Solid showing for Chrysler in Q1

By Liam Orlita

After releasing its first quarter financial results today, Chrysler Group LLC seems to be poised for a 2010 comeback.

News out of Auburn Hills today shows the automaker posted net revenues of CDN$9,649 million and an operating profit of more than $142 million, just a little less than a year after seeking bankruptcy protection in the United States.

“This positive operating result in the first quarter is a concrete indication to our customers, dealers and suppliers that the 2010 targets we have set for ourselves are achievable,” Sergio Marchionne, Chrysler Group LLC CEO said in a release.

“We are also generating cash to finance the investments being made in our product portfolio and brand repositioning,”

Chrysler’s worldwide vehicles sales rose 3 per cent to 334,000 units – a jump from 318,000 in the previous quarter.

The company points to growth in its North American market share as part of the reason for the boost in volume.

Chrysler’s U.S. operations enjoyed an increase to 9.1 per cent from 8.1 in Q4 2009. Canadian operations experienced an even larger jump moving from 11.6 per cent to 13.7 per cent over the same period.

Chrysler’s worldwide vehicle shipments in Q1 were lifted by 3 per cent, raising the tally to 380,000.

Today’s results indicate the company is on track to achieve its goals for 2010. Announced last November, the automaker revealed a series of financial targets it hoped to meet by the end of this year.

They included: (all figures U.S.)
- Net revenues of $40 – 45 billion
- Operating profit of $0.0 – $2 billion
- Modified EBITDA of $2.5 – 2.7 billion
- Negative free cash flow of $1.0 billion
 
Chrysler plans to host an analyst conference call to discuss its Q1 performance on May 10.