US: Chrysler boosts operating profit

By Graeme Roberts | 9 August 2010

Chrysler Group on Monday said its second quarter operating profit was US183m, up $40m over the first quarter on revenues up 8.2% to $10.5bn.

The net loss was $172m in Q2 2010 "due to improved operating profit", the automaker said. The company had reported a $197m net loss for the first quarter of this year and did not report second quarter results a year ago. It has previously said it lost $3.8bn from 10 June 2009, when it exited bankruptcy, to 31 December, 2009.

Ford recently reported second quarter net income of $2.6bn and General Motors Co. is expected to report a Q2 net profit later this week.

Chrysler said cash at 30 June increased to $7.8bn, bringing total available liquidity to more than $10bn. Net debt decreased to $3.4bn.

The company said it was keeping its 2010 guidance unchanged (including a minimum of operating breakeven) on revenues of $40 - 45bn but would probably revise upwards on the basis of Q3 2010 results.

First half operating profit was $326m on revenues of $20.2bn and the net loss was $369m.

"The second quarter operating profit confirms that Chrysler Group is on track to achieve its goals, yet an extraordinary amount of work still lies ahead," said CEO Sergio Marchionne.

Worldwide vehicle sales rose 22% to 407,000 units in the second quarter.