Chrysler Group LLC reached a $212 million profit in the third quarter, and this can't even be compared to the $84 million net loss the company faced during the same July-to-September period last year. The Chrysler's revenue rose 19% (to app. $13.1 billion), which was driven by demand for the new and refreshed vehicles, including the Jeep Grand Cherokee, Chrysler 300, and Dodge Journey, the company introduced for the 2011 and 2012 model years. This second quarterly profit means that Chrysler is recovering after the bankruptcy, and is heading to the first annual net profit since 2005.
The global sales of the Fiat-controlled Chrysler reached 496,000 for the 3rd quarter, which is up 24% from a year earlier. The boost allowed the company to adjust the expected net income for 2011 to $600 million, up from the previously estimated $200-500 million. Chrysler also expects to generate $1.2 billion in cash flow in 2011, up from prior guidance of $1 billion. These results will also improve overall results of Fiat, which would have reported a loss without Chrysler. Analysts, however, are not that impressed by the Chrysler's profit, and are actually alarmed by debt and cash consumption of both Fiat and Chrysler. The total debt of the Italian automaker jumped to $8.2 billion at the end of September 2011 from $3.4 billion reported in June 2011. According to Fiat, the increase of debt was caused by seasonal factors and payments to Canada and the US Treasury.
Sergio Marchionne announced that positive financial results and increased sales achieved by Chrysler go in line with the plan that was laid out in November 2009. Chief Executive also stated that the company continues to be focused on both financial performance and production of quality cars and trucks.