Embattled US car maker Chrysler narrowed its losses in 2010 and predicted a return to profit this year as it prepares to return to public trading.
A year and a half after emerging from a government-supported bankruptcy reorganisation, Chrysler Group reported a net loss of $652m for all of last year, compared with a $3.8 billion loss in 2009.
In the fourth quarter, the Chrysler said it shed $199m, slightly worse than the $197m loss the same time a year ago. But on an adjusted operating profit level, the Michigan-based car maker said it returned to profit of $763m for the full year and $198m in the final quarter.
Chrysler noted the operating profits came in higher than its recent forecast, attributing the improvement to a better mix and pricing of vehicles, and improved efficiencies and quality.
For all of 2010, net revenues rose to $41.9 billion, while fourth-quarter revenues fell 2.3% from the third quarter to $10.8 billion as the company launched production of 11 new vehicles.
'The company has lived up to its promise to launch 16 all-new or significantly refreshed vehicles in the past 12 months,' Sergio Marchionne, Chrysler's chief executive, said.
Chrysler said it was raising its full-year 2011 target to $200-500m net income on net revenues of more than $55 billion. The taxpayer-funded company is expected to launch an initial public stock offering in the second half of 2011.
Italy's Fiat increased its ownership of Chrysler to 25% earlier this month and said it may boost its holding to 51% before the IPO, which would help the US government wind down its 8% stake in the smallest of the US Big Three car makers.
