Fw: Chrysler Group 2009 and Q1 2010 Financial Results

----- Forwarded by Calvin R Thudium/CARZ/DCC/DCX on 04/22/2010 11:19 AM -----

Chrysler Comm 04/21/2010 04:42 AM

To Chrysler Employees and Contractors cc Subject Chrysler Group 2009 and Q1 2010 Financial Results

Dear Colleagues,

Chrysler Group LLC today published financial results for the first time since beginning operations last June and I would like to share some highlights with you.  The most encouraging news is that Chrysler ended the first quarter of 2010 with a positive operating profit of $143 million – tangible evidence that we are achieving the targets that we set for ourselves and announced publicly last November – and liquidity of $9.8 billion.

The operating profit marked an improvement of $410 million compared to the fourth quarter of 2009.  Major factors included continued price discipline on all products and some improvement in sales mix, the result of the launch of the all-new Ram Heavy Duty pickup, the Motor Trend “Truck of the Year.”  Our efforts to reduce costs also are taking hold, thanks to improvements on the cost side from the World Class Manufacturing implementation, a more stable supplier environment and strict control of discretionary spending.  The company’s net loss in the first quarter was reduced to $197 million.  

Our first-quarter results show we are generating the cash needed to build our brands and invest in products, such as the 16 all-new or refreshed vehicles that will be introduced by the end of this year, representing 75 percent of our product line.  Modified Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) were $787 million, compared to $398 million in last year’s fourth quarter.  Our cash position strengthened to nearly $7.4 billion as a result of a strong cash flow of about $1.5 billion in the first quarter, as noted bringing our total available liquidity to $9.8 billion.

Worldwide vehicle sales were 334,000 units for Q1 2010, compared to 318,000 in Q4 2009.  This resulted in market share gains from 8.1 percent to 9.1 percent in the U.S., and from 11.6 percent to 13.7 percent in Canada, on a quarter-to-quarter basis.

For the June 10 – December 31, 2009 period, net revenues were $17.7 billion, including $9.4 billion in the fourth quarter.  Operating loss for the period was $895 million.  Modified EBITDA was $538 million and cash at the end of 2009 was $5.9 billion, with both results exceeding our targets announced last November.  For the 2009 reporting period, net loss was approximately $3.8 billion, reduced to $1.7 billion excluding a non-recurring, non-cash charge of $2.1 billion relating to the UAW Retiree Medical Benefits Trust (VEBA).

While we still have a long way to go to rebuild our business, it is important to note that we are on track to achieve our 2010 targets. Today’s announcements are important milestones and a credit to the efforts of the entire organization.  

I want to thank you personally for your efforts and dedication to Chrysler.  We shall not fail as long as we remain focused and committed to our goals.

Best regards
Sergio Marchionne


http://scoop.chrysler.com/2010/04/21/chrysler-group-reports-2009-financial-results/

http://scoop.chrysler.com/2010/04/21/chrysler-group-reports-results-for-2010-first-quarter/