Chrysler posts $183M profit for 2011

Good news has been in abundant supply for the domestic automakers the last twelve months, and nowhere is that more evident than in the headline to this press release: "Chrysler Group Reports Full Year 2011 Net Income of $183 Million." Now, $183 million isn't exactly a king's ransom in the auto industry (or elsewhere – Apple made $25.92 billion last year). But if Chrysler is making money again for the first time since emerging from bankruptcy, well, perhaps the U.S. auto industry has finally recovered from 2009.

The smallest of the Big Three automakers reported sales of 1,369,114 vehicles in 2011, up 26 percent from 2010. Chrysler led all automakers in percentage sales gains last year, and finished fourth in U.S. sales, behind General Motors, Ford and Toyota. To read the full press release, click past the jump.
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Chrysler Group Reports Full Year 2011 Net Income of $183 Million

Chrysler Group's Full Year 2011 Modified Operating Profit More Than Doubled to $2 Billion With Free Cash Flow of $1.9 Billion
  • Chrysler Group full year 2011 net income improved to $183 million from a net loss of $652 million in 2010 and despite a $551 million loss on extinguishment of debt in Q2 2011; fourth quarter net income was $225 million, the highest quarterly net income since the Company began operations in 2009
  • Net revenue for the year was $55.0 billion, up 31 percent from a year ago; fourth quarter net revenue increased 41 percent to $15.1 billion
  • Modified Operating Profit(b) grew to $2.0 billion for the year, 2.5 times higher than 2010, and $508 million in the fourth quarter
  • Free Cash Flow(e) for full year 2011 totaled $1.9 billion driving Cash(d) at year end 2011 to $9.6 billion compared with $7.3 billion a year ago
  • Worldwide vehicle shipments were 2.0 million for full year 2011, up from 1.6 million a year ago
  • Chrysler Group achieved its third and final performance event in January 2012 by committing to produce its new fuel-efficient vehicle, increasing Fiat S.p.A.'s ownership interest to 58.5 percent
February 1, 2012 , Auburn Hills, Mich. - Chrysler Group LLC today reported preliminary net income of $183 million for the full year 2011, up from a net loss of $652 million a year ago, exceeding the objective set in November 2009.

The Company's full year net income included a $551 million loss on extinguishment of debt recognized in the second quarter of 2011, when the Company repaid its outstanding obligations to the U.S. Treasury and Canadian governments in full, with interest, six years early. Excluding the charge, Adjusted Net Income(a) for the full year 2011 was $734 million, exceeding the Company's 2011 guidance and further delivering on the goals established two years ago.

For the fourth quarter, net income was $225 million, up from a loss of $199 million a year earlier, as the Company continues to increase sales of its successful new and significantly refreshed vehicles.

As of January 2012, Chrysler Group has achieved all three performance events set forth in its Amended and Restated LLC Operating Agreement. As a result of achieving these events, and in combination with other transactions, Fiat S.p.A. now owns 58.5 percent of the membership interests in Chrysler Group.

"The house is in good order. We are proud of the work we've done," said Sergio Marchionne, Chairman and Chief Executive Officer of Chrysler Group LLC. "Now we greet a new year of high expectations with our heads down, forging ahead and focused on executing the goals we've set for ourselves as a company."

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