Chrysler reports quarterly loss on buyout charges

Chrysler Group, now wholly owned by Fiat, reported on Monday a first-quarter net loss $690 million after about $1.2 billion in charges related to the January buyout of the United Auto Workers 41.5% stake in the company.

Excluding the buyout items, the company had net incomes of $486 million, up from $166 million in the quarter a year ago.

Net revenue for Chrysler Group in the quarter was $19 billion, up 23% from a year ago, the company reported. Free cash flow was $919 million, up from $449 million a year ago, and Chrysler had $12.4 billion in cash as of March 31.

Global vehicle shipments were 668,000, up 16%, and sales were 621,000, up 10%. U..S. retail sales were up 19% in the quarter and U.S. market share was 12.5%, up from 11.4% a year ago, driven primarily by sales growth for Ram trucks and the Jeep brand..

The UAW health care trust got a stake in the company in exchange for taking over retiree health care liability as part of the government sponsored bankruptcy reorganization in 2009. The $4.35 billion deal with the union and Chrysler and Fiat allowed Fiat to take full ownership of Chrysler.

The two are being combined into Fiat Chrysler Automobile, a new company that says it will be formed and begin trading in the U.S. by the end of this year. Fiat shareholders will get shares in the new company under a plan due to be voted on by Fiat shareholders this summer.

The items related to the UAW deal were a $504 million non-cash loss related to the prepayment of a UAW trust note and a $672 million charge for buying the shares held by the union.

Fiat last week reported a first-quarter loss of 319 million euros ($444 million), that also included charges related to the UAW deal.