Printer Friendly


 SOUTHFIELD, Mich., Oct. 14 /PRNewswire/ -- Chrysler Financial Corporation (CFC) today reported net earnings of $22 million for the third quarter of 1993, compared to net earnings of $45 million for the third quarter of 1992.
 John P. Tierney, Chairman of CFC, said the third quarter net earnings were affected by higher borrowing costs incurred under the company's revolving credit agreements and a $16 million charge due to the recently enacted increase in the U.S. corporate income tax rate.
 After first quarter accounting changes, CFC's net earnings were $74 million for the first nine months of 1993 compared to $205 million for the same period a year ago. Accounting changes in 1993 and 1992 adversely affected nine month net earnings comparisons by $80 million, with a $29 million charge for retiree health care in 1993 compared to a $51 million gain from accounting for income taxes in 1992.
 At Sept. 30, 1993, CFC was servicing $26.3 billion in receivables, down $2.8 billion from a year ago. The company's total assets at the end of the third quarter were $13.9 billion, down $4.0 billion from a year ago. The decreases in receivables serviced and total assets are a result of the company's downsizing of nonautomotive operations over the last 12 months.
 Chrysler Credit, CFC's automotive finance subsidiary, had receivables serviced of $22.8 billion at the end of the third quarter, compared to $21.5 billion a year ago.
 During the third quarter, Chrysler Credit financed 117,000 new passenger cars, trucks and minivans representing 24 percent of Chrysler's U.S. new retail deliveries. In the same period of 1992, Chrysler Credit financed or leased 93,000 new retail vehicles or 23 percent of Chrysler's U.S. new retail sales.
 Chrysler Credit also financed at wholesale 332,000 vehicles representing 77 percent of Chrysler's U.S. new factory shipments during the third quarter, compared to 303,000 or 69 percent of factory shipments financed in the same period of 1992.
 CFC's nonautomotive operations, consisting of Chrysler Capital, a commercial leasing and lending unit, and Chrysler First Business Credit, a small business loan operation, were servicing $3.5 billion in receivables at Sept. 30, 1993. A year ago, the company's nonautomotive operations were servicing $7.6 billion in receivables.
 Chrysler Insurance, CFC's property, casualty and inventory insurance subsidiary, had direct insurance premiums written of $112 million during the first nine months of 1993, compared to $96 million for the same period a year ago.
 In capital markets activity during the third quarter, CFC issued $178 million of medium term notes and raised $450 million in three underwritten debt offerings. The company received net proceeds of $2.0 billion from the sale of automotive receivables to public investors in the U.S. and Canada. CFC also prepaid under call provisions five issues of outstanding debt totaling $740 million.
 At the close of the quarter, CFC had repaid all borrowings under its U.S. Bank Revolver. Effective Oct. 15, CFC is reducing commitments under this facility by $675 million to $4.7 billion, approximately eight months ahead of schedule.
 Since June 30, 1993, all four U.S. rating agencies have raised their ratings of CFC's debt securities and commercial paper. CFC's senior debt is now rated BBB by Standard & Poor's; BBB by Duff & Phelps; and BBB by Fitch; and Baa3 by Moody's Investor Service. Commercial paper is now rated as follows: Standard & Poor's, A2; Duff & Phelps, D-2; Fitch, F-2; and Moody's, Prime-3.
 -0- 10/14/93
 /CONTACT: Jack Ferry of Chrysler Financial Corporation, 313-948-3889/

CO: Chrysler Financial Corporation ST: Michigan IN: AUT FIN SU: ERN

JG -- DE006 -- 2074 10/14/93 09:33 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 14, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters