Ford, Chrysler up in latest year

Press, 26 February 1986, Page 35

Ford, Chrysler up in latest year

NZPA-AP Detroit The Ford Motor Company increased its net profit almost 14 per cent to SUS2.S billion in 1985, compared with the previous year.

Chrysler Corporation also reported a decline in earnings for 1985, down 33 per cent to $1.68. The reports brought 1985 net profits of the big three carmakers to SB.IB, compared with more than $9.88 in 1984, the industry’s record year.

Last week General Motors Corporation reported a SUS4B profit, down 21 per cent from the previous year. The big three expected the profit declines because, in all cases, the 1984 results were records set during a period of tighter Japanese import controls, less spending on capital improvements and acquisitions, and higher average profit margins a car.

Competition increased greatly in 1985 because of the relaxation of Japanese import quotas and growing market shares by most European Importers. Costly incentive sales

compaigns and heavy spending on new tools and plants also depressed profits. Ford, ranked No. 2 carmaker in the United States, listed its world sales at 5U552.7 billion, up S3OOM.

Net Income per share at Ford came to SUS 13.63 a share for the year compared with $U515.79 a year earlier. Ford’s net profit In the fourth quarter was SUS72OM compared with SUS72IM a year earlier. Ford said Its U.S. operations earned SUS4OOM less in 1985 than in 1984. The company, however, lifted earnings in the competitive European market and cut its losses in Latin America and Asia.

Much of Chrysler’s decline was the result of its renewed status as a fullfledged taxpayer, having used up credits earned during its brush with bankruptcy five years ago. It was the first year since 1976 that Chrysler paid taxes in every quarter.

Chrysler said the combined costs in the fourth quarter of a 12-day nation-wide United States

strike, a one-week Canadian strike, and a 22-day strike at its St Louis bigcar plant came to SUSISOM. The cost of lump-sum payments to United Auto Workers members as part of the strike settlements came to SUS2SOM. Chrysler’s sales for 1985 were a record $21.38, 8.7 per cent up on the previous year.

Per-share earnings at Chrysler for the year were 5U514.07, compared with $lB.BB in 1984. The earnings per share for 1985 would be $9.38 a share if figured according to last week’s three-for-two stock spilt, Chrysler said.

Fourth-quarter earnings were put at S2ISM, or $1.96 a share, compared with S6O9M or $4.91 a share a year earlier. Chrysler said earnings per share adjusted for the stock split would be $1.31 for the fourth quarter, compared with $3.27 a year earlier. GM, regaining its status as the nation’s largest corporation, reported record revenue of $96.4 billion, up 14.9 per cent on a year earlier.