A large net loss despite a respectable operating profit. Get inside the numbers in this story.
Officials at Chrysler Group LLC are optimistic that they will be able to reveal improved financial forecasts by the end of the year. Executives and investors at the firm were pleased to discover that the company recorded an operating profit of $183 million for the second quarter of 2010.
Despite the gains in operating profit, a figure derived solely from Chrysler's core business and not from other activities, the third largest automaker in the U.S. actually recorded a net loss of $172 million. This is 12.7% better than Chrysler's first quarter net loss of $197 million.
No comparison to 2009 can be given as Chrysler Group LLC is just over a year old. The firm was born out of the bankruptcy restructuring of Chrysler LLC.
Improvements in operating profits were the result of added consumer interest in Chrysler vehicles following product introductions and sales incentives. Production was increased at the firm to meet the added demand.
Other figures in Chrysler's data release includes $10.5 billion in net revenue, on 407,000 car and truck sales. Still, Chrysler's near-12 percent increase in U.S. vehicle deliveries is far short of the 16.7 percent increase seen industry wide.
"Chrysler Group must continue to be rigorous, disciplined and focused on the task at hand," Chrysler and Fiat CEO Sergio Marchionne said in a company statement. He acknowledged that for Chrysler to get back to its glory days, "an extraordinary amount of work still lies ahead."