(Reuters) - Chrysler Group LLC forecast a profit for 2011 ahead of an initial public offering set for the second half of the year, and the launch of new vehicle models intended to spur its recovery.

Chief Executive Sergio Marchionne has said the company plans to report a "couple" quarters of net income before its expected IPO this year.

The automaker managed by Fiat SpA, on Monday projected net income between $200 million and $500 million for 2011. It expects its 2011 revenue to jump by nearly one-third to $55 billion.

The fourth quarter marked the first time that a year-over-year comparison was available for Chrysler, which emerged from a U.S.-funded bankruptcy in June 2009.

Chrysler reported a $199 million net loss for the fourth quarter, hurt by high interest rates on $7.4 billion in loans from the U.S. and Canadian governments, stemming from its bailout.

Excluding those expenses, Chrysler reported an operating profit of $198 million, reversing a $267 million operating loss for the same period a year earlier.

Its fourth-quarter revenue was $10.76 billion, up 14 percent from the year earlier. Chrysler said it sold fewer vehicles to fleet customers in the fourth quarter. Fleet sales are typically less profitable than those to consumers.

Sales to consumers, or so-called retail sales, are likely to jump in 2011 due to Chrysler's revamped vehicle portfolio, IHS Automotive analyst Rebecca Lindland said.

"From a long-term investor standpoint, the banks that are going to refinance their debt prefer to see a higher retail rate," Lindland said.

'NOT YET DONE'

Before a public offering, Chrysler must refinance its government loans for lower-interest debt. In 2010, Chrysler paid more than $1.23 billion in interest expenses.

The automaker's U.S. market share last year was 9.2 percent, up from 8.8 percent in 2009. The company aims to achieve more than 13 percent market share in the United States by 2014, according to its 2009 turnaround plan.

Chrysler emerged from a U.S. government-funded bankruptcy in mid-2009. It is now managed by Fiat, which owns 25 percent of the company.

Chrysler's global sales last year topped 1.5 million cars and trucks, buoyed by a new models, including a revamped Jeep Grand Cherokee.

Marchionne noted in a statement that Chrysler's recovery has so far bested industry expectations, but he added that the automaker was still a long way from meeting its objectives.

"Our job is not yet done," Marchionne said in a statement. "We have a lot of work ahead to fulfill our five-year business plan objectives."

For 2010, Chrysler reported nearly $42 billion in revenue, in line with its November financial projections. The company's annual operating profit of $763 million, topped its November outlook of about $700 million.

Chrysler said its operating profit would be some $2 billion in 2011.

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