Chrysler turns first profit since bankruptcy

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DETROIT, May 2 (AP): Chrysler has turned its first profit since leaving bankruptcy two years ago. The company reported first-quarter net income of $116 million and revenues of $13.1 billion Monday. The profit is a milestone in Chrysler's long road back to health after its 2009 bankruptcy. It last reported a profit in 2007. Several trends put Chrysler Group LLC back in the black. Its sales rose 18 per cent worldwide in the first three months of the year as the economy improved and buyers responded to a fresh lineup of new cars and trucks. "Chrysler Group's improved sales and financial performance in the first quarter show that our rejuvenated product lineup is gaining momentum in the marketplace and resonating with customers," Chrysler CEO Sergio Marchionne said in a statement. Momentum is crucial. Chrysler wants to hold an initial public offering later this year or early next, but investors must first see a string of profitable quarters. Chrysler's new vehicles caught buyers' eyes in the latest quarter. US sales of the revamped Jeep Grand Cherokee SUV jumped 64 per cent, while sales of the Chrysler 200 sedan more than quadrupled over those of its predecessor, the Sebring. Chrysler said buyers were willing to pay more for its cars and trucks. Edmunds.com estimates the company lowered incentive spending by nearly $1,000 per vehicle in the quarter. Revenues rose 35 per cent.