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CHRYSLER FINANCIAL CORP. REPORTS $49 MILLION SECOND-QUARTER NET EARNINGS

CHRYSLER FINANCIAL CORP. REPORTS $49 MILLION SECOND-QUARTER NET EARNINGS
 SOUTHFIELD, Mich., July 28 /PRNewswire/ -- Chrysler Financial Corporation today reported 1992 second-quarter net earnings of $49 million after a $24 million one-time goodwill writeoff. The company's second-quarter net earnings compared to $80 million for the same period of 1991.
 CFC's 1992 six-month net earnings of $160 million compared to $157 million in the first six months of 1991.
 John P. Tierney, chairman of CFC, said the 1992 second-quarter goodwill writeoff reflected the company's plan to sell or liquidate commercial nonautomotive assets.
 "Lower levels of earning assets partially offset by reduced credit losses also affected CFC's second-quarter results," Tierney said.
 At June 30, 1992, CFC was servicing $35.9 billion in receivables, compared to $39.6 billion at June 30, 1991. The company's total assets at the end of the second quarter were $18.8 billion, down from $22.7 billion at the end of the 1991 second quarter.
 Chrysler Credit, CFC's automotive financing unit, was servicing $25.6 billion of receivables at the end of the 1992 second quarter, compared to $27.3 billion a year ago.
 During the second quarter, Chrysler Credit financed or leased 113,905 new passenger cars and light-duty trucks which accounted for 24 percent of Chrysler's new vehicle retail deliveries in the U.S. In the comparable 1991 period, Chrysler Credit financed or leased 107,087 vehicles or 26 percent of Chrysler's U.S. deliveries.
 Chrysler Credit also financed 315,325 vehicles or 71 percent of Chrysler's factory shipments during the second quarter, compared to 253,173 vehicles or 66 percent of Chrysler's factory shipments financed in the same period of 1991.
 Chrysler Capital, CFC's commercial leasing and lending unit, had $5.1 billion in receivables serviced at the end of the second quarter, compared to $5.9 billion a year ago.
 Chrysler First, the CFC unit that provides consumer and inventory financing and secured commercial property loans, had $5.2 billion in receivables serviced at June 30, 1992, compared to $6.4 billion at June 30, 1991.
 Consistent with CFC's plans to sell certain nonautomotive portfolios in 1992, assets of Chrysler Capital's Diversified and Public Finance groups were sold for $618 million during the second quarter. In addition, CFC has identified for sale another $3.0 billion of nonautomotive assets of Chrysler First and Chrysler Capital.
 Chrysler Insurance, CFC's property, casualty and inventory insurance subsidiary, had direct insurance premiums written of $63 million during the first six months of 1992, compared to $66 million in the same period of 1991.
 During the 1992 second quarter, CFC sold automotive and nonautomotive receivables in four placements, resulting in net proceeds of $1.8 billion. Through the first six months of the year, CFC had net proceeds of $3.6 billion from receivables sold in the U.S. and Canada.
 At the end of the second quarter, CFC had $6.8 billion of bank borrowings and commercial paper outstanding.
 CFC also started negotiations during the second quarter to amend its current $6.8 billion Eurodollar and domestic bank credit facilities which expire in the 1993 second quarter. CFC is seeking to extend these revolving facilities, under which $5.4 billion is outstanding, to 1995. The proposed amendment requires approval of all 152 participating banks and would provide for reductions in lending commitments over the term of the agreement, more restrictive covenants, security interests in CFC's U.S. assets and increases in borrowing rates and commitment fees. CFC has received favorable responses from approximately 80 percent of the participating banks. Although the company could not predict whether it would be successful, its objective is to reach agreement with its banks in the next few weeks.
 -0- 7/28/92
 /CONTACT: R.B. Heath of Chrysler Financial Corp., 313-948-3890/
 (C) CO: Chrysler Financial Corporation ST: Michigan IN: FIN AUT SU: ERN


SM -- DE005 -- 3935 07/28/92 09:42 EDT
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Publication:PR Newswire
Date:Jul 28, 1992
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