Detroit – Chrysler Group LLC today issued its financial results for the second quarter 2010.
Chrysler announced earlier today that in Q2 2010, Net Revenues increased to $10,478 million representing an 8.2 percent improvement over the prior quarter. First half 2010 Net Revenues totaled $20,165 million.
The Company ended Q2 2010 with an Operating Profit(a) of $183 million and a first half 2010 Operating Profit of $326 million.
“The second quarter operating profit confirms that Chrysler Group is on track to achieve its goals, yet an extraordinary amount of work still lies ahead,” said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC. “Customer traffic in our dealerships and confidence in the Company’s future continued to grow with the launch of the all-new 2011 Jeep® Grand Cherokee, one of the signature vehicles for Chrysler Group. The Grand Cherokee sets the standard for this Company to produce high quality, technologically advanced vehicles.
“2010 is seen as a year of transition and stabilization. With most of our 16 all-new or refreshed products launching later this year, including the all-new Chrysler 300, Dodge Charger, Dodge CUV, the iconic Fiat 500, and the Chrysler Sebring replacement, Chrysler Group must continue to be rigorous, disciplined and focused on the task at hand,” Marchionne said.
The Q2 2010 Operating Profit improvement of $40 million, compared to Q1 2010, was driven primarily by continued volume increases. This improvement was partially offset by the impact of the Jeep Grand Cherokee changeover and moderate increases in incentive programs. Industrial costs increased due primarily to the ramp-up of ER&D expenses for the new product offensive starting in the second half of the year, partially offset by continued manufacturing efficiencies.
Revenue rose 8.2 percent from the first quarter to $10.48 billion. Results in the years before Chrysler’s April 2009 bankruptcy filing are not public.
Chrysler increased its cash reserves by $400 million to $7.8 billion. Net debt was $3.4 billion, including owed $5.7 billion to the American government and $1.2 billion owed to Canada.
Chrysler is the only one of the three Detroit automakers still showing net losses but attributes this to the interest being paid on recent government loans.
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