Chrysler reports 3rd quarter profit, raises forecast

Chrysler Group LLC World Headquarters, Technical Center in Auburn Hills

Chrysler Group LLC, which emerged from bankruptcy and a U.S. government backed bailout last year, has been having some trouble being a shining star. However, today the Auburn Hills automaker announced that its third-quarter net losses came down to $84, compared to a loss of $172 million during the same period last year.

Chrysler reported operating profit of $239 million for the period ending Sept. 30 and said that net revenues increased to $11.0 billion.

“Chrysler”s financial success is dependent upon the vehicles we design, build and sell,” said CEO Sergio Marchionne. “In a mere 16 months, the Company is delivering 16 all-new or refreshed products led by the critically acclaimed all-new 2011 Jeep Grand Cherokee and including the Fiat 500, signaling the return of the Fiat brand to the U.S. and Canada. We are committed to ensuring that every new vehicle this company launches has the same high quality and technological advances as the Jeep Grand Cherokee. Our 2010 accomplishments are just the beginning of building Chrysler Group into a vibrant and competitive auto maker.”

Chrysler increased its full-year guidance to an operating profit of about $700 million, compared to a previously announced range of $200 million.

Click through for the press release.

Press Release:

Chrysler Group LLC Reports Operating Profit of $239 Million for the Period Ended September 30, 2010; Company Revises Guidance Upward for Full Year 2010

  • Net Revenues increased to $11.0 billion in Q3 2010, up 5.2 percent from Q2, and Net Loss reduced to $84 million from $172 million in Q2 2010
  • Positive Cash Flow of $419 million in third quarter, further strengthening Cash Position to $8.3 billion as of September 30, 2010
  • Based on continued operating performance improvement, full year guidance is revised upwards to an Operating Profit of ~$0.7 billion (from $0.0-0.2 billion), Positive Free Cash Flow of ~$0.5 billion (from negative $1 billion)

November 8, 2010 , Auburn Hills, Mich. – Chrysler Group LLC today issued its financial results for the third quarter 2010 and revised upwards its full year 2010 guidance based on continued operating performance improvements.

Sergio Marchionne, Chief Executive Officer of Chrysler Group LLC stated, “A year ago, Chrysler Group laid out clear and concise five year financial goals and after three consecutive quarters of better than forecasted results, we are not only living up to our commitments but we are also exceeding our 2010 financial objectives.

– By: Omar Rana