AUBURN HILLS, Mich. — Chrysler Group LLC issued its financial results for the second quarter 2010.
In Q2 2010, Net Revenues increased to $10.478 billion, representing an 8.2 percent improvement over the prior quarter. First half 2010 Net Revenues totaled $20.165 billion.
The company ended Q2 2010 with an operating profit of $183 million and a first half 2010 operating profit of $326 million.
"The second quarter operating profit confirms that Chrysler Group is on track to achieve its goals, yet an extraordinary amount of work still lies ahead," said Sergio Marchionne, CEO, Chrysler Group LLC. "Customer traffic in our dealerships and confidence in the company’s future continued to grow with the launch of the all-new 2011 Jeep Grand Cherokee, one of the signature vehicles for Chrysler Group. The Grand Cherokee sets the standard for this company to produce high-quality, technologically advanced vehicles."
"2010 is seen as a year of transition and stabilization. With most of our 16 all-new or refreshed products launching later this year, including the all-new Chrysler 300, Dodge Charger, Dodge CUV, the iconic Fiat 500 and the Chrysler Sebring replacement, Chrysler Group must continue to be rigorous, disciplined and focused on the task at hand," Marchionne added.
The Q2 2010 Operating Profit improvement of $40 million, compared to Q1 2010, was driven primarily by continued volume increases. This improvement was partially offset by the impact of the Jeep Grand Cherokee changeover and moderate increases in incentive programs. Industrial costs increased due primarily to the ramp-up of ER&D expenses for the new product offensive starting in the second half of the year, partially offset by continued manufacturing efficiencies.
Modified Earnings Before Interest, Taxes, Depreciation and Amortization(Modified EBITDA) was $855 million, or 8.2 percent of Net Revenue, a $68 million increase from Q1 2010; first half 2010 Modified EBITDA was $1.642 billion.
Net Interest Expense in Q2 2010 was $296 million, including a non-cash interest accretion of $58 million. Net Interest Expense was $591 million for the first half of 2010.
Net Loss in Q2 2010 was reduced to $172 million as compared with $197 million in Q1 2010, driven by the increase in operating profit. Net Loss for first half 2010 was $369 million.
Cash at the end of June 2010 was $7.841 billion compared to $7.367 billion at the end of Q1. An additional $2.3 billion remains available to be drawn under Chrysler Group’s U.S. Treasury (UST) and Canadian and Ontario government loan agreements, bringing total available liquidity above $10 billion.
