Chrysler finished 2011 with a profit, its first since emerging bankruptcy
By Andrew, 01 Feb, 2012. 0 Comments
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In the fourth quarter of 2011, Chrysler Group posted a net income of $225 million as rising U.S. sales propelled the automaker to its first annual profit after having emerged from bankruptcy in 2009. In a recent report, Chrysler said that the profit in the fourth quarter reflected a $424 million swing from reporting a net loss of $199 million during the same quarter of 2010. For the entire 2011, Chrysler had a net income of $183 million during a year when it repaid its government bailout loans and taken the U.S. market share.
In comparison, the company had a net loss of $652 million in 2010. Chrysler became profitable once again based on the power of a much-enhanced product lineup, leaner production costs, and the expanding global strength of its Jeep brand and other vehicles. In the U.S. last year, Chrysler sold 1.37 million light vehicles – about 26 percent higher.
Meanwhile, the market had grown by 10 percent. Chrysler sold 1.85 million vehicles in 2011, about 22 percent higher than in 2010. The automaker sold 479,000 units during the fourth quarter, about 28 percent higher than the same period the past year. Chrysler had an annual profit even after incurring a $551 million charge in the second quarter to refinance its loans from the United States, Canada, and Ontario provincial governments. With the assistance of those loans, Chrysler emerged from a brief stint in U.S. bankruptcy court under the control of Fiat S.p.A. in June 2009. Fiat presently owns 58.5 percent of Chrysler. The revenues in the fourth-quarter increased by 41 percent to $15.1 billion. Chrysler posted revenues for 2011 of $55 billion, about 31 percent higher than in 2010.
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