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29. März 2024
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Second Quarter, Makes Two in a Row
Chrysler gave its skeptics something to ponder earlier this year when the company announced it posted an operating profit in the first quarter. The American automaker has done it again in the second quarter, posting two consecutive operating profits.
The news comes from Fiat and Chrysler Group CEO Sergio Marchionne, who announced operating profit in a conference call with financial and auto analysts. Although Marchionne made the announcement about the profit, he was coy with the details, which will be revealed August 9. Chrysler's first operating profit this year was $143 million, which lessened the burden of a $197 million first quarter net loss. Although still in the red, it was substantially better than the $2.7 billion Chrysler lost in the fourth quarter of 2009.
Since taking the reins at Chrysler, Marchionne has worked to significantly reduce costs. Even as Chrysler's sales have continued to fall in the U.S., the company is losing less money. According to Marchionne, Fiat's performance in the second half of the year will be even better than the first, and a slate of new Chrysler products will help boost sales. The success of the 2011 Grand Cherokee that just hit dealerships, along with the forthcoming launch of the 2011 Chrysler 300 and Dodge Charger later this year, will ultimately tell the story.
Fiat also reported a quarterly profit yesterday of $115 million -- up from a loss of $215 million in the same period the year before.
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