Despite a $551m loss on extinguishment of debt in the second quarter, Chrysler on Wednesday (1 February) reported full year 2011 net income of $183m, up from a net loss of $652m in 2010. Fourth quarter net income was $225m (-$199m in 2010) and full year operating profit more than doubled to $2bn.
Sales rose 31% to $55bn while fourth quarter revenue increased 41% to $15.1bn.
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Worldwide vehicle shipments rose from 1.6m in 2010 to 2m last year.
The net profit of $183m for 2011 exceeded the target set in November 2009, Chrysler said in a statement.
The profit came after a $551m loss on extinguishment of debt booked in the second quarter of 2011, when Chrysler repaid its outstanding loans from the US Treasury and Canadian governments in full, with interest, six years early.
Excluding the charge, adjusted net profit for the full year 2011 was $734m, “exceeding the company’s 2011 guidance and further delivering on the goals established two years ago”, Chrysler said.
“The house is in good order. We are proud of the work we’ve done,” said chariman and CEO Sergio Marchionne.
“Now we greet a new year of high expectations with our heads down, forging ahead and focused on executing the goals we’ve set for ourselves as a company.”
