Chrysler Group Q1 Net Revenues Up 35%
The increase in net revenues was primarily due to increased volumes and positive pricing and mix resulting from the successful reception of the 16 all-new or significantly refreshed products in the marketplace.
Modified operating profit was $477m for the first quarter of 2011, compared to $143m for the first quarter of 2010. The 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.
Net income was $116m for the first quarter of 2011, compared to net loss of $197m for the same period of 2010. Modified earnings before interest, taxes, depreciation and amortization (Modified EBITDA) was $1.17 billion, reflecting a $384m improvement from the first quarter of 2010.
Interest Expense in first quarter of 2011 was $348m, including non-cash interest accretion of $58m, compared to $311m, including non-cash interest accretion of $56m.
For the first quarter of 2011, cash was $9.9 billion compared to $7.3 billion at December 31, 2010, and $7.4 billion at March 31, 2010. An additional $2.3 billion remains available to be drawn under Chrysler Groupâ€™s US treasury and Canadian governmentsâ€™ loan agreements, bringing total available liquidity to $12.1 billion at March 31, 2011.
The targets for 2011 are confirmed as net revenues more than $55 billion, modified operating profit more than $2 billion, Modified EBITDA more than $4.8 billion, net income of $200m to $500m, and free cash flow more than $1 billion.
Sergio Marchionne, CEO of Chrysler Group, said: â€œChrysler Groupâ€™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. These results are a testament to the hard work and dedication of our employees, suppliers and dealers, all of whom are helping Chrysler create a new corporate culture built on the quality of our products and processes.â€
Will the firm further improve net revenues in Q2?
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