said its net income increased to $1.03 billion, or $1.45 a share, slightly more than the $1.43-a-share average estimate of 14 analysts surveyed by First Call Corp. The automaker earned $1.01 billion, or $1.30, in the year-earlier period.

While Chrysler’s revenue rose 7.3 percent to $16.1 billion from $15.0 billion, the company lost market share in the quarter, mostly to Japanese competitors who brought out new vehicles and took advantage of a strong dollar.

Chrysler charged the costs of a new minivan incentive program announced this week against the first quarter, said David Healy, a Burnham Securities analyst. Otherwise, he said, the company “would’ve beat estimates by about 12 cents instead of 2 cents.”

Chrysler was the first U.S. automaker to report first-quarter earnings. General Motors Corp. will report its earning Monday and Ford Motor Co. on Wednesday.