The company on Wednesday reported that it made $619 million in the April-through-June quarter, compared with $507 million a year ago.
Revenue rose 14 percent to $20.5 billion.
Chrysler says its worldwide sales grew 12 percent in the quarter to 723,000 vehicles, with most of the increase in the U.S. Retail sales in the U.S. rose 16 percent, largely because of gains by the Jeep Grand Cherokee and Ram pickup.
Chrysler's U.S. market share rose almost a full percentage point to 12.1 percent.
The company raised its full-year forecast for worldwide shipments by 100,000 vehicles. It now expects to ship about 2.8 million cars and trucks.
Chrysler is in the process of merging with its Italian owner Fiat SpA. Fiat shareholders voted overwhelmingly on Aug. 1 in favor of the merger, which has been five years in the making.
The approval paves the way the new company, to be called Fiat Chrysler Automobiles NV, to list its shares in the U.S., likely by mid-October. It will be legally based in the Netherlands and have its fiscal home in Britain. U.S. operations will remain in Auburn Hills, Michigan, north of Detroit.
Fiat was granted management control and a 20 percent stake in Chrysler after it emerged from bankruptcy protection in 2009. Fiat gradually raised its stake and eventually became majority owner.
Sergio Marchionne, who is CEO of both companies and will lead the merged company, is widely credited with turning Chrysler around.