“Chrysler has announced a profit of $116 million US for the first quarter of 2011, the company’s first profit since exiting bankruptcy. This came from $13.1 billion US in revenue, which represents a 35 per cent increase compared to Q1 2010. Profit from operations was up, as well, as Chrysler managed to earn $477 million US, more than tripling the positive cash flow of Q1 2010. Sales were up 18 per cent on the quarter to 394,000 vehicles, and the automaker cites its 16 new or refreshed vehicles as reasons for the increase in revenue.
Equally exciting news comes in the form of extra security. Chrysler announced that cash reserves now total $9.9 billion US, while available United States Treasury and Canadian government loans bring total cash available to $12.1 billion US. Team Pentastar did pony up $348 million US in interest payments for its government loans in the quarter. The Auburn Hills, Michigan-based automaker is hoping to cut that number down in future quarters by paying off government loans with bank loans with smaller interest rates.
The quarterly profit has led to many smiles at Chrysler headquarters, and CEO Sergio Marchionne is one of them. “Chrysler Group’s improved sales and financial performance in the first quarter show that our rejuvenated product lineup is gaining momentum in the marketplace and resonating with customers.””