Chrysler Corporation Reports Record Q3 1998 Earnings
12 October 1998
Chrysler Corporation Reports Record Third-Quarter 1998 Earnings
AUBURN HILLS, Mich., Oct. 12 -- Chrysler Corporation
today announced record third-quarter 1998 net earnings of
$682 million, or $1.05 per common share ($1.02 per diluted common share).
Third-quarter 1997 net earnings were $441 million, or $0.66 per common share
($0.65 per diluted common share).
Pretax earnings for the third quarter of 1998 were $1.079 billion compared
to third-quarter 1997 pretax earnings of $726 million. Included in third-
quarter 1997 earnings was a $41 million charge ($25 million after tax) for
costs related to the discontinuance of Chrysler's Eagle brand. Third-quarter
1998 pretax earnings were Chrysler's second highest for any third-quarter.
Chrysler's net earnings for the first nine months of 1998 were
$2.737 billion, or $4.23 per common share ($4.14 per diluted common share),
compared with $1.953 billion, or $2.86 per common share ($2.82 per diluted
common share) for the first nine months of 1997. Net earnings and earnings
per common share for the first nine months of 1998 were Chrysler's highest
first nine months results ever. Pretax earnings for the first nine months of
1998 were $4.353 billion, Chrysler's second highest first nine months ever,
compared to pretax earnings of $3.241 billion in the first nine months of
1997. Chrysler's 1997 first nine months results were negatively impacted by a
29-day strike at the Mound Road Engine plant and a $41 million charge
($25 million after tax) for the costs related to the discontinuance of
Chrysler's Eagle brand.
"Chrysler's results in the third quarter were outstanding," said Chrysler
Chairman Robert J. Eaton. "It would have been easy for our people to become
distracted by all the merger activities. But, they have remained focused on
what's become a real dogfight in the marketplace and brought home record
results in the industry's toughest quarter.
"Our merger with Daimler-Benz is about a month away. The great job done
by all of our employees, dealers and suppliers has built fantastic momentum as
we move toward the birth of DaimlerChrysler," Eaton added. "We know, however,
that even after the merger is completed, we cannot afford to lose sight of our
current business plans. We must redouble our efforts not only to find
synergies within the new organization, but also to produce results.
"While incentives remain high, and overall market conditions around the
world are tough, we continue to maintain a strong showing -- a testament to
our product strength in the marketplace.
"This is evidenced by the addition of the new 1999 Jeep(R) Grand Cherokee
to the lineup and the continued strong performance of Dodge Durango, Ram Quad
Cab, Intrepid, Chrysler Concorde, LHS, 300M and our other products.
"The creation of DaimlerChrysler is filled with a good deal of emotion and
hard work for everyone at both companies," Eaton said. "But I am more
confident than ever that this merger is the right thing to do and that the
time is right. Both companies are justifiably proud of their respective
performance, innovation and achievements. Together, we will do even greater
things."
Other third-quarter 1998 results include:
* Record third-quarter total revenues were $15.0 billion, compared with
third-quarter 1997 revenues of $13.2 billion.
* Net earnings as a percent of total revenues increased to 4.6 percent,
compared with 3.3 percent in third-quarter 1997.
* Chrysler's combined U.S. and Canadian retail (including fleet) sales of
cars and trucks were 651,192 units, compared with 607,789 units in third-
quarter 1997.
* Chrysler's combined U.S. and Canadian retail (including fleet) car and
truck market share was 15.5 percent, compared with 14.1 percent in third-
quarter 1997.
* International retail sales were 48,076 vehicles, down 21 percent over
third-quarter 1997 sales of 61,127 vehicles. In Asia Pacific, Chrysler sold
7,610 vehicles, a decrease of 49 percent over 14,964 vehicles in third-quarter
1997.
* Chrysler Financial Corporation (CFC) reported third-quarter 1998 pretax
earnings of $180 million, an all-time quarterly pretax earnings record. Net
earnings for third-quarter 1998 were $116 million, the highest third-quarter
net earnings ever. Third-quarter 1997 net earnings were $111 million, and
third-quarter 1997 pretax earnings were $168 million. For the first nine
months of 1998, CFC net earnings were $344 million, a CFC first-nine-months
net earnings record. CFC pretax earnings for the first nine months of 1998
were $518 million, another CFC first-nine-months record. Net and pretax
earnings for the first nine months of 1997 were $307 million and $465 million,
respectively.
3rd Q '98 3rd Q '97 9 mos. '98 9 mos. '97
Total Revenues (Billions) $15.0 $13.2 $48.8 $43.7
Pretax Earnings (Millions) $1,079 $726 $4,353 $3,241
Net Earnings (Millions) $682 $441 $2,737 $1,943
Net Earnings per
Common Share (EPS)
Basic $1.05 $0.66* $4.23 $2.86*
Diluted $1.02 $0.65* $4.14 $2.82*
Dividends Declared
per Common Share $0.40 $0.40 $1.20 $1.20
Worldwide Factory
Shipments 673,163 605,356 2,348,252 2,125,048
Retail Unit (incl. fleet) Sales
U.S. and Canada Combined 651,192 607,789 2,095,853 1,936,843
Car, Truck Market Share
U.S. and Canada Combined 15.5% 14.1% 16.0% 15.1%
Average U.S. Retail
Incentives per Vehicle $1,280 $1,140 $1,340 $950
Cash, Cash Equivalents,
and Marketable Securities
at End of Period (Millions)
Consolidated - - - - $10,628 $7,599
Automotive - - - - $9,567 $6,880
Shares Used to Calculate
EPS (Millions)
Basic 647.3 671.0* 646.5 682.5*
Diluted 665.5 681.0* 661.5 692.7*
Shares of Common Stock
Outstanding at End of
Period (Millions) - - - - 647.4 662.5
* Third-quarter 1997 and nine-months 1997 have 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.