Tuesday, May 25, 2010
Chrysler Reports First Profit since Emerging from Bankruptcy
Earlier this month, Chrysler reported that it posted its first quarterly operating profit since emerging from bankruptcy in June 2009. During the first quarter of 2010, the auto manufacturer posted an operating profit of $143 million. Company officials have indicated that Chrysler remains on target to break even on an operating basis for the 2010 year.
While this is certainly good news for Chrysler, the auto company still faces some degree of economic hardship. They posted a net loss of $197 million for the first quarter of 2010, increasing their total loss to almost $4 billion since emerging from Chapter 11 bankruptcy last year.
However, it is important to note that Chrysler's first quarter revenue increased 3% from the final quarter of 2009, and its market share increased from 8.1% to 9.1% in the United States. Chrysler executives are confident that sales will continue to increase as they release new products in the second quarter of 2010, including the 2011 Jeep Grand Cherokee.
As part of Chrysler's emergence from bankruptcy last June, the company was purchased by the Italian auto manufacturer Fiat. It will be interesting to see how Chrysler's fortunes fare as Fiat's long term plan for the company begins to take effect over the next few years.