Chrysler's net profit tops US$183 million
Chapter 11 and Fiat have paid dividends for the Pentastar brand2011 has been a watershed year for Chrysler in the period following its bankruptcy and acquisition by Fiat.
The third of the Detroit Big Three has reported a 'modified operating profit' of US $2 billion, of which $1.9 billion is "free cash flow". In net terms, the company has gone from an after-tax loss of $652 million in 2010 to a profit of $183 million last year. There was a challenge to overcome in the second quarter of 2011, when the company lost $551 million on "extinguishment of debt". That was partly offset in the fourth quarter by a $225 million net income (profit after tax).
Chrysler's improving financial status was largely due to increased vehicle sales worldwide, up from 1.6 million in 2010 to 2.0 million last year.
"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.”
Marchionne also heads up Fiat, which now owns 58.5 per cent of Chrysler.
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