Chrysler Turnaround Leads to $225M Gain in Quarter
DETROIT
) -- In one more sign of the U.S. auto industry's remarkable year,
Chrysler
reported Wednesday that it earned $225 million in the fourth quarter and $183 million in 2011.
The automaker, which largely had been given up for dead three years ago, reported its first full-year profit since 1997. It lost $652 million in 2010. It reported a gain despite paying $551 million to retire debt in the second quarter.
|
"The house is in good order. We are proud of the work we've done," said CEO Sergio Marchionne, in a prepared statement. "Now we greet a new year of high expectations with our heads down, forging ahead and focused on executing the goals we've set for ourselves as a company."
The Detroit Three have produced a series of stories of dramatic turnaround markers in the past few weeks.
GM
(GM) - Get Report
said last month that its global sales rose 7.6% to 9,025,942 vehicles in 2011, making it the world's leading automaker after three years in second place behind
Toyota
(TM) - Get Report
. And
Ford
(F) - Get Report
said last week that it earned $8.8 billion in 2011, excluding items, its highest annual operating profit since 1999.
Chrysler's fourth-quarter net income of $225 million was its highest quarterly net since
Fiat
took over management in 2009, lured with government loans. Fiat now owns 58.5% of the company.
Edmunds.com analyst Michelle Krebs called Chrysler "the surprising comeback kid - again.
"When Chrysler emerged from bankruptcy, there were plenty of skeptics, but the automaker has proven them wrong," Krebs said, in a prepared statement. "Since detailing its plan for the future in November 2009, Chrysler has done everything it said it would, creating an impressive recent track record and providing confidence that it will meet its 2012 goals."
Edmunds said Chrysler closed the year on a high note, as its incentive spending declined 13.3% to an average of $2,764, while its average transaction price was the highest in at least two years, and perhaps the highest ever, at $30,603 per vehicle. For the year, Chrysler's sales volume rose 26%, best among the Detroit Three.
Full-year revenue rose 31% to $55 billion, while fourth-quarter revenue rose 41% to $15.1 billion. Modified operating profit rose 250% to $2 billion, including $508 million in the fourth quarter. Full-year worldwide vehicle shipments totaled 2 million, up from 1.6 million a year earlier.
-- Written by Ted Reed in Charlotte, N.C.
>To contact the writer of this article, click here:
Ted Reed
>To follow the writer on Twitter, go to
.
>To contact the writer of this article, click here:
Ted Reed
