Fiat controlled Chrysler booked a 177% improvement in operating profit to US$507m in the second quarter of 2011 but, though revenues rose 30% to $13.7bn, the bottom line was a net loss of $370m ($172m a year ago) though that included a one-time $551m charge to eleminate debt.

Without that charge, Chrysler would have made net profit of $181m, the automaker said.

Cash at 30 June was $10.2b, up $0.3bn from 31 March and free cash flow for the second quarter was $174m versus $491m in 2010.

Worldwide vehicle sales in the quarter rose 19% to 486,000 units, US market share increased to 10.6% from 9.4% in Q2 2010 and Canadian market share increased to 14.9% from 12.9%.

First half sales also rose 19% to 880,000 vehicles.

“There is no doubt that Chrysler Group has taken a huge step forward this quarter,” said CEO Sergio Marchionne. “Refinancing our debt and repaying our government loans six years early, reinforces our conviction that we are on the right path to rebuilding this company and restoring it to its rightful place on the global automotive landscape.”

Outlook

For the full year, Chrysler forecast net revenues of over $55bn, modified operating profit of over $2bn, adjusted net income of $0.2-$0.5bn and free cash flow of over$1bn.

In May Chrysler completed refinancing and full repayment of the US and Canadian government loans and, just days ago, Fiat acquired majority control by acquiring the remaining government stakes in the US firm.