Chrysler Group LLC Achieved $0.8 Billion in Modified Operating Profit and $1.4 Billion in Free Cash Flow in 2010, Above Recently Revised Guidance
AUBURN HILLS, Mich., Jan. 31, 2011 /PRNewswire/ —
- Net Revenues in Q4 2010 of $10.8 billion; total year 2010 Net Revenues of $41.9 billion
- Modified Operating Profit(a) of $198 million in Q4 2010; total year 2010 Modified Operating Profit of $763 million exceeded recently revised guidance
- Modified EBITDA(b) of $882 million in Q4 2010 (8.2 percent of Net Revenues); total year 2010 Modified EBITDA was $3,461 million
- Net Loss of $199 million in Q4 2010; total year Net Loss was $652 million
- Cash(c) at December 31, 2010, was $7.3 billion, bringing total available liquidity to more than $9.6 billion; Free Cash Flow(d) for 2010 was $1.4 billion, significantly above recently revised guidance
- U.S. market share for 2010 was 9.2 percent versus 8.8 percent in 2009(e); Canadian market share increased to 13.0 percent for 2010 compared to 11.0 percent in 2009
- Fiat ownership increased to 25 percent, as Chrysler Group met first of three Class B Events
- Full-year 2011 guidance is:
- Net Revenues of >$55 billion
- Modified Operating Profit of >$2.0 billion
- Modified EBITDA of >$4.8 billion
- Net Income of $0.2 – $0.5 billion
- Positive Free Cash Flow of >$1.0 billion
Chrysler Group LLC today issued its preliminary financial results for the fourth quarter (Q4) and total year 2010.
In Q4 2010, Net Revenues decreased 2.3 percent to $10,763 million, as compared to Q3 2010, primarily due to reduced shipment volumes as the Company launched production of 11 new vehicles. Total year 2010 Net Revenues were $41,946 million, in line with full year 2010 guidance.
The Company posted a Modified Operating Profit of $198 million in Q4 2010 and $763 million for total year 2010. The Q4 2010 operating performance, in comparison to Q3 2010, was driven primarily by improved mix and pricing, industrial efficiencies and improved quality, more than offset by lower volumes, increased advertising investment and higher launch costs.
CHRYSLER GROUP LLC
Modified EBITDA (1)
Modified Operating Profit (1)
(1) – A reconciliation of U.S. GAAP Net Loss to Modified Operating Profit and
Modified EBITDA for Q4 2010 and Total Year 2010 is detailed in
Table 1 of the attachment to the press release
(2) – Cash includes Cash and Cash Equivalents
“As Chrysler Group’s brand displays at the Detroit auto show confirmed, the Company has lived up to its promise to launch 16 all-new or significantly refreshed vehicles in the past 12 months,” said Sergio Marchionne, Chief Executive Officer, Chrysler Group LLC. “All of these vehicles bear testimony to Chrysler’s rebirth. 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,” said Marchionne.
Modified Earnings Before Interest, Taxes, Depreciation and Amortization (Modified EBITDA) in Q4 2010 was $882 million, or 8.2 percent of Net Revenues, a $55 million decrease from Q3 2010; total year 2010 Modified EBITDA was $3,461 million, or 8.3 percent of Net Revenues.
Net Interest Expense in Q4 2010 was $329 million, including non-cash interest accretion of $57 million. Net Interest Expense was $1,228 million for total year 2010, including non-cash interest accretion of $229 million.
Net Loss in Q4 2010 was $199 million. Total year 2010 Net Loss was $652 million.
Cash at December 31, 2010, was $7.3 billion compared to $8.3 billion at September 30, 2010. The decrease primarily reflected anticipated unfavorable working capital impacts at the end of the year due to reduced production volumes as new vehicles were launched. An additional $2.3 billion remains available to be drawn under Chrysler Group’s U.S. Treasury and Canadian and Ontario government loan agreements, bringing total available liquidity above $9.6 billion.
Free Cash Flow for the year totaled $1.4 billion, over $2 billion ahead of original guidance.
Gross Industrial Debt(f) at December 31, 2010, was $13.1 billion, an increase of $1.1 billion from September 30, 2010, primarily due to the issuance of promissory notes (totaling approximately $1 billion) to an independent Health Care Trust in connection with transferring the responsibility for certain CAW retiree health care benefits from the Company to the trust, which was offset by a reduction in Accrued Expenses and Other Liabilities. Net Industrial Debt(f) increased by $2.0 billion to $5.8 billion during Q4 2010.
Worldwide vehicle sales of 374,000 units for Q4 2010 represented a decrease of 7 percent (27,000 units) compared to 401,000 units in Q3 2010, due mainly to reduced fleet volume associated with the new model changeovers in Q4. Total year 2010 worldwide sales were 1,516,000 units. U.S. market share for full year 2010 was 9.2 percent, versus 8.8 percent in 2009. Canadian market share increased to 13 percent for full-year 2010 compared to 11 percent in 2009.
Worldwide vehicle shipments in Q4 2010 were 382,000 units, a decrease of 6 percent versus Q3 2010. U.S. 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.
Chrysler Group maintained a U.S. dealer inventory level consistent with its sales performance, increasing from 231,000 vehicles at September 30, 2010, to 236,000 vehicles at December 31, 2010. Days supply increased to 63 days from 58 days in Q3 2010, as the Company prepared for the marketing launch of its new and refreshed products.