Chrysler today announced its first quarterly profit since the new company emerged from bankruptcy reorganisation in June 2009.
Net income for the first quarter of US$116m compares with a net loss of US$197m in the same quarter last year. Net revenue in Q1 was put at US$13.1bn, up 35% on last year.
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Global sales of Chrysler Group new cars and trucks increased 18% year-on-year to 394,000 vehicles in the first quarter. Chrysler said the improvement reflected greater availability at dealerships of the 16 ‘all-new or significantly refreshed products launched in 2010’ and was boosted by successful launch campaigns, along with an improving US automotive industry.
“Chrysler Group’s improved sales and financial performance in the first quarter show that our rejuvenated product lineup is gaining momentum in the marketplace and resonating with customers,” said Sergio Marchionne, Chrysler Chief Executive Officer.
“These results are a testament to the hard work and dedication of our employees, suppliers and dealers, all of whom are helping Chrysler create a new corporate culture built on the quality of our products and processes, and simple, sound management principles.
“We remain focused on delivering great products to our customers and continuing to achieve the sales and financial targets outlined in our 2010-2014 business plan,” added Marchionne.
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By GlobalDataThe quarterly profit at Chrysler is a significant milestone for the company. While it reported operating profits last year, interest payments to the US and Canadian governments tipped it into loss. Chrysler lost US$652m last year.
Last week, Chrysler announced a plan to raise financing from a group of banks to pay off its government loans and lower its interest costs. It is aiming to complete refinancing by the end of June.
Chrysler also confirmed its 2011 guidance for net income of between US$200m and US$500m with projected revenues exceeding US$55bn for the year.
See also:
US: Chrysler to repay US and Canadian loans in Q2
US: Chrysler operating profit beats guidance; 2010 net loss
