Chrysler earns first annual profit in...

Chrysler earns first annual profit in more than a decade

There are 21 comments on the www.latimes.com story from Feb 1, 2012, titled Chrysler earns first annual profit in more than a decade. In it, www.latimes.com reports that:

$183 million last year,

Sales rose 31% to $55 billion.

Chrysler Group earned its first annual profit as an independent company since 1997, a sign that the Detroit automaker is recovering from its bankruptcy reorganization and the conflicting strategies of its recent owners.

Chrysler said it earned $183 million last year, compared with a loss of $652 million in the prior year. Sales rose 31% to $55 billion. "The house is in good order. We are proud of the work we've done," said Sergio Marchionne, who is chief executive of Chrysler and Fiat, the Italian automaker that owns a controlling interest in the company.

Join the discussion below, or Read more at www.latimes.com.

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“Kiss Me You Fool!”

Since: Jan 08

Atlanta via Brooklyn NY

#1 Feb 1, 2012
And they paid back all 7.6 billion in bail out funds way back in May of 2011. Another saving of jobs that will never be added onto the jobs save/created by Pres. Obama.

Imagine losing all the jobs and businesses that support GM and Chrysler?

Imagine not having American auto manufacturing?

Imagine not being able to respond, like we did during WWII, to the need to rapidly build tanks and other military vehicles. During WWI we quickly revamped our auto assembly lines to military vehicles military lines.

Imagine if Romney was President, and he would have let GM and Chrysler go under?

If we're wiling to invest so much in Iraq. Why not be willing to invest just as much, if not more, in the U.S.?

Thank you President Obama
BandMaster

Since: Sep 11

Location hidden

#3 Feb 1, 2012
Who cares? The Italians own them anyway...sort of.
.
Obama likes the failed, obsolete, European socialist economic model. Is he nuts or just doesn't know about Europe yet?
Would somebody please buy him a TV.

“Kiss Me You Fool!”

Since: Jan 08

Atlanta via Brooklyn NY

#4 Feb 1, 2012
BandMaster wrote:
Who cares? The Italians own them anyway...sort of.
.
Obama likes the failed, obsolete, European socialist economic model. Is he nuts or just doesn't know about Europe yet?
Would somebody please buy him a TV.
Sounds like you did when you want to complain about jobs being lost. Why wouldn't you care that a American company that support so many jobs and small businesses remains intact. Something that would not have happened if Mitt was President.
Lance Winslow

United States

#5 Feb 1, 2012
BandMaster wrote:
Who cares? The Italians own them anyway...sort of.
.
Obama likes the failed, obsolete, European socialist economic model. Is he nuts or just doesn't know about Europe yet?
Would somebody please buy him a TV.
American workers care and we vote.
Justin

Richmond, VA

#6 Feb 1, 2012
Chrysler may have paid back the Fed, but has the Fed payed back China?

“i hope we can change this!”

Since: Aug 08

usa

#7 Feb 1, 2012
OneRyder wrote:
And they paid back all 7.6 billion in bail out funds way back in May of 2011. Another saving of jobs that will never be added onto the jobs save/created by Pres. Obama.
Imagine losing all the jobs and businesses that support GM and Chrysler?
Imagine not having American auto manufacturing?
Imagine not being able to respond, like we did during WWII, to the need to rapidly build tanks and other military vehicles. During WWI we quickly revamped our auto assembly lines to military vehicles military lines.
Imagine if Romney was President, and he would have let GM and Chrysler go under?
If we're wiling to invest so much in Iraq. Why not be willing to invest just as much, if not more, in the U.S.?
Thank you President Obama
and HOW many jobs were lost? HOW many dealerships were FORCED to close? HOW many bondholders got fcked?
bankrupcy would have had the same results, without a bailout.

“Kiss Me You Fool!”

Since: Jan 08

Atlanta via Brooklyn NY

#8 Feb 1, 2012
carey529 wrote:
<quoted text>
and HOW many jobs were lost? HOW many dealerships were FORCED to close? HOW many bondholders got fcked?
bankrupcy would have had the same results, without a bailout.
You tell me genius.

Show us how the bailout during bankruptcy didn't help at all.

You're just flaying away, no numbers, no facts.

You sound like Romney, who admits the economy is getting better under Pres. Obama, but "it would have gotten better faster under me". Silly

“Kiss Me You Fool!”

Since: Jan 08

Atlanta via Brooklyn NY

#9 Feb 1, 2012
Justin wrote:
Chrysler may have paid back the Fed, but has the Fed payed back China?
Probably not. we're still paying China (with interest) for the loans needed so we can nation-build in Iraq. We had no money, but repubs were ok with borrowing so we can liberate Muslims in Iraq. Muslims who hate the U.S.

Anyone remember the "waaah...waaah..Saddam is killing his own people" chant?

“It's a Brand New Day”

Since: Feb 06

New Rochelle

#10 Feb 1, 2012
OneRyder wrote:
And they paid back all 7.6 billion in bail out funds way back in May of 2011. Another saving of jobs that will never be added onto the jobs save/created by Pres. Obama.
Imagine losing all the jobs and businesses that support GM and Chrysler?
Imagine not having American auto manufacturing?
Imagine not being able to respond, like we did during WWII, to the need to rapidly build tanks and other military vehicles. During WWI we quickly revamped our auto assembly lines to military vehicles military lines.
Imagine if Romney was President, and he would have let GM and Chrysler go under?
If we're wiling to invest so much in Iraq. Why not be willing to invest just as much, if not more, in the U.S.?
Thank you President Obama
Romney would just say ~" some jobs just must go away..."~
Justin

Richmond, VA

#11 Feb 1, 2012
OneRyder wrote:
<quoted text>
Probably not. we're still paying China (with interest) for the loans needed so we can nation-build in Iraq. We had no money, but repubs were ok with borrowing so we can liberate Muslims in Iraq. Muslims who hate the U.S.
Anyone remember the "waaah...waaah..Saddam is killing his own people" chant?
Who borrowed the money? The Democrats controlled the House for most of that time period. It's not as if president Bush sat in the Oval Office all day signing purchase orders and applying for credit cards. It was also mostly Democrats legislators (including a young prototype politician named Obama) who signed off on the Wall Street bailout. The whole idea that "Bush was sitting in office when the money was spent, so he's the one who spent it." illustrates a lack of accountability.

“i hope we can change this!”

Since: Aug 08

usa

#12 Feb 1, 2012
OneRyder wrote:
<quoted text>
You tell me genius.
Show us how the bailout during bankruptcy didn't help at all.
You're just flaying away, no numbers, no facts.
You sound like Romney, who admits the economy is getting better under Pres. Obama, but "it would have gotten better faster under me". Silly
i posted just as many facts as you did, genius.
Crack Head

Maple Heights, OH

#13 Feb 1, 2012
OneRyder wrote:
And they paid back all 7.6 billion in bail out funds way back in May of 2011.
Only one little problem, THEY GOT $13 Billion in loans!!!!
Crack Head

Maple Heights, OH

#14 Feb 1, 2012
Oh, and forgot to mention $3.5 Billion of the $7.6 Billion they paid back, WAS ANOTHER LOAN FROM TAXPAYERS!!!!!!

http://washingtonexaminer.com/blogs/beltway-c...
Crack Head

Maple Heights, OH

#15 Feb 1, 2012
OneRyder wrote:
<quoted text>

Anyone remember the "waaah...waaah..Saddam is killing his own people" chant?
Would that be like"waaah...waaah.. Gaddafi is/was killing his people in Libya from Owebama???
Justin

Richmond, VA

#16 Feb 1, 2012
OneRyder wrote:
And they paid back all 7.6 billion in bail out funds way back in May of 2011. Another saving of jobs that will never be added onto the jobs save/created by Pres. Obama.
Imagine losing all the jobs and businesses that support GM and Chrysler?
Imagine not having American auto manufacturing?
Imagine not being able to respond, like we did during WWII, to the need to rapidly build tanks and other military vehicles. During WWI we quickly revamped our auto assembly lines to military vehicles military lines.
Imagine if Romney was President, and he would have let GM and Chrysler go under?
If we're wiling to invest so much in Iraq. Why not be willing to invest just as much, if not more, in the U.S.?
Thank you President Obama
But what exactly does it mean to "go under"?

I think we humans generally tend to underestimate the potential risks when times are good, but we also grossly exaggerate the consequences of a worst probably scenario when times are bad.

Had the government not intervened, the lights at GM and Chrysler would have been out for a few weeks or months, but [they would still be rolling cars off the assembly line today]. Someone would have bought them out on the cheap, and the only difference is that the teamsters would have lost their negotiated salaries, benefits, and maybe their jobs. However, a bunch of other folks would have gained a new job in their place, even if for less pay. The union would eventually have brought the new guys into the fold and re-negotiated their salaries. Life would have gone on. Just one more bump in the road.
Just think about all the businesses and factories that were destroyed during WW2. I'm sure things looked pretty bleak back then. However, today Americans will pay double price for an imported German made auto.
Justin

Richmond, VA

#17 Feb 1, 2012
Crack Head wrote:
Oh, and forgot to mention $3.5 Billion of the $7.6 Billion they paid back, WAS ANOTHER LOAN FROM TAXPAYERS!!!!!!
http://washingtonexaminer.com/blogs/beltway-c...
Someone should draw a caricature of Obama as a street hustler playing a $4,000 Billion shell game with a crowd of onlookers.
Mothra

United States

#18 Feb 1, 2012
The reported "profits" from Chrysler are actually "Modified Operating Profit", as reported in their press release.

http://www.chryslergroupllc.com/en-us/investo...

First off, "operating profit":

The profit earned from a firm's normal core business operations. This value does not include any profit earned from the firm's investments (such as earnings from firms in which the company has partial interest) and the effects of interest and taxes.

Also known as "earnings before interest and tax" (EBIT).

Calculated as:

Operating profit = operating revenue - operating expenses
-- investopedia

Then Chrysler 'modified it'(also from the press release):

(b) Modified Operating Profit (Loss) is computed starting with net income loss) and then adjusting the amount to (i) add back income tax expense and exclude income tax benefits,(ii) add back net interest expense (excluding interest expense related to financing activities associated with a vehicle lease portfolio referred to as Gold Key Lease),(iii) add back all pension, other postretirement benefit obligations (OPEB) and other employee benefit costs other than service costs,(iv) add back restructuring expense and exclude restructuring income,(v) add back other financial expense,(vi) add back losses and exclude gains due to cumulative change in accounting principles, and (vii) add back certain other costs, charges and expenses, which include charges factored into the calculation of Adjusted Net Income (Loss). The reconciliation of net income to Adjusted Net Income (defined above), Modified Operating Profit and Modified EBITDA (defined below) for the three and twelve months ended December 31, 2011, is detailed in Table 1 of the attachment to the press release.

Get all that?

Back a couple years ago when GM stated it's first "profit" they actually called it an "operating profit", but subsequent reports of GM's "profit" dropped the "operating" and just called it "profit" not realizing that "operating" is not a descriptor but an actual accounting term.

Hmmm... but that's an awful lot of background info to put in an article, so let's just call it "profit" and pat Obama on the back.
discounted med

Nha Trang, Vietnam

#19 Feb 1, 2012
carey529 wrote:
<quoted text>
and HOW many jobs were lost? HOW many dealerships were FORCED to close? HOW many bondholders got fcked?
bankrupcy would have had the same results, without a bailout.
Jeep=Cheap Liebertea, Patriot on sell 69% off 3AMericA ;-000
discounted med

Nha Trang, Vietnam

#20 Feb 1, 2012
Crack Head wrote:
Oh, and forgot to mention $3.5 Billion of the $7.6 Billion they paid back, WAS ANOTHER LOAN FROM TAXPAYERS!!!!!!
http://washingtonexaminer.com/blogs/beltway-c...
bi bye Jeep-Cheap Patroit-Libertea! ;-000
discounted med

Nha Trang, Vietnam

#21 Feb 1, 2012
OneRyder wrote:
And they paid back all 7.6 billion in bail out funds way back in May of 2011. Another saving of jobs that will never be added onto the jobs save/created by Pres. Obama.
Imagine losing all the jobs and businesses that support GM and Chrysler?
Imagine not having American auto manufacturing?
Imagine not being able to respond, like we did during WWII, to the need to rapidly build tanks and other military vehicles. During WWI we quickly revamped our auto assembly lines to military vehicles military lines.
Imagine if Romney was President, and he would have let GM and Chrysler go under?
If we're wiling to invest so much in Iraq. Why not be willing to invest just as much, if not more, in the U.S.?
Thank you President Obama
if Dr. Bill_mr! type profit is no cash!! ;-000h, about jobs!!;)

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