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Chrysler reports $1.1 billion profit for first half of 2008

Chrysler reports $1.1 billion profit for first half of 2008

Ralph Hanson August 1st, 2008 Ralph Hanson By Ralph Hanson Author August 1st, 2008
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December 31st, 1969 Chrysler has bucked the trend of its fellow Detroit 3 carmakers by announcing an operating income of $1.1 billion for the first half of 2008. This is the first time that Chrysler has revealed its financials since being bought by Cerberus Capital Management, and comes as speculation rises that the carmaker could be on the verge of going bankrupt. Jim Press, Chrysler co-president, said the $1.1 billion was Chrysler's earnings before interest, taxes, depreciation and amortization. Chrysler also had $11.7 billion "in cash and marketable securities," he told reporters from Automotive News. The announcement came a week after Chrysler said it would pull out of leasing because its finance arm was losing so much on declining residual values for pickups and SUVs. Chrysler has also announced that it remains ahead of its turnaround target and aggressive restructuring plan, despite double-digit drops in sales for the past several months. Chrysler’s sales fell 28.8% in July compared with levels a year ago. Earlier today GM announced a massive $15.5 billion second-quarter loss for the year and earlier this month Ford announced its own $8.7 billion loss for the quarter.
Chrysler reports $1.1 billion profit for first half of 2008

Chrysler reports $1.1 billion profit for first half of 2008

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Chrysler has bucked the trend of its fellow Detroit 3 carmakers by announcing an operating income of $1.1 billion for the first half of 2008. This is the first time that Chrysler has revealed its financials since being bought by Cerberus Capital Management, and comes as speculation rises that the carmaker could be on the verge of going bankrupt.

Jim Press, Chrysler co-president, said the $1.1 billion was Chrysler's earnings before interest, taxes, depreciation and amortization. Chrysler also had $11.7 billion "in cash and marketable securities," he told reporters from Automotive News. The announcement came a week after Chrysler said it would pull out of leasing because its finance arm was losing so much on declining residual values for pickups and SUVs.

Chrysler has also announced that it remains ahead of its turnaround target and aggressive restructuring plan, despite double-digit drops in sales for the past several months. Chrysler’s sales fell 28.8% in July compared with levels a year ago.

Earlier today GM announced a massive $15.5 billion second-quarter loss for the year and earlier this month Ford announced its own $8.7 billion loss for the quarter.

Tags: Industry

Posted in: Chrysler, News


Comments (6 total)

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  1. By Roy #1, Posted: 8/2/2008

    I smell a rat.

  2. By Gus #2, Posted: 8/2/2008

    This number is BEFORE a lot of expenses, but it is still better than a negative before those expenses...

  3. By Nick #3, Posted: 8/2/2008

    this can't be right

  4. By Hammy #4, Posted: 8/2/2008

    Ofcourse its right, the challenger sales make it right.

  5. By NoNameDenton #5, Posted: 8/3/2008

    Maybe Chrysler really does have the money to make new platforms for the Avenger/Sebring twins.

  6. By NCyder #6, Posted: 8/4/2008

    If you wanna know the truth, you gotta go be an executive in their accounting department or buyout the owners. Private companies are so much fun.

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