Press Release
Chrysler Announces Third Quarter Results
10/16/96
Chrysler Reports Record Third-Quarter 1996 Results
AUBURN HILLS, Mich., Oct. 14 -- Chrysler Corporation
today announced third-quarter 1996 net earnings of $680
million, or $0.93 per common share ($0.93 per fully diluted common
share) -- the highest third-quarter net earnings and earnings per
share in the Company's history. Included in third-quarter 1996 net
earnings was a $55 million charge ($88 million pretax) for costs
associated with a voluntary early retirement program for certain
salaried employees. Third-quarter 1995 net earnings were $354 million,
or $0.45 per common share ($0.45 per fully diluted common share).
Pretax earnings for the third quarter of 1996 were $1.111 billion --
Chrysler's best third-quarter pretax earnings ever and an increase of
$529 million, or 91 percent, over third-quarter 1995 pretax earnings
of $582 million.
"Chrysler's performance in the third quarter was outstanding," said
Robert J. Eaton, Chairman and Chief Executive Officer of Chrysler
Corporation. "It was fueled by record setting demand for our products
which led to a new third-quarter U.S. retail unit sales record and
produced the best model year for U.S. retail unit sales in the
company's history.
"In addition, we are very pleased that we have reached agreements with
the UAW and CAW. These agreements represent a solid foundation from
which we can go about the business of growing Chrysler Corporation for
the benefit of everyone in the Chrysler family.
"Our success isn't an aberration nor have we plateaued, we've merely
built a foundation for even better things in the future. Many people
have said -- and we have no reason to disagree -- that Chrysler has
the hottest designs in the business, the best supplier relations, a
progressive operating system and has turned up the heat
internationally.
"We believe we are ready for the future and are well positioned to
build on our success," Eaton concluded.
Other third-quarter 1996 highlights include:
-- Total revenues were $14.4 billion for third-quarter 1996 -- a new
third-quarter record for Chrysler and an increase of $2.4 billion, or
20 percent, over third-quarter 1995 total revenues of $12.0 billion.
-- Net earnings as a percent of total revenues increased to 4.7
percent in third-quarter 1996, compared with 2.9 percent in
third-quarter 1995.
-- Chrysler's combined automotive cash, cash equivalents and
marketable securities was $7.490 billion, at September 30, 1996,
compared with $6.407 billion at September 30, 1995.
-- Chrysler's worldwide factory shipments in third-quarter 1996 were
650,529 units, compared to 581,853 units during the same period in
1995.
-- Chrysler's combined U.S. and Canadian retail (including fleet) unit
sales of cars and trucks in third-quarter 1996 were 645,766 units,
compared to 560,841 units for the same period in 1995.
-- Chrysler's combined U.S. and Canadian retail car and truck market
share for third-quarter 1996 was 15.5 percent, compared with 13.6
percent in third-quarter 1995.
-- International retail sales in the third quarter of 1996 were 57,209
vehicles, up 19 percent over third-quarter 1995 sales of 48,207
vehicles. In Europe, Chrysler sold 28,079 vehicles in third-quarter
1996, an increase of 28 percent over 21,918 vehicles in third-quarter
1995.
-- Chrysler repurchased $452 million of its common stock in the
third-quarter 1996. As previously announced, the company initiated a
$2 billion common stock buyback for 1996, and expects to repurchase an
additional $1 billion of common stock in 1997. Both actions are
subject to market and general economic conditions. Chrysler completed
a $1 billion common stock buyback in 1995 and, through the first nine
months of 1996, repurchased an additional $1.6 billion of common
stock.
-- Chrysler Financial Corporation (CFC) reported third-quarter 1996
net earnings of $94 million -- CFC's best third quarter ever. CFC's
third-quarter 1995 net earnings were $87 million. Third-quarter 1996
pretax earnings were $144 million, compared with third-quarter 1995
pretax earnings of $138 million.
Chrysler's net earnings for the first nine months of 1996 were $2.722
billion, or $3.65 per common share ($3.62 per fully diluted common
share) compared with $985 million, or $1.28 per common share ($1.24
per fully diluted common share) for the first nine months of 1995.
Net earnings for the first nine months of 1996 included a $100 million
charge ($65 million pretax) for the write-down of Thrifty Rent-A-Car
System, Inc., a $55 million charge ($88 million pretax) for costs
associated with a voluntary early retirement program, and an $87
million gain ($101 million pretax) related to the sale of Electrospace
Systems, Inc. and Chrysler Technologies Airborne Systems, Inc.
Net earnings for the first nine months of 1995 included charges of
$162 million ($263 million pretax) for production changes at
Chrysler's Newark (Del.) assembly plant, $96 million for the adoption
of the consensus on Emerging Issues Task Force Issue 95-1, and $71
million ($115 million pretax) for a voluntary minivan owner service
action.
(For financial information on Chrysler Corporation, please see the
Investor Relations section within the Chrysler Corporation web site at
http://www.chryslercorp.com and the Media Relations home page at
http://www..media.chrysler.com.)
3rd Qtr '96 3rd Qtr '95 9 mos. '96 9 mos. '95
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Total Revenues
(Billions) $14.4 $12.0 $45.2 $38.1
Pretax Earnings
(Millions) $1,111 $582 $4,501 $1,790
Net Earnings
(Millions) $680 $354 $2,722 $985
Net Earnings per
Common Share (EPS)*
Primary $0.93 $0.45 $3.65 $1.28
Fully Diluted $0.93 $0.45 $3.62 $1.24
Dividends Declared
per Common Share* $0.35 $0.25 $1.00 $0.70
Worldwide Factory
Shipments 650,529 581,853 2,205,474 1,931,769
Retail Unit (incl. fleet)
Sales U.S. and Canada
Combined 645,766 560,841 2,063,461 1,814,478
Car, Truck Market Share
U.S. and Canada
Combined 15.5% 13.6% 16.2% 14.6%
Average U.S. Retail
Incentives per
Vehicle $685 $870 $650 $845
Cash, Cash Equivalents,
and Marketable Securities
at End of Period (Millions)
Consolidated -- -- $8,678 $7,611
Automotive -- -- $7,490 $6,407
Shares Used to Calculate
EPS (Millions)*
Primary 728.3 774.5 745.6 752.3
Fully Diluted 732.3 787.3 751.8 796.9
Shares of Common Stock
Outstanding at End of
Period (Millions)* -- -- 713.5 382.6
* All per-share data and shares used to calculate EPS have been
adjusted for the two-for-one stock split. Shares of common stock
outstanding, as of September 30, 1996, also reflect the two-for-one
stock split.