Chrysler turns first profit since bankruptcy - Dodge Nitro Forum
Chrysler/Dodge/Jeep News Find out the latest scoop here!

 
LinkBack Thread Tools Display Modes
post #1 of 4 (permalink) Old 05-02-2011, 06:55 AM Thread Starter
Super Moderator
 
rickaren's Avatar
 
Join Date: Nov 2006
Location: Indiana
Posts: 22,847
Garage
Exclamation Chrysler turns first profit since bankruptcy

CHRYSLER GROUP LLC ACHIEVED NET INCOME OF $116 MILLION IN FIRST QUARTER 2011; FIRST QUARTERLY NET INCOME SINCE COMPANY BEGAN OPERATIONS IN JUNE 2009

Net Income totaled $116 million in Q1 2011 compared to a net loss of $197 million in Q1 2010

Modified Operating Profit totaled $477 million in Q1 2011, up from $143 million in Q1 2010

Net Revenues in Q1 2011 were $13.1 billion, up 35 percent from $9.7 billion in Q1 2010

Cash at March 31, 2011, was $9.9 billion, up $2.5 billion from December 31, 2010

May 2, 2011 , Auburn Hills, Mich. - Chrysler Group LLC today announced its preliminary financial results for the first quarter (Q1) 2011, reporting that it achieved its first quarterly net income since the Company began operations in June 2009.

Net Income in Q1 2011 was $116 million compared to a net loss of $197 million in Q1 2010.

“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, Chief Executive Officer, Chrysler Group LLC. “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.

Rick

Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is offline  
Sponsored Links
Advertisement
 
post #2 of 4 (permalink) Old 05-02-2011, 06:58 AM Thread Starter
Super Moderator
 
rickaren's Avatar
 
Join Date: Nov 2006
Location: Indiana
Posts: 22,847
Garage
Chrysler turns first profit since bankruptcy

Posted: May 2, 2011



DETROIT (AP) - Chrysler has turned its first profit since leaving bankruptcy, helped by stronger sales of vehicles like the Jeep Grand Cherokee.

The company says it earned $116 million in the first quarter compared with a loss of $197 million a year earlier. Revenues rose 35 percent to $13.1 billion.

Chrysler's survival was in doubt in early 2009, when it entered bankruptcy protection and needed a $10 billion government bailout. Since then it has shed debt and closed plants and dealerships. The improving economy also helped sales.

Chrysler says sales rose 18 percent in the January-March period as buyers responded to models like the Grand Cherokee, which has an upgraded interior and improved fuel economy.

Chrysler says buyers were willing to pay more for its vehicles, so it could cut back on discounts that hurt profits.


Rick

Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is offline  
post #3 of 4 (permalink) Old 05-02-2011, 07:04 AM Thread Starter
Super Moderator
 
rickaren's Avatar
 
Join Date: Nov 2006
Location: Indiana
Posts: 22,847
Garage
Chrysler Group LLC Announces Refinancing Transactions

May 2, 2011 , Auburn Hills, Mich. - Chrysler Group LLC (“Chrysler Group”) announced today that it plans to commence new financing transactions consisting of:

• senior secured credit facilities including an expected $3.5 billion six-year term loan and a $1.5 billion five-year revolving credit facility; and

• an expected $2.5 billion in new secured debt securities (the “Notes”), expected to have eight- and ten-year maturities.

Chrysler Group intends to use the net proceeds of the term loan and the Notes offering, together with the $1.3 billion in proceeds from the recently announced exercise by Fiat of an option to acquire an incremental 16% ownership interest in Chrysler Group, to repay its loans from the U.S. and Canadian governments in full and to pay related fees and expenses. The completion of the Notes offering, the credit facilities and the equity investment by Fiat are expected to occur concurrently.

The Notes will be sold within the United States to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Notes will not be and have not been registered under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration requirements of the Securities Act and applicable state laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities.

Forward-Looking Statements

This document contains forward-looking statements that reflect management’s current views with respect to future events. The words “anticipate,” “assume,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project” and “should” and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties including market conditions and the price and market for securities to be offered and other risks relating to Chrysler Group’s business and industry, including, but not limited to: the effective implementation of the Chrysler Group LLC 2010 – 2014 Business Plan outlined on November 4, 2009, including successful vehicle launches; industry SAAR levels; continued economic weakness, especially in North America, including continued high unemployment levels and limited available financing for our dealers and consumers; introduction of competing products and competitive pressures which may limit our ability to reduce sales incentives; supply disruptions resulting from the natural disasters in Japan in March 2011; and our ability to realize benefits from our industrial alliance with Fiat. If any of these or other risks and uncertainties occur, or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.

About Chrysler Group LLC
Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat S.p.A., produces Chrysler, Jeep, Dodge, Ram, Mopar and Fiat vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler Group’s culture of innovation, first established by Walter P. Chrysler in 1925, and Fiat’s complementary technology that dates back to its founding in 1899.

Headquartered in Auburn Hills, Mich., Chrysler Group’s product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler, Dodge Challenger and Ram 1500. Fiat contributes world-class technology, platforms and powertrains for small- and medium-size cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles.

Rick

Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is offline  
 
post #4 of 4 (permalink) Old 05-02-2011, 07:09 AM Thread Starter
Super Moderator
 
rickaren's Avatar
 
Join Date: Nov 2006
Location: Indiana
Posts: 22,847
Garage
May 2, 2011
2 Years After a Bankruptcy, Chrysler Posts a Profit
By NICK BUNKLEY

DETROIT — The Chrysler Group posted on Monday its first quarterly profit since going through bankruptcy reorganization in 2009, as the company sold more cars at higher prices.

Chrysler, the only Detroit automaker to lose money last year, earned $116 million in the quarter, after losing $197 million in the period a year ago. Revenue grew 35 percent, to $13.1 billion, while sales were up 18 percent.

“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,” Sergio Marchionne, the chief executive of Chrysler and its Italian partner, Fiat, said in a statement. “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.”

Chrysler said it had $9.9 billion in cash on hand as of March 31, an increase of $2.6 billion in three months, and $13.3 billion in debt.

The results are a milestone for Chrysler, which narrowly avoided liquidation after its decade-long tie-up with the German carmaker Daimler dissolved and a private equity firm, Cerberus Capital Management, failed in its revival efforts. The profit comes almost exactly two years after President Obama forced Chrysler to file for bankruptcy protection and form a partnership with Fiat because he and other officials believed it could not survive on its own.

Chrysler reported operating profits in each quarter of 2010, but each time interest payments to the American and Canadian governments, which totaled $1.23 billion for the year, resulted in losses over all. Chrysler lost $652 million last year.

The company also reiterated its previous forecast for net income this year of $200 million to $500 million.

The company plans to significantly reduce its interest payments by refinancing the $7.5 billion in government loans it received before and during its bankruptcy. On Monday, Chrysler said it would repay the loans by the end of June by selling $2.5 billion in bonds and borrowing from new secured credit facilities totaling $5 billion.

Interest payments in the first quarter totaled $348 million, up from $311 million in the period a year earlier. Mr. Marchionne declined last week to say how much Chrysler would save through its refinancing.

Chrysler introduced or revamped 16 models in 2010, and it said increased sales of many of them played a role in its first-quarter profit, as market share increased in the United States and Canada, its two largest markets.

Jesse Toprak, vice president for industry trends and insight at TrueCar.com, said Chrysler still needed to make its vehicle lineup more appealing, particularly in the small-car segments that have become more popular amid rising gas prices.

“The outstanding issue for them is their continued reliance on S.U.V.’s and trucks,” Mr. Toprak said. “They’re on the road to recovery, but there’s much more to be done to really claim that Chrysler is back on their feet and healthy.”

Pickups and other light trucks accounted for 78 percent of Chrysler’s first-quarter sales in the United States compared with about 60 percent for General Motors and the Ford Motor Company.

Some Chrysler began selling the tiny Fiat 500 car this spring, and it plans to bring out more small cars based on Fiat designs and technology within the next several years, but most of its focus since bankruptcy has been on redoing larger models like its Jeep Grand Cherokee and Dodge Durango sport-utility vehicles.

Chrysler remains far less profitable than its domestic competitors. Ford earned $6.6 billion last year and $2.55 billion in the first quarter of 2011. Ford’s sold 3.5 times as many cars and trucks as Chrysler last quarter, but its profit was 22 times as much as Chrysler’s.

G.M., which filed for and emerged from bankruptcy a month later than Chrysler, earned $4.7 billion in 2010. It is scheduled to reveal first-quarter results Thursday.

The United States and Canada own a combined 10.8 percent of Chrysler, which is expected to have an initial public offering later this year or in early 2012. Chrysler is 30 percent owned by Fiat, which plans to pay $1.27 billion for an additional 16 percent stake when the government loans are repaid. Chrysler’s majority owner is currently a trust fund set up to cover the cost of health care for hourly retirees.



Rick

Nitro Year: 2007 (1 of 91,815 sold in 07)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
rickaren is offline  
Sponsored Links
Advertisement
 
Reply

  Dodge Nitro Forum > Dodge Nitro News & Polls > Chrysler/Dodge/Jeep News

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Dodge Nitro Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Similar Threads
Thread Thread Starter Forum Replies Last Post
Chrysler to post Q2 profit rickaren Chrysler/Dodge/Jeep News 0 07-21-2010 12:59 PM
Jeep Turns 70! rickaren Chrysler/Dodge/Jeep News 0 02-15-2010 11:05 AM
Kenosha:Chrysler turns to retirees rickaren Chrysler/Dodge/Jeep News 0 12-28-2009 01:47 PM
Fiat Turns Its Fortunes Around rickaren Chrysler/Dodge/Jeep News 0 07-29-2009 06:36 PM
Chrysler won't show profit in '08 rickaren Chrysler/Dodge/Jeep News 0 04-19-2008 05:16 PM

Posting Rules  
You may not post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome