During the fourth quarter, Chrysler saw a net loss of $199 million – the largest of the year. Even so, Chrysler says that it expects good things from 2011. The automaker has made it clear that it plans to see significantly improved figures in coming months. With an arsenal of new and refreshed models in showrooms right now and an improved buying forecast here in the states, Chrysler expects to see net profits of $200-500 million for 2011 and total revenues in the area of $55 billion.
According to Chrysler CEO Sergio Marchionne, the automaker has been unable to post a net profit thus far due to high interest payments on federal loans. Throughout last year, the company paid a total of $1.3 billion in interest, according to Automotive News. Click past the jump for the full press release.
[Sources: Chrysler, Automotive News – sub. req. | Image: Drew Phillips/AOL]
• Net Revenues in Q4 2010 of $10.8 billion; total year 2010 Net Revenues of $41.9 billion
• Modified Operating Profit of $198 million in Q4 2010; total year 2010 Modified Operating Profit of $763 million exceeded recently revised guidance
• Net Loss of $199 million in Q4 2010; total year Net Loss was $652 million
• Cash at December 31, 2010 was $7.3 billion, bringing total available liquidity to more than $9.6 billion; Free Cash Flow for 2010 was $1.4 billion, significantly above recently revised guidance
• Company provides full-year 2011 guidance
January 31, 2011 , Auburn Hills, Mich. -
Chrysler Group LLC today issued its preliminary financial results for the fourth quarter (Q4) and total year 2010.
The Company posted a Modified Operating Profit of $198 million in Q4 2010 and $763 million for total year 2010. The Q4 2010 operating performance, in comparison to Q3 2010, was driven primarily by improved mix and pricing, industrial efficiencies and improved quality, more than offset by lower volumes, increased advertising investment and higher launch costs.
Sergio Marchionne, Chief Executive Officer of Chrysler Group LLC stated, "As Chrysler Group's brand displays at the Detroit auto show confirmed, the Company has lived up to its promise to launch 16 all-new or significantly refreshed vehicles in the past 12 months. All of these vehicles bear testimony to Chrysler's rebirth. Given the positive comments we have received to date, it can safely be said that what Chrysler delivered last year, on both the product and financial fronts, surpassed many expectations.
"However, our job is not yet done. We have a lot of work ahead to fulfill our five-year business plan objectives," said Marchionne.