Chrysler Announces Sevenfold Increase in Profits

07/16/96

Chrysler Corporation announced its third best quarterly net profit ever, and its third consecutive quarter of earning over $1 billion. The corporation pinned their success on good truck and car sales plus a $101 million gain for the sale of Electrospace Systems and Chrysler Technologies Airborne Systems. The results also include a $65 million writedown for the write-down of Thrifty Rent-A-Car.

Chrysler's profits jumped 700% from $135 million a year ago to $1.04 billion. The carmaker said they cornered 16.7 percent of the North American car and truck market during the second quarter--its highest level in more than 25 years--up 1.5 percentage points from a year ago.

A surge in sales of Chrysler's Dodge Ram pickup trucks and minivans allowed it to grow revenues by about 27 percent to a record $15.8 billion from $12.5 billion a year earlier. Its earnings were equal to $2.75 per fully diluted share, up from 35 cents a year ago.

Paul Dever -- The Auto Channel