Chrysler on Monday announced an operating profit of US$198m in Q4 2010 and $763m for the full year saying improved sales mix and pricing, industrial efficiencies and improved quality more than offset lower volumes, increased advertising investment and higher launch costs.
The Q4 net loss was $199m and full year net loss $652m.
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Net revenues dipped 2.3% to $10.763bn in the final quarter, compared with Q3 2010, due to reduced shipment volumes as the automaker launched production of 11 new vehicles. Full year revenues of $42bn were in line with previous guidance.
Noting Chrysler had delivered on a promise to unveil 16 substantially revised or new models, CEO Sergio Marchionne said: “Given the positive comments we have received to date, it can safely be said that what Chrysler delivered last year, on both the product and financial fronts, surpassed many expectations.
“However, our job is not yet done. We have a lot of work ahead to fulfill our five-year business plan objectives,” he added.
Modified Q4 EBITDA was $882m, or 8.2% of revenues, a $55m quarter on quarter fall. Full year EBITDA was $3.461bn, 8.3% of revenues.
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By GlobalDataChrysler said it had US$7.3bn cash at 31 December compared with $8.3bn on 30 September reflecting “unfavourable working capital impacts at the end of the year due to reduced production volumes as new vehicles were launched”.
It noted that another $2.3bn could be drawn down under Chrysler Group’s US Treasury and Canadian and Ontario government loan agreements, bringing total available liquidity above $9.6bn.
Free cash flow for the year totaled $1.4bn, over $2bn ahead of original guidance.
Gross industrial debt at year’s end was $13.1bn, an increase of $1.1bn from the end of Q3, primarily due to the issuing of promissory notes (about $1bn) to an independent health care trust in connection with transferring the responsibility for CAW retiree health care benefits from the company to the trust, which was offset by a reduction in accrued expenses and other liabilities. Debt increased $2.0bn to $5.8bn during the fourth quarter.
Worldwide vehicle sales fell 7% quarter on quarter to 374,000 units due mainly to reduced fleet volume associated with the new model changeovers in Q4. Total year 2010 worldwide sales were 1,516,000 units. US market share in 2010 was 9.2% versus 8.8% in 2009. Canadian market share increased to 13% from 11% in 2009.
Worldwide vehicle shipments in Q4 2010 were 382,000 units, off 6% versus Q3. US vehicle shipments totaled 270,000 units compared to 301,000 units in the prior quarter. Total year 2010 worldwide vehicle shipments were 1,602,000 units.
The targets for 2011 are:
- Net revenues over $55bn
- Modified operating profit over$2.0bn
- Modified EBITDA over $4.8bn
- Net income of $0.2-$0.5bn
- Positive free cash flow over $1.0bn
