White House confirms Chrysler will file for bankruptcy

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Chrysler posts $A4.08 bln post-bankruptcy loss in 2009
April 22, 2010 - 7:04AM

Chrysler posted a post-bankruptcy 2009 loss of $US3.8 billion ($A4.08 billion) Wednesday, but said it had exceeded financial targets and achieved an operating profit in the first quarter of 2010.

"The steady progression of our financial results from June through December 2009 shows that Chrysler is on track to meet the ambitious, yet achievable goals announced in November," said Sergio Marchionne, chief executive officer Chrysler Group LLC.

The $US3.8 billion ($A4.08 billion) net loss for the period of June 10 through December 31 included a nearly $US2.1 billion ($A2.25 billion) non-recurring loss related to retiree health care benefits.

In its first post-bankruptcy results, the number three US automaker reported modified earnings before interest, taxes, depreciation and amortisation of $US538 million ($A577.56 million) for 2009 and ended the year with $US5.9 billion ($A6.33 billion) in cash.

"As a result of improving trading margins, operational efficiencies and rigorous cost discipline, we continued to strengthen our cash position through 2009," Marchionne said in a statement.

Chrysler posted a first quarter operating profits of $US143 million ($A153.52 million) and its net loss narrowed to $US197 million ($A211.49 million) from $US2.5 billion ($A2.68 billion) a year earlier.

"This positive operating result in the first quarter is a concrete indication to our customers, dealers and suppliers that the 2010 targets we have set for ourselves are achievable, Marchionne said.

"We are also generating cash to finance the investments being made in our product portfolio and brand repositioning."

AFP