Chrysler Group LLC is expected to post a third-quarter net loss of $129 million this Monday, its smallest quarterly loss ever since it emerged from bankruptcy protection. This figure is based on the average estimate of four analysts surveyed by Bloomberg. In the second quarter, the company had reported a $172 million loss.
This development is being seen as an indicator that Chrysler is strengthening almost 18 months after emerging from bankruptcy. In fact, Chrysler had the biggest sales gains among US automakers.
Fiat SpA was given management control of Chrysler after the government-led overhaul. Fiat also holds a 20% stake in Chrysler and if certain targets are met, it has the option of increasing that stake to 35%.
In a note to investors this week, Stuart Pearson, an industry analyst with Morgan Stanley, said that Chrysler may “prove to be one of 2011's most surprising success stories.”
He had written that he anticipates a “solid if not spectacular quarter.” Last September, Chrysler CEO Sergio Marchionne said that it expects results for the three months through September to be better than for the first two quarters of the year.
According to the average of four analysts' estimates, Chrysler's operating profit may have been $172 million. This stands for a 6% drop from $183 million in the second quarter. [via autonews - sub. required]