Wednesday, March 9, 2011

Chrysler projects profitable 2011 before the IPO


DETROIT - Chrysler Group LLC, which manages projected automaker Fiat SpA, its sales by a third in 2011, surpassing profits from the industry in a rebounding will grow market on the strength of the revised models.

Fiat two milestones in Chrysler's expected to clear turnaround that a majority stake in number 3 of US car manufacturers negotiated this year under the terms of a bailout could take it with the U.S. Treasury in 2009.


Chrysler is racing expects to refinance its bailout loans before the initial public offering of stock in the second half of this year. The IPO is bankruptcy filing and almost collapse a key element of the recovery plan automakers after his 2009.


"2011 must be characterized as the year of implementation," Chief Executive Sergio Marchionne told analysts and reporters during a Conference. "We need to the run what we promised to do."


Fiat won about 1.5 percent share.


Chrysler now projected 25% owned by Fiat, is 2 million cars and trucks sell worldwide in 2011, up from something more than 1.5 million sales in 2010.


The 2011 sales projection is lower than the forecast of 2.2 million Chrysler in November during a presentation of its five-year turnaround plan.


But costs less than expected the company with 2 million vehicles in global sales post will allow a profit, said executives. In his plan expected Chrysler first also to 2 million vehicle sales to break.


The automakers forecast net income between $200 million and $500 million for 2011. Marchionne said Chrysler a "few" quarter net income before an IPO must report.


The company expects to jump revenue by almost a third to $55 billion in 2011. He predicts an operating profit of around $2 billion a year.


Chrysler predicts a nearly 10 percent profit in the industry-wide U.S. car sales in the year 2011, an Outlook Marchionne conservative means.


WISH XMAS


As part of a business with U.S. Treasury signed, Fiat can increase its stake in Chrysler if it developed meets three tests, to make the Chrysler on firmer footing.


Chrysler Chief Financial Officer Richard Palmer said the company meet all tests of the second half of this year would bring Fiat 35 percent ownership.


Fiat accounted for 51 percent of the company takes if Fiat will pay their loans for the US Government back. During the conversation Marchionne described as his "wish Christmas day".


Loans from the U.S. and Canadian governments carry high interest rates that profitability undercutting Chrysler over the past few quarters. The company paid $1.23 billion for the interest in 2010.


Chrysler said it needs to refinance these loans before a public offering. During the conversation, Marchionne said discussions with financial advisors suggest its interest rates could be "significantly" lower.


Marchionne said Chrysler 3.5 billion dollars in subsidized loans from the U.S. Department of energy was looking for. Chrysler larger rival General Motors co. said last week that it no longer sought that low-interest loans.


"I have the arrogance nor cash of every contempt of DOE process to show," Marchionne said.


Chrysler said its application with the Department of energy-issues of securities was stuck had.


Marchionne said talks relating to both the Department of energy and the Treasury were ongoing.


FEWER FLEET SALES


Chrysler, separately, it said bonuses employees represented by trade unions in the United States and Canada next week on the basis of more than financial targets would dole.


Marchionne would declined to say how great the employee bonuses. Ford Motor Co. said last week, an average premium of $5,000, factory workers, represented by the United Auto workers it would pay.


For the fourth quarter Chrysler reported an operating profit of $ 198 million from high interest expense stripping. 14 Percent compared with the previous year was $10.76 billion, sales in the fourth quarter.


The key to Chrysler revival is the commercial success of 16 new and revised models, including the 2011 Jeep Grand Cherokee and the Chrysler 300 sedan, executives and analysts have said.


Chrysler has criticised because of its reliance on bulk sale rental agencies, Governments and businesses. These sales are generally less profitable than selling to consumers.


But fleet sales fell in the fourth quarter in the third quarter of 2010 and the same period, according to Chrysler and industry Tracker TrueCar.com to.


Retail sales to consumers are portfolio 2011 due to the aufpoliert-Up Chrysler vehicle, jump, IHS Automotive Analyst Rebecca Lindland said.


"See from a long-term investor point, banks, their debt to refinance that prefer a higher rate of retail," said Lindland.


Copyright 2011 Thomson Reuters.

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