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Chrysler said
yesterday that it had lost $4 billion since emerging from bankruptcy
protection almost a year ago. But it also reported positive cash flow
and a small operating profit in the first quarter of 2010.

The results are the
first official look at the U.S. automaker’s finances since it came out
of bankruptcy June 10 under the control of the Italian automaker Fiat.

The chief executive
of both companies, Sergio Marchionne, said Chrysler is on track to meet
its 2010 targets, including a break-even-or-better performance, when
excluding one-time charges. On that basis, Chrysler earned $143 million
in the first quarter on revenue of $9.7 billion.

Counting one-off
charges, Chrysler lost $197 million in the first quarter, mostly due to
interest payments, compared with a $2.5 billion loss in the fourth
quarter.

Chrysler also said it had $7.4 billion in cash on hand as of March 31, about $1.5 billion more than it had at the end of 2009.

Separately, Fiat
reported a first quarter net loss of €25 million, or $34 million,
significantly narrower than the €410 million of a year earlier. But the
shares fell as many analysts had expected a small profit.

Sales rose to €12.9 billion, from €11.3 billion.

The figures were
released ahead of the presentation of Fiat Group’s five-year business
plan, expected to include a spin off of its automotive unit, which
produces the flagship Fiat brand.

The operating
profit at Chrysler occurred even as its sales in the United States
continued to decline, while many of its competitors began to report
large year-over-year gains. Chrysler’s market share was 9.2 percent in
the first quarter, down two points from a year earlier but up one point
from the fourth quarter.

Mr. Marchionne said he expects improvement in Chrysler’s sales and balance sheet in the coming months.

“This positive
operating result in the first quarter is a concrete indication to our
customers, dealers and suppliers that the 2010 targets we have set for
ourselves are achievable,” Mr. Marchionne said in a statement. “We are
also generating cash to finance the investments being made in our
product portfolio and brand repositioning.” From June 10 to Dec. 31,
the company lost $3.8 billion and had revenue of $17.7 million. It said
$2.1 billion of that loss was a charge related to the trust fund that
took over coverage of health care for United Automobile Workers
retirees on Jan. 1.

The rest was blamed largely on its steep decline in sales and “significant start-up costs.” Mr.

Marchionne said
Chrysler has been strengthening its liquidity since bankruptcy through
“improving trading margins, operational efficiencies and rigorous cost
discipline.” The company said it has $2.4 billion remaining in its
credit lines from the United States and Canadian governments.

Unlike General
Motors across town, Chrysler is not in a position to begin paying back
the money it borrowed from taxpayers and made no mention of repayment.
Mr. Marchionne has previously said Chrysler would pay back the loans by
2014.

G.M. on Wednesday
said it has paid off its $8.2 billion debt to the United States and
Canada in full, five years ahead of its original repayment schedule.
The company’s chairman and chief executive, Edward E. Whitacre, planned
to make the announcement during a visit to G.M.’s assembly plant in
Kansas City, Kansas.

(Mr. Whitacre also
planned to reveal a $257 million investment in the Kansas plant and one
in Michigan to build the next version of the Chevrolet Malibu sedan.)
G.M. did not repay all the $50 billion it borrowed from the United
States. Most of that amount was converted to a 61 percent equity stake
held by the U.S. Treasury Department.

Chrysler is 10 percent owned by the U.S. Treasury.

The New York Times