Chrysler Q2 Performance: $183 Million Operating Profit
After reporting its second consecutive quarterly operating profit in 2010, the Chrysler Group remains “on track to achieve its goals,” according to the company’s CEO, Sergio Marchionne. The bottom line for the automaker in the second quarter: An operating profit of $183 million, an improvement of $40 million as compared with its performance in the first quarter.
But that was just part of the good news from Chrysler, which recently released its financial results for the April-June timeframe.
Again comparing numbers with Q1, Chrysler Group net revenues increased 8.2 percent to almost $10.5 billion; earnings before interest, tax deductions and amortization (EBITDA) reached $855 million, an improvement of $68 million; and the company’s cash stockpile rose by $474 million, ending at more than $7.8 billion. Chrysler also retains a further $2.3 billion line of credit via government loans, which is actually hurting the company’s bottom line.
Per Marchionne, it’s the interest the company has to pay on its outstanding debt that prevented Chrysler from turning a net profit for Q1; as it stands now, the automaker showed a net loss of $172 million in the second quarter, although that number does represent a $25 million improvement as compared with Q1 of 2010.
Also notable was the fact that the financial improvements attained by Chrysler were largely based on its increased sales: The automaker sold 407,000 vehicles globally from April-June, a 22 percent jump, while its U.S. market share expanded from 9.1 percent in Q1 to 9.4 percent in the last quarter. Further, Chrysler chalked up year-over-year sales improvements in each month of the second quarter, a winning streak that continued in July.
That month found Chrysler sales moving ahead by 5 percent compared to July 2009, a result that was right in line with the industry’s overall performance. Big winners included the all-new Jeep Grand Cherokee, which drove Grand Cherokee sales up by 54 percent despite not being on sale for the whole month, and both the Dodge Journey and Dodge Challenger set July volume records.
Other notable sales stars for Chrysler in July included the Chrysler Town & Country minivan, up 18 percent; the Jeep Wrangler, with a 121 percent sales leap; the Jeep Liberty, increasing sales by 70 percent; the Dodge Challenger, which shot up 317 percent; the Dodge Nitro, advancing 96 percent; and the Ram chassis cab, which set a new monthly sales record.
Marchionne’s strategy for the rest of the year: “With most of our 16 all-new or refreshed products launching later this year, including the all-new Chrysler 300, Dodge Charger, Dodge CUV, the iconic Fiat 500, and the Chrysler Sebring replacement, Chrysler Group must continue to be rigorous, disciplined and focused on the task at hand.”
http://www.autotropolis.com/
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