Third quarter results for Chrysler Group LLC show promise of a return to an operating profit for the full year -- ahead of targets set by management and a significant continued increase in performances during the first part of the year.
Current indications are the company, under the guidance of CEO and former Fiat chief Sergio Marchionne, will rake up an operating profit of US$0.7 billion for the full 2010 calendar year, a jump from the US$0 billion to US-$0.2 billion guidance figure issued earlier.
The third quarter result gave Chrysler a US$239 million operating profit for the period, helping lower the US$172 million net loss in the second quarter to a net loss of US$84 million.
Net revenues for the third quarter were US$11 billion, up 5.2 per cent from second-quarter revenues.
A positive cash flow of US$419 million helped strengthen the company’s cash position at the end of September to US$8.3 billion.
According to Marchionne "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."
Marchionne said the turnaround is product-driven. He says that over a period of 16 months, Chrysler will be launching 16 new or updated models. These will be led by the 2011 Jeep Grand Cherokee and will include the return to the US and Canada of the Fiat brand, in the shape of the new 500 model.
Beleaguered Chrysler's bonding with the Italian company Fiat was agreed in June 2009 and got properly under way in July when a new board, with Marchionne as CEO, was formed.
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