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Chrysler Group Reports $690 Million Q1 Loss

Charges due to acquisition of VEBA shares put maker in red.

by on May.12, 2014

While the company posted a loss due to special charges, Chrysler's net revenue increased, in part, because of strong sales of the Jeep Cherokee.

Chrysler Group LLC today reported a net loss of $690 million for the quarter, due to special charges related to Fiat SpA’s acquisition the ownership stake in Chrysler held by the United Auto Workers VEBA.

Net revenue was $19 billion for the quarter, up 23% from $15.4 billion in the prior-year period, primarily driven by an increase in vehicle shipments, including Ram pickup trucks and the all-new Jeep Cherokee.

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Chrysler’s modified operating profit during the first quarter was $586 million, or 3.1% of net revenue, compared with the $435 million reported in the year-ago period. The 35% increase was primarily due to higher shipments and improved mix, which was partially offset by increased vehicle costs due to vehicle content enhancements; higher advertising costs; higher depreciation and amortization costs due to new product launches; and foreign exchange effects. (more…)

Chrysler Operating Earnings Could Near $2 Billion

Maker likely to report first annual net profit since 1997.

by on Jan.30, 2012

A reason to smile for Chrysler CEO Marchionne?

Borrowing the title of a ‘60s-era counterculture novel, Chrysler executives might say, “Been down so long it looks like up to me,” especially if preliminary estimates hold true on Wednesday.  That’s when the long-troubled U.S. maker plans to report its fourth quarter and full 2011 financial figures which – analysts anticipate – could see as much as $2 billion in full-year operating profits.

That would mark the first time Chrysler will have gone into the black for the full year, on an operating basis, since 1997, just before its ill-fated “merger-of-equals” with German’s Daimler AG.  Significantly, the announcement of any full-year profit would come as a stark contrast to the situation the maker found itself in less than three years ago, when it was forced to file for Chapter 11 bankruptcy protection.

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On a net basis, the maker went $42 million into the red for the first nine months of 2011 – but that figure includes $551 million in second-quarter charges resulting from CEO Sergio Marchionne’s decision to pay off Chrysler’s federal bailout loans years ahead of schedule.  Even with those charges, the smallest of the Detroit makers is expected to land in the black for the full year.


“Old” Chrysler Racks Up $10 billion in June losses

Bankruptcy reorganization again under fire.

by on Sep.04, 2009

Leaves behind $10.2 billion in losses to "Old Carco LLC."

Leaves behind $10.2 billion in losses to "Old Carco LLC."

If recent sales numbers are any indication, Chrysler Group LLC has some serious challenges ahead of it as its foreign master, Fiat, struggles to turn the U.S. carmaker into a profit-making entity.

At least Chrysler won’t have to report the $10.2 billion in losses reportedly run up by the operations it left behind as part of its bankruptcy.

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When Chrysler emerged from Chapter 11, in June, it spun off an assortment of debts and bad assets, including seven unneeded plants, were left behind, effectively spun off into a separate “old” Chrysler, Old Carco LLC, that will be closed down in the not-too-distant future.  According to a still-unaudited accounting filed with the federal bankruptcy court in New York City, that collection of bad assets rang up a whopping $10.2 billion in losses during June alone.