The First Financial Results of the New Chrysler

American manufacturer Chrysler announced yesterday the first audited financial results since in emerged from bankruptcy, for the period June 10 – December 31, 2009. The new company reported net revenues of $17.7 billion, slightly above the $17 billion target provided in November 2009. For the period, Chrysler sold 739,000 units in the US and 670,000 abroad.

The operating loss stood at $895 million, primarily, says Chrysler, the result of low sales volumes and significant start-up costs. The net loss of the carmaker amounted to $3.7 billion, reduced to $1.7 billion after excluding a non-recurring, non-cash charge of $2. billion on the UAW Retiree Medical Benefits Trust (VEBA) remeasurement.

“The steady progression of our financial results from June through December 2009 shows that Chrysler is on track to meet the ambitious, yet achievable goals announced in November," Sergio Marchionne, Chrysler CEO says in a release.

"As a result of improving trading margins, operational efficiencies and rigorous cost discipline, we continued to strengthen our cash position through 2009.”

Chrysler achieved a US market share of 8.0 percent from June 10 – December 31, 2009, with inventory levels reduced to 179,000 vehicles, or a 58 day supply.

For 2010, the group has the same targets as announced on November 4, 2009: a net revenue of $40-45 billion, an operating profit of 0.2 billion, a modified EBITDA of $2.5-2.7 billion and a negative cash flow of $1.0 billion.