
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, January 18, 1995                   TAG: 9501190034
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: DETROIT                                  LENGTH: Short

WORKERS TO SHARE WEALTH OF CHRYSLER'S RECORD YEAR

Chrysler Corp. had the most profitable year in its 69-year history in 1994, and will share its $3.7 billion earnings with its employees, the company reported Tuesday.

Strong sales of cars and trucks and deep cuts in spending on marketing helped the No. 3 U.S. automaker, Chairman Robert J. Eaton said.

The previous Chrysler earnings record for a year was $2.4 billion in 1984. In 1993, the company had a net loss of $2.5 billion, but accounting changes that year produced a one-time reduction in earnings of nearly $5 billion.

Eaton said two weeks ago that profit-sharing payments to about 75,000 union employees would average two months' gross pay. News reports estimated the payment amount at $7,500 or more.

An additional 16,500 nonunion employees also will receive profit-sharing payments, and managers and top executives are eligible for bonuses. Most employees will learn about their share this week.

Other reasons for this year's profit included cuts in rebates and other incentives, and continued cost-cutting and waste-elimination programs that began in 1989.

Eaton said the company expects to revamp its entire product line this year. Production is to start this spring on the first complete makeovers of the Dodge Caravan, Plymouth Voyager and Chrysler Town & Country minivans.

Chrysler's earnings per share were $10.11 for the year, compared with a loss of $7.62 in 1993. Its 1994 revenues were $52.2 billion, up from $43.6 billion in 1993.

General Motors Corp. and Ford Motor Co. are expected to report their 1994 financial results by early February.

by CNB