Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, October 12, 1995 TAG: 9510120052
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: Associated Press
DATELINE: DETROIT LENGTH: Medium
The results released by the No.3 domestic automaker Wednesday weren't unexpected, because the third quarter historically is the weakest period of the year for the largest U.S. automakers.
But Chrysler's poor showing in Mexico provided a graphic illustration of the severe impact on American companies operating in that country, which has been struggling through a severe recession since late 1994.
Chrysler sold only 6,000 vehicles in Mexico for the July-September quarter. That's fewer than it sells in the United States during a typical day. A year earlier, Chrysler sold 24,000 vehicles in Mexico.
The automaker reported net earnings for the July-September period were $354 million, or 91 cents a share, compared with $651 million, or $1.76 a share, in last year's third quarter.
Model changeovers, vacation-slowed production and sluggish summer sales have always depressed third-quarter results for U.S. automakers. But Chrysler's profits grew from the second quarter to the third, mainly because much of the cost of introducing the minivans - including higher rebates to clear out old models - was absorbed in the second quarter.
Its profit-per-vehicle was $492, down $109 from a year ago but $189 higher than in the second quarter.
Executive Vice President Gary Valadeexpressed optimism about profit growth for the next year.
``There are an awful lot of good signs for the fourth quarter and 1996, the first one being the minivan launch essentially will be behind us,'' Valade said in a telephone news conference after the earnings report.
by CNB