Chrysler posts net loss, boosts 2010 outlook

Chrysler posts net loss, boosts 2010 outlook

Detroit: Chrysler Group LLC posted a third-quarter net loss on Monday, but lifted its full-year outlook, spurred by results that were better than the company had forecast a year ago.

Chrysler, the US automaker managed by Fiat SpA, reported a net loss of $84 million, compared with a net loss of $172 million in the second quarter of 2010.

Excluding the cost of $308 million in interest on loans and other expenses, the company posted an operating profit of $239 million. Third-quarter revenue was about $11.02 billion.

“A year ago, Chrysler Group laid out clear and concise five-year financial goals and after three consecutive quarters of better-than-forecasted results, we are not only living up to our commitments, but we are also exceeding our 2010 financial objectives," Chrysler CEO Sergio Marchionne said in a statement.

The automaker’s results come a year after it unveiled an ambitious five-year turnaround plan during a marathon eight-hour session at its Auburn Hills, Michigan headquarters.

Chrysler now projects an operating profit of $700 million for 2010, up from its previous outlook of break-even to as much as $200 million. It sees free cash flow of $500 million, up from its previous forecast of a shortfall of $1 billion.

The automaker forecast 2010 revenue of $42 billion for the year, at the midpoint of its earlier range of $40 billion to $45 billion.

Earnings before interest, taxes, depreciation and amortization for the year is expected to be $3.3 billion, up from its earlier outlook of $2.5 billion to $2.7 billion.

Chrysler is launching 16 new and refreshed vehicles, including the 2011 Jeep Grand Cherokee and the Fiat 500, in a bid to seize market share in the United States.

The company has said it hopes to go public by the second half of 2011. Its larger rival, General Motors Co, is slated to go public later this month.