Chrysler turns profit two years after bankruptcy filing
After filing for bankruptcy two years ago, Chrysler has finally turned a profit of a net income of $116 million and a revenue of $13.1 billion in its 1Q 2011. The numbers released today is a milestone in the company’s history after its bankruptcy. Chrysler’s sales rose 18 percent globally in the first three months of 2011; the last time Chrysler posted a net profit was back in 2006. New vehicle products and increase in sales is just another sign that the economy is getting back into the black.
According to an article on Fox News:
“Chrysler's return to profitability is also another chapter in the comeback of the Detroit Three automakers. General Motors Co., which also went into bankruptcy in 2009 and took government loans, has reported a string of profitable quarters and held an initial public offering in November. Ford Motor Co., which didn't take bailout money but nearly had to file for bankruptcy five years ago, reported its eighth consecutive quarterly profit last week.”
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"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," Chrysler CEO Sergio Marchionne said in a statement.
The article also says that its Jeep Grand Cherokee SUV assisted in revamping the business and made for a 64 percent increase and the Chrysler 200 sedan quadrupled its sales. Considering Chrysler is still licking its wounds from filing, the company still plans for an IPO in the next year. As long as Chrysler continues to see profits, investors will definitely be interested in pursuing stock.
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