Chrysler Reports Third-Quarter 1997 Results; Announces Share Buyback Plans
10 October 1997
Chrysler Reports Third-Quarter 1997 Results And Announces a $2 Billion Increase to Its Share Buyback Program
AUBURN HILLS, Mich., Oct. 10 -- Chrysler Corporation
today announced third-quarter 1997 net earnings of $441 million, or
$0.65 per common share ($0.65 per fully diluted common share). Third-quarter
1996 net earnings were $680 million, or $0.93 per common share ($0.93 per
fully diluted common share). Pretax earnings for the third quarter of 1997
were $726 million compared to third-quarter 1996 pretax earnings of $1.111
billion.
Included in third-quarter 1997 earnings was a $41 million charge ($25
million after tax) for costs related to the decision to discontinue Chrysler's
Eagle brand at the end of the 1998 model year. Third-quarter 1996 earnings
included an $88 million charge ($55 million after tax) for costs associated
with a voluntary early retirement program.
Chrysler Corporation also announced today that its Board of Directors
approved a $2 billion increase to its share buyback program. The additional
share buyback is expected to be completed by the end of 1998, subject to
market and general economic conditions.
During the third quarter of 1997, Chrysler purchased $641 million of its
common stock, bringing the total amount of share repurchase during 1997 to
$1.638 billion. Through September 30, 1997, Chrysler has purchased $4.7
billion of its common stock, or 160.8 million shares, since January 1995.
"Although below last year's record earnings, our results for the quarter
represent the third-best third quarter in the Company's history," said Robert
J. Eaton, Chairman, President and Chief Executive Officer. "The results were
achieved in an increasingly competitive market and during the most ambitious
multi-vehicle launch in our history.
"By the end of this year, we will bring to market three all-new vehicles
-- Dodge Durango, Dodge Intrepid and Chrysler Concorde -- and two significant
new models -- Dodge Ram Quad Cab and 5.9 Liter Jeep(R) Grand Cherokee Limited.
In early 1998, new models of our Dodge Ram Van and Ram Wagon will also be
available. This sets a solid foundation for 1998 performance," said Eaton.
"We expect the industry, the economy and consumer confidence to remain
strong through 1998. This, coupled with the introduction of our exciting
line-up of new cars and trucks, led our Board of Directors to authorize a
$2 billion increase to our share buyback program for 1998, bringing our total
share buyback program to $7 billion since it was introduced in 1995," Eaton
said. "We believe we are well positioned to meet the competitive challenges
of the market and we remain committed to returning solid value to our
shareholders."
Other third-quarter 1997 results include:
* Total revenues were $13.2 billion, compared with third-quarter 1996
revenues of $14.4 billion.
* Net earnings as a percent of total revenues decreased to 3.3 percent,
compared with 4.7 percent in third-quarter 1996.
* Chrysler's combined U.S. and Canadian retail (including fleet) sales of
cars and trucks were 607,789 units, compared with 645,766 units in
third-quarter 1996.
* Chrysler's combined U.S. and Canadian retail (including fleet) car and
truck market share was 14.1 percent, compared with 15.5 percent in
third-quarter 1996.
* International retail sales were 61,127 vehicles, up 7 percent over
third-quarter 1996 sales of 57,210 vehicles. In Latin America, Chrysler
sold 13,375 vehicles, an increase of 107 percent over 6,454 vehicles in
third-quarter 1996.
* Chrysler Financial Corporation (CFC) reported net earnings of $111
million and pretax earnings of $168 million -- CFC's highest quarter
ever. Third-quarter 1996 net earnings were $94 million, and third-
quarter 1996 pretax earnings were $144 million.
Chrysler's net earnings for the first nine months of 1997 were $1.953
billion, or $2.83 per common share ($2.82 per fully diluted common share).
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). Pretax earnings for
the first nine months of 1997 were $3.241 billion, compared to pretax earnings
of $4.501 billion in the first nine months of 1996.
Net earnings for the first nine months of 1997 included the unfavorable
impact of a 29-day strike at the Mound Road Engine Plant in Detroit that
temporarily shut down seven of Chrysler's assembly plants and a $25 million
charge ($41 million pretax) for costs related to the decision to discontinue
Chrysler's Eagle brand. 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.
3rd Q '97 3rd Q '96 9 mos. '97 9 mos. '96
Total Revenues
(Billions) $13.2 $14.4 $43.7 $45.2
Pretax Earnings
(Millions) $726 $1,111 $3,241 $4,501
Net Earnings (Millions) $441 $680 $1,953 $2,722
Net Earnings per
Common Share (EPS)
Primary $0.65 $0.93 $2.83 $3.65
Fully Diluted $0.65 $0.93 $2.82 $3.62
Dividends Declared
per Common Share $0.40 $0.35 $1.20 $1.00
Worldwide Factory 605,356 650,529 2,125,048 2,205,474
Shipments
Retail Unit (incl. fleet) Sales
U.S. and Canada
Combined 607,789 645,766 1,936,843 2,063,461
Car, Truck Market Share
U.S. and Canada
Combined 14.1% 15.5% 15.1% 16.2%
Average U.S. Retail
Incentives per Vehicle $1,140 $685 $950 $650
Cash, Cash Equivalents,
and Marketable Securities
at End of Period (Millions)
Consolidated -- -- $7,599 $8,678
Automotive -- -- $6,880 $7,490
Shares Used to Calculate
EPS (Millions)
Primary 679.2 728.3 690.3 745.6
Fully Diluted 681.6 732.3 693.1 751.8
Shares of Common Stock
Outstanding at End of
Period (Millions) -- -- 662.5 713.5
SOURCE Chrysler Corporation