It’s been a long road from bankruptcy protection for Chrysler Group LLC, which announced its first quarterly net income since June 2009.
Net income in Q1 2011 was $116 million compared to a net loss of $197 million in Q1 2010.
Chrysler posted a modified operating profit of $477 million in Q1 2011 (3.6 percent of net revenues) compared to $143 million (1.5 percent of net revenues) in Q1 2010.
The Q1 2011 improved operating performance was primarily attributable to increased volumes and positive pricing and mix, partially offset by increased advertising investments and industrial costs associated with the volume ramp up of newly launched models.
“Chrysler Group’s improved sales and financial performance in the first quarter show that our rejuvenated product lineup is gaining momentum in the marketplace and resonating with customers,” says Sergio Marchionne, chief executive officer, Chrysler Group LLC.
Chrysler goes on to say that worldwide vehicle sales of 394,000 in Q1 2011 represented an increase of 18 percent (60,000 vehicles) compared to 334,000 vehicles in Q1 2010.
“The improvement reflected greater availability at dealerships of the 16 all-new or significantly refreshed products launched in 2010 and was boosted by successful launch campaigns, along with an improving U.S. automotive industry,” the company says in the release.
Canadian market share increased to 14.7 percent for Q1 2011 compared to 13.7 percent for Q1 2010.
As for targets covering the rest of 2011, Chrysler is bullish, confirming it is eying net revenue of $55 billion and a modified operating profit of $2 billion.