• Nov 8, 2010
Chrysler has announced a third-quarter operating profit of $239 million thanks to a 5.2-percent increase in revenue between July and September. That put the smallest of the Big Three's revenue at $11 billion. That put the company's net loss at $82 million, an improvement from the $172 million net loss recorded in Q2. As a result, Chrysler has adjusted its 2010 financial outlook, saying that it should be able to post an annual operating profit of $700 million for 2010, besting previous estimates by around $500 million. But most importantly, Chrysler says it will generate around $500 million in positive cash flow by the end of 2010. Forecasters originally had the company suffering a negative cash flow of $1 billion.

The turnaround is largely due to a rash of new products from Chrysler. The automaker is knee-deep in a campaign to launch 16 new or significantly rehashed models in as many months, and after a long period of model stagnation, fans of the brand are beginning to respond. The company has seen sales jump by 20 percent in the third quarter in the U.S., according to Automotive News. Hit the jump for Chrysler's official press release.

[Sources: Chrysler, Automotive News | Image: AP Photo / Wilfredo Lee]


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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.

"Chrysler's financial success is dependent upon the vehicles we design, build and sell. 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," Marchionne added.


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  • 30 Comments
      • 4 Years Ago
      Great news indeed! Sergio please oh please put a rush on the Jeep Gladiator concept and please make the Diesel option available to the US buyers and I will have another Chrysler product too add to my already growing library of Chrysler vehicles. Keep up the GREAT work Chrysler/Fiat!!!!
      • 4 Years Ago
      Kudos, compliments and a tip o' the hat to all the folks over at Pentastarland.
      • 4 Years Ago
      @gua: Then may I suggest reading Chrysler's business plan from November 2009? Information regarding the fuel economy issues may be found there.

      Chrysler 5-year Business Plan
      http://www.chryslergroupllc.com/business/
      • 4 Years Ago
      I'm sure I'm not the only one wondering where all this profit is coming from these days. it HAS to be cost cutting because down here in Tampa Bay we're not seeing any big rush of Chrysler products on the road with the exception of a few Challengers here and there. I probably see more early 90's Intrepids and minivans than anything..... THAT'S it.... the profits are coming from the service departments! P.S. If the only thing really NEW to hit these shores is a Fiat 500 besides a rehashed Sebring or two, I think a two year wait for REALLY new products might do these guys in for good.
        • 4 Years Ago
        Thank you for your insight SirBallBuster. Personally, I would think a metropolitan area in Florida would better represent Chrysler's demographic versus California for example, which would be more trendier....but I in no way meant to imply one area represents the WHOLE country. I was just stating what we see here which is primarily their products flooding the tourist rental car market.
        • 4 Years Ago
        yes, because one city represents Chrysler's sales all over the nation....

        /sarcasm
      • 4 Years Ago
      So who are all the customers lining up for new Chryslers? Almost everything in their lineup is outclassed by the competition, aside from a few mid-to-high-end offerings like the new Grand Cherokee. Seriously - who gets into a Caliber and without being handed a bagful of incentive cash says "wow, the quality and detail in here is excellent - and I love that 'mooo' sound the CVT makes when I attempt to accelerate". When you press the accelerator in a Caliber, it literally sounds like the cow noise on those little kids books that have the digital sound effects along the side.
        • 4 Years Ago
        Don't live in the past. The Caliber got a major interior refresh. Next will be redone I4's and maybe just maybe a ditching of the CVT. I did rent the old Caliber and I don't remember the tranny going "moo", but then I don't floor the pedal in a rental car while driving in NJ traffic either. My biggest complaint other than the old interior was the tunnel vision because of the slanted A pillars, but that is common on a lot of cars now and will only get worse because of fuel economy regs.
      • 4 Years Ago
      GO MOPAR!!!!
        • 4 Years Ago
        @Greenthumb: Based on your post above, we find it hard to imagine that you could have been more obnoxious or ignorant than you demonstrate yourself to be today.
        • 4 Years Ago
        It's all about the trend line my friend. And that trend line is definitely going UP. They are losing less and less, and making more and more sales. I would be concerned if they had nothing in the pipeline, but they have a lot in the pipeline. Everyone has seen the improvements in the interiors, the new V6, the refreshed models, the new 6-8 speed transmissions. When the other new models come out and the 4 cylinder improvements come (just search "tiger shark" on Allpar.com) they will be making a lot of $.
      • 4 Years Ago
      GREAT NEWS!!! But I dont see how the turn around is due to a bunch of new products. The only new product out currently is the JGC, and its only a couple of months old.
        • 4 Years Ago
        Analysts can rationalize anything.
        • 4 Years Ago
        The spin is 'new products' but more likely that Chrysler was able to cut the dead weight of sub-par dealers.
      • 4 Years Ago
      "Chrysler posted $453 million in net losses on revenues of $31 billion during the first three quarters of the year."

      Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20101108/OEM/101109849/1250#ixzz14lUqlCUA
      • 4 Years Ago
      great news but I fail to see how your analysis of new models many of which have not even hit being largely responsible for the turnaround which has been in full swing all year.

      THe y have done a great job obviously of getting costs under control.
      • 4 Years Ago
      What is that an interior of? It doesn't look like a Chrysler.
      • 4 Years Ago
      well thank goodness your insight is worthless to the world, and Chrysler.

      • 4 Years Ago
      The new Grand Cherokee seems to be a runaway success.
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