Much-improved sales helped struggling Chrysler Group report a smaller second-quarter loss, compared to the first quarter, the automaker said Monday. A year after emerging from bankruptcy, the Auburn Hills, Mich.-based company said it lost $172 million in the three months ending June, smaller than the $197 million net loss the automaker reported in the previous quarter.

Chrysler said it sold 407,000 vehicles worldwide in the second quarter, an increase of 22% above the previous quarter. The U.S. and Canada are its primary markets. On an operating-profit basis -- earnings from its core business -- the company made $183 million, up from $143 million in the first quarter.

Second-quarter revenues rose 8.2% to $10.5 billion, compared to $9.7 billion during the first three months of the year. Chrysler didn't report earnings for the second quarter last year. The company said it lost $3.8 billion from June 10, 2009, when it exited bankruptcy, to Dec. 31.

Compared to its domestic rivals, Chrysler's latest financial results come up short. Ford Motor (F) recently posted a second quarter profit of $2.6 billion, and General Motors is expected to report a net gain Thursday.

Chrysler's Achilles' heel remains its products, many of which aren't as fresh or refined as those of its rivals. Last month, the company introduced a new version of its Jeep Grand Cherokee mid-sized SUV, but other updated products won't arrive until later in the year.

Chief Executive Sergio Marchionne expects the company will break even or possibly earn a small profit this year on revenue of $40 billion to $45 billion. Still, the company said it's "highly probable" that it will upgrade current-year earnings guidance when it releases third-quarter results. But it remains unclear when Chrysler will report a net profit.

In a statement, Marchionne said, "The second quarter operating profit confirms that Chrysler Group is on track to achieve its goals, yet an extraordinary amount of work still lies ahead."

Among highlights in the second quarter, Chrysler said it added a second shift at its Jefferson North Assembly plant in Detroit and that an assembly plant in Sterling Heights, Mich., will remain open beyond 2012. The Sterling Heights plant also added a second shift, along with 900 workers.

The company also prevailed in 70% of the cases brought before federally mandated arbitration hearings by dealers facing closure. Chrysler had sought to close 789 of its franchises to save money. About 4% of dealers rejected during bankruptcy won in arbitration, Chrysler said.

Increase your money and finance knowledge from home

What Is Your Risk Tolerance?

Answer the question "What type of investor am I?".

View Course »

Basics Of The Stock Market

Stock Market 101 - everything you need to know but were afraid to ask!

View Course »

Add a Comment

*0 / 3000 Character Maximum

11 Comments

Filter by:
ukdropout1

Fiat did not take money, They paid millions and are keeping thousands of U.S. citizens employed and employing more which shows a lot of faith in the future success of Crysler's products, and yes, fiat cars where not very good in the 70's 80's and 90's but they are very good now, Just like a lot of other car maker's(we all laughed at hyundia and kia 15 years ago) I work on cars,vans,and trucks all day long(and on both sides of the pond) and nearly all modern vehicle's are very reliable if they are looked after. Ram trucks are VERY good and the biggest problem with the cars is poor choice of interior plastics, an easy fix which I'm sure Fiat will take care of.

August 09 2010 at 8:43 PM Report abuse rate up rate down Reply
gspainting

Very happy to see GM and Ford doing better; The cars and trucks they built are better. I have a Suburban with 200,000 and still runs great. I do not think Chrysler will make it. Too Bad. Maybe Lee Ioccoca could save them; he did in the late 70s. GOD BLESS THE UNITED STATES-
One last thing People: before you go into the Toyota or a Honda go in and look at what the Amercians are offering you might be surpirsed.

August 09 2010 at 8:07 PM Report abuse rate up rate down Reply
jroberts737@aol.

did anyone believe obama when he said your warranty would be cover? since there is really no chrysler, fiat it is now, they will not cover anything. dont know about gm. but i do know, i would not buy from either of these 2 companies. a profit? how can losing millions be a profit? guess my math teachers taught me wrong in school.

August 09 2010 at 7:26 PM Report abuse +1 rate up rate down Reply
orlandcaro

Somthing tells me we are hearing from a lot of Toyota owners, and we know how good they are.

August 09 2010 at 6:48 PM Report abuse rate up rate down Reply
geraldlsolis

So Chrysler got $8 BILLION in Bailout money, which went immediately to FIAT in Italy, who recently announced THEY would open FIAT dealerships again in the US. Is anyone tracking where the $8 BILLION went? Of course not. I own a Jeep and a Dodge pick-up. My dealer will not honor my warranties because Chrysler won't pay them for warranty claim work. I heard Obama promise on national television that the US Government would pay for warranty claims. Unfortunately, he didn't give anyone an address to send the bills! So Chrysler can't even make a profit when they have $8 BILLION in FREE MONEY, they had all of their debts erased in bankruptcy, and the Government loans Chrysler all the money they need at zero interest rates. Chrysler turned their backs on their customers, their stockholders, their bondholders, their dealerships, their pensioners, and walked away from their legal and moral obligations. So you want to buy ANOTHER Chrysler?

August 09 2010 at 6:09 PM Report abuse +2 rate up rate down Reply
leftyd5244

what do you expect those cars are crap on wheels made by lasy drunk and stoned uaw workers

August 09 2010 at 5:48 PM Report abuse -4 rate up rate down Reply
jsbseven

if they are in that bad of shape sell it and cut our losses let the union fend for it self as the rest of us have to due their is no reason that we should have to pay for the union stealing their money or just wasteing it

August 09 2010 at 5:25 PM Report abuse +3 rate up rate down Reply
Jon-Michael

What is Fiat thinking? Fiat SpA should stay in Europe because they can't make it here in the US. Why I type this? I remember the Fiat Strada....

August 09 2010 at 5:23 PM Report abuse +2 rate up rate down Reply
wongtpa

Didn't Obama just tell us that Chrysler made money? Another lie or is Obama just truth challanged? Obama is qualified for only one occupation, fairytales!

August 09 2010 at 4:05 PM Report abuse +9 rate up rate down Reply
2 replies to wongtpa's comment
Jon-Michael

How does the President fit into the failings of Chrysler?

August 09 2010 at 5:25 PM Report abuse rate up rate down Reply
maclean

Its because they stand by their piece of junk they make. I have an 05 Dodge Ram 2500 that I paid almost 40 grand for. I have a 7 yr. 70,000 extended and extra paid for warranty. My motor started knocking lost oil pressure, bottom line the dealer tells me I need a new motor, now mind you I do have 76,000 miles on it in exactly 5 years, just got my title for it, gave them all my service records and they say" the guy you were bringing it to must not have been doing it right" Basicly your SOL. Hope they go out od business bunch of **** they sell and dont stand behind

August 09 2010 at 3:43 PM Report abuse +3 rate up rate down Reply
1 reply to maclean's comment
John Lamerton

Don't buy a Chrysler product without a extended waranty. Brakes, ball joints, evap coolers cat mufflers all go out before 3 years. Cat muffler is only thing paid for because of government requirement.

August 09 2010 at 5:01 PM Report abuse +4 rate up rate down Reply