Chrysler reports first quarterly profit since '09
DETROIT (Reuters) - Chrysler Group LLC reported its first quarterly profit since the company emerged from a U.S.-funded bankruptcy nearly two years ago and came under the management control of Italian automaker Fiat SpA <FIA.MI>.
Chrysler also gave further details on its refinancing of $7.5 billion of loans owed to the United States and Canada stemming from its 2009 bailout.
Its first-quarter net income came to $116 million, compared with a net loss of $197 million a year earlier.
Revenue shot up 35 percent to $13.1 billion, spurred by the company's 16 revamped models, including the Grand Cherokee and the Chrysler 300.
The company reported an operating profit of $477 million in the first quarter, compared with $143 million a year earlier.
It also said on Monday that it would borrow $3.5 billion in a senior secured six-year term loan and $2.5 billion in secured bonds, that will have eight- and ten-year maturities.
The company plans to use the term loan, bonds and $1.3 billion in cash from Fiat to refinance its government loans during the second quarter.
The company also confirmed plans to secure a $1.5 billion five-year revolving credit facility, as sources previously told Reuters. <ID:N29188494>
In the past two years, the company overhauled its vehicle lineup. The company has also built some renewed buzz for its flagship brand with a Super Bowl ad, bearing the tagline "Imported from Detroit."
Sergio Marchionne, chief executive of both Chrysler and Fiat is pushing Chrysler to earn net income of as much as $500 million this year.
(Reporting by Deepa Seetharaman; Editing by Derek Caney)