(August 9, 2010) Chrysler today posted a second-quarter net loss, but reported an operating gain of $183 million — a $40 million improvement over the first quarter's operating profit.

The increase in the operating profit for the second quarter over the first three months of 2010 came mainly from production increases and was met by pressure from "moderate" incentives increases and vehicle introduction costs, Chrysler said.

The automaker said it still had an "extraordinary" amount of work to complete, but its turnaround was on track and it could raise its financial outlook later this year.

Chrysler, which emerged from a U.S.-government supported bankruptcy in June 2009 under the management control of Italy's Fiat SpA, said 2010 would continue to be a year of stabilization and transition.

The automaker left intact its 2010 forecast, including a minimum of break-even on an operating basis, but said it was highly probable it would be raised when it announces third-quarter results.

The No. 3 U.S. automaker said its net loss had narrowed to $172 million in the second quarter from $197 million in the first quarter. The year-earlier quarter included only a few weeks of the new Chrysler and is not comparable.