Chrysler posts $239 million operating profit, raises forecastMon, 08 Nov 2010
Chrysler Group posted an operating profit of $239 million in the third quarter and raised its outlook for the balance of the year in anticipation of stronger sales and improved operating performance.
The results, released Monday, marked the automaker's third straight operating profit. Chrysler's third-quarter net loss was $84 million, down from $172 million in the second quarter. It was Chrysler's smallest quarterly net loss since emerging from bankruptcy 17 months ago.
Revenues rose 5.2 percent to $11 billion during the July-September period.
Chrysler said it benefited from improved product mix and rising unit sales while being hurt by higher costs tied to seasonal plant changeovers.
The automaker is in the midst of launching 16 new or refreshed products over a 16-month period.
The company now expects to post an operating profit of $700 million for all of 2010, up from a previous forecast of as much as $200 million. Revenues for all of 2010 are expected to total $42 billion, within the range of $40 billion to $45 billion forecast a year ago.
In addition, Chrysler now expects to generate $500 million in positive cash flow this year, compared with negative cash flow of $1 billion previously forecast.
By David Phillips- Automotive News