Chrysler Posts Fourth Quarter Loss, But Still Projects Profit for 2011
Hit by fewer fleet sales and high interest on government loans, Chrysler posted a $199 million operating loss in it’s fourth quarter of 2010, despite generating earnings of $10.76 billion.
However, not factoring the interest on the loans from the US and Canadian governments , the company actually recorded an operating profit of $198 million in the same period.
During the course of 2010 Chrysler produced some 1.5 million vehicles, thanks to multiple new or revised product introductions and generated $42 billion in revenue, including $763 million in operating profit, in line with projected estimates for the year.
In 2011, the company hopes to go public once again, though CEO Sergio Marchionne has stated that Chrysler, which is 25 percent owned by Fiat; must report at least a ‘couple’ of quarters of net income before an Initial Public Offering of shares can be issued. In addition, in order to issue an IPO, the company has to refinance its government loans to reduce interest on the debt owned.
Chrysler has said it expects 2011 revenue to increase by nearly a third, to $55 billion, with projected net income between $200 and $500. If those targets are met, then it’s highly likely, Chrysler stock will become publicly traded once again before the end of the year.
The company also said that it plans to achieve more 13 percent US market share by 2014; currently it stands at 9.2 percent, up from 8.8 in 2009.
[Source: msnbc.com]
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