USA Today
Chrysler Group still is bleeding, but says it got a whole lot healthier in the first quarter. The company today made its first report on its finances since it was created out of bankruptcy court last June 10. The company lost a staggering $3.8 billion from then through the end of the year, but reported it cut its net loss to $197 million from January through March -- and actually made money from selling cars and trucks, before interest and taxes.
The company, now run by Fiat, said it had an operating profit of $143 million in the quarter, helped particularly by truck sales. It also generated $1.5 billion in cash, padding its reserves to $7.4 billion and raising odds it can stay afloat as it replenishes the product pipeline. It predicted its operations would at least break even this year.
Chrysler made its report this morning in Michigan as Fiat began unveiling its five-year business plan in Turin, Italy. Drive On will bring you details, which should include products coming to Chrysler showrooms and plants, as they unfold. Sergio Marchionne, CEO of both, issued this statement on Chrysler: "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."
Still, there was plenty in the report to depress those of you rooting for Chrysler to make it:
Chrysler's U.S. market share grew from 8.1% in 2009 to 9.1%, but U.S. sales grew just 5% vs. growth overall in the market of 15.5%. And about 40% of Chrysler sales were lower-profit sales to rental agencies and other fleets.
Naysayers remain skeptical that the company will survive until it can replenish its aging lineup. Max Warburton, an industry analyst at Sanford C. Bernstein in England, wrote that the positive cash flow is "almost irrelevant" and "being driven by dealer restocking and stretching payables. We remain unconvinced Chrysler will survive in its current form despite Marchionne's blood, sweat and tears."
While Marchionne's cost cuts have been impressive, Warburton wrote that the company's capital investments have been minimal, and it has been arguing with parts suppliers about payments for machinery to build future products.
Marchionne took a shot at such gloom-mongers as he began his presentation in Turin today on Fiat's five-year financial plans in Turin. He compared analyst reports putting down Chrysler's operating profits to the "Boulevard press," meaning the tabloids. "As we all know, in business it is ultimately only facts that prevail," he said.
For those of you keeping score at home: Chrysler's last annual profit was in 2005, when it made $1.8 billion, and the last quarter with a profit was the second quarter of 2006, when it earned $65 million.
The company, now run by Fiat, said it had an operating profit of $143 million in the quarter, helped particularly by truck sales. It also generated $1.5 billion in cash, padding its reserves to $7.4 billion and raising odds it can stay afloat as it replenishes the product pipeline. It predicted its operations would at least break even this year.
Chrysler made its report this morning in Michigan as Fiat began unveiling its five-year business plan in Turin, Italy. Drive On will bring you details, which should include products coming to Chrysler showrooms and plants, as they unfold. Sergio Marchionne, CEO of both, issued this statement on Chrysler: "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."
Still, there was plenty in the report to depress those of you rooting for Chrysler to make it:
Chrysler's U.S. market share grew from 8.1% in 2009 to 9.1%, but U.S. sales grew just 5% vs. growth overall in the market of 15.5%. And about 40% of Chrysler sales were lower-profit sales to rental agencies and other fleets.
Naysayers remain skeptical that the company will survive until it can replenish its aging lineup. Max Warburton, an industry analyst at Sanford C. Bernstein in England, wrote that the positive cash flow is "almost irrelevant" and "being driven by dealer restocking and stretching payables. We remain unconvinced Chrysler will survive in its current form despite Marchionne's blood, sweat and tears."
While Marchionne's cost cuts have been impressive, Warburton wrote that the company's capital investments have been minimal, and it has been arguing with parts suppliers about payments for machinery to build future products.
Marchionne took a shot at such gloom-mongers as he began his presentation in Turin today on Fiat's five-year financial plans in Turin. He compared analyst reports putting down Chrysler's operating profits to the "Boulevard press," meaning the tabloids. "As we all know, in business it is ultimately only facts that prevail," he said.
For those of you keeping score at home: Chrysler's last annual profit was in 2005, when it made $1.8 billion, and the last quarter with a profit was the second quarter of 2006, when it earned $65 million.
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