Chrysler Posts Net Loss of $370 million for Second Quarter, Net Revenues 30 Percent Higher
AUBURN HILLS, MICHIGAN - For the second quarter of 2011, Chrysler Group posted a net loss of $370 million, compared to a $172 million loss for the first quarter a year ago. This "excluded a non-recurring $551 million charge on the extinguishment of debt," Chrysler noted in a statement, which also detailed the payoff of the remainder of government loans, paving the way for new parent Fiat to take a majority interest earlier this year.
Chrysler says its adjusted net income for the quarter was a positive $181 million. "Modified operating profit" was $507 million, or 3.7 percent of net revenues, versus $183 million for the second quarter of last year.
Net revenues totaled $13.7 billion, up 30 percent from year-earlier net revenues of $10.5 billion. Net revenues totaled $26.8 billion for the first half, up 33 percent from the first half of '10. New and refreshed models raised profits per vehicle for the better result, Chrysler said.
"There is no doubt that Chrysler Group has taken a huge step forward this quarter," Chief Executive Officer Sergio Marchionne said in a prepared statement. "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."
"We are changing both the image and substance of our company in order to regain the faith of consumers. There is no substitute for hard work and we are committed to continuing to deliver on the business plan numbers we outlined."
Chrysler had $10.2 billion cash on hand as of June 30, up by $300 million from March 31.
Fiat Auto reports second quarter revenue Tuesday. Marchionne is expected to outline Fiat and Chrysler's new management structure in a conference call today.
Source: Chrysler Group LLC