Chrysler Reports Record 1998 First-Quarter Results
9 April 1998
Chrysler Reports Record 1998 First-Quarter Results
AUBURN HILLS, Mich., April 9 -- Chrysler Corporation
today reported record first-quarter results for net earnings and an
all-time quarterly record for earnings per common share.
Chrysler's first-quarter 1998 net earnings of $1.052 billion, surpassed
the previous first-quarter record of $1.029 billion, set in 1997. First-
quarter 1998 pretax earnings were $1.672 billion, compared to record first-
quarter 1997 pretax earnings of $1.704 billion. First-quarter 1998 basic and
diluted earnings per common share were $1.63 and $1.60, respectively --
Chrysler's highest quarterly earnings per share ever. First-quarter 1997
basic and diluted earnings per common share were $1.47 and $1.45,
respectively.
"We're very pleased with our first-quarter results. Our performance this
quarter shows that we can respond in a difficult environment and continue to
move the Company forward," said Chrysler Chairman Robert J. Eaton. "Every
Chrysler employee can be proud of their role in this achievement.
"We continue to build momentum and are gratified to see the results of our
cost reduction efforts," added Eaton. "Consumer confidence remains high and
U.S. industry sales appear to be headed for their fifth straight year above
the 15 million mark, but competition continues to increase and become more
intense.
"We've continued our string of successful product launches. The Dodge
Durango, now at full production, has customers lining up for them. The new
1998 Dodge Intrepid and Chrysler Concorde also continue to be well received.
This month, we're launching the all-new 1999 Chrysler 300M, the image icon for
the brand worldwide, and the luxurious Chrysler LHS," he said.
"We feel that we have the right focus, for good or bad times," Eaton
noted. "Get the product right, improve quality, and contain costs. You do
those three things right and you're going to have satisfied customers and
shareholders -- and we are committed to doing those things right."
Chrysler's other first-quarter 1998 highlights:
* Total revenues were $16.8 billion, an increase of $0.7 billion,
compared to $16.1 billion a year ago.
* Net earnings as a percent of total revenues were 6.3 percent, compared
to 6.4 percent a year ago.
* Chrysler's worldwide factory shipments were 825,720 units, compared to
781,239 units a year ago.
* Chrysler's combined U.S. and Canadian retail (including fleet) sales of
cars and trucks were 642,089 units, compared to 626,844 units a year ago.
* Chrysler's combined U.S. and Canadian retail (including fleet) car and
truck market share was 16.4 percent, compared to 15.6 percent a year ago.
* International retail sales were 50,843 vehicles, down 9 percent from
first-quarter 1997 sales of 55,607 vehicles.
* Chrysler continued its common stock buyback by purchasing 5.3 million
shares, or $188 million, of its common stock during the first quarter. Since
the current $2 billion buyback plan began last November, Chrysler has
purchased 11.8 million shares, or $416 million of its common stock. Through
March 31, 1998, the Company had purchased 180 million shares, or $5.4 billion,
of common stock in a buyback program that started in 1995.
* Chrysler Financial Corporation (CFC) reported record first-quarter 1998
pretax earnings of $160 million, compared to $141 million a year ago, and
record first-quarter 1998 net earnings of $108 million, compared to
$93 million a year ago.
1st Qtr '98 1st Qtr '97 4th Qtr '97
Total Revenues (Billions) $16.8 $16.1 $17.5
Pretax Earnings (Millions) $1,672 $1,704 $1,316
Net Earnings (Millions) $1,052 $1,029 $852
Net Earnings per
Common Share (EPS)
Basic $1.63 $1.47* $1.30
Diluted $1.60 $1.45* $1.28
Dividends Declared per
Common Share $0.40 $0.40 $0.40
Worldwide Factory Shipments 825,720 781,239 761,933
Retail Unit (incl. fleet) Sales
U.S. and Canada Combined 642,089 626,844 623,107
Car, Truck Market Share
U.S. and Canada Combined 16.4% 15.6% 15.3%
Average U.S. Retail
Incentives per Vehicle $1,230 $705 $1,185
Cash, Cash Equivalents,
and Marketable Securities
at End of Period (Millions)
Consolidated $8,714 $8,663 $7,848
Automotive $7,851 $7,624 $7,075
Shares Used to Calculate
EPS (Millions)
Basic 646.1 697.7* 654.3
Diluted 656.3 708.4* 663.3
Shares of Common Stock
Outstanding at End
of Period (Millions) 645.5 687.9 648.4
* First-quarter 1997 has been restated to reflect the adoption of
Statement of Financial Accounting Standards (SFAS) No. 128 "Earnings per
Share." SFAS No. 128 replaced the presentation of primary EPS and fully
diluted EPS with a presentation of basic EPS and diluted EPS, respectively.
Basic EPS excludes potential share dilution and is computed based on the
weighted-average number of common shares outstanding for the period; diluted
EPS reflects the potential dilution of securities that could share in the
earnings. The adoption of this new accounting standard did not have a
material effect on Chrysler's reported EPS amounts.
SOURCE Chrysler Corporation