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CHRYSLER FINANCIAL ANNOUNCES YEAR-END EARNINGS

 SOUTHFIELD, Mich., Jan. 18 /PRNewswire/ -- Chrysler Financial Corporation (CFC) today reported 1993 net earnings of $129 million, compared to net earnings of $231 million in 1992.
 John P. Tierney, Chairman of CFC, said the 1993 net earnings decrease was caused primarily by the adoption of new accounting standards in 1993 and 1992, which adversely affected year-to-year net earnings comparisons by $81 million, and by higher borrowing costs incurred under the company's revolving credit agreements.
 "Partially offsetting these factors were increased automotive volume and reduced credit losses," Tierney said.
 At December 31, 1993, CFC was managing $28.3 billion in receivables, down $1.8 billion from a year ago. The company's total assets at December 31, 1993, were $14.4 billion, down $3.1 billion from a year ago. The decreases in receivables managed and total assets are a result of the company's continued downsizing of its nonautomotive businesses and assets.
 During 1993, CFC completed the sale of substantially all of the consumer and inventory financing businesses and assets of its Chrysler First subsidiary, and the sales of Chrysler Capital's rail and marine operating lease businesses for total cash proceeds of $2.4 billion.
 Chrysler Credit, CFC's automotive finance subsidiary, had receivables managed of $25.0 billion at year end 1993, compared to $22.5 billion a year ago.
 During 1993, Chrysler Credit's automotive financing volume was 516,000 new passenger cars, trucks and minivans which represented 25 percent of Chrysler's U.S. retail deliveries, compared with 413,000 or 24 percent in 1992.
 In 1993, Chrysler Credit also financed at wholesale 1.5 million vehicles representing 75 percent of Chrysler's U.S. shipments, compared to 1.2 million vehicles or 69 percent in 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 managing $3.3 billion of receivables at December 31, 1993. A year ago, the company's nonautomotive operations were managing $7.6 billion of receivables.
 Chrysler Insurance, the company's property, casualty and inventory insurance subsidiary, had direct insurance premiums written of $151 million during 1993, compared to $132 million for the same period a year ago.
 CFC in 1993 continued to emphasize and improve its automotive receivable securitization programs. During the year, the company received net proceeds of $7.8 billion from 11 placements of U.S. and Canadian securities backed by retail automotive receivables, and $740 million of funding from two new long-term revolving arrangements for dealer inventory financing.
 During 1993, all four U.S. rating agencies raised their ratings of CFC's debt securities and short-term commercial paper to solid investment grade levels. The company re-established its medium term note program in April and sold $853 million of notes by year end. In other capital markets activities, the company raised $1.45 billion in seven underwritten debt offerings and prepaid under call provisions seven issues of outstanding debt totalling $905 million.
 At the close of the year, the company had commercial paper outstanding of $2.8 billion, compared to $0.4 billion a year ago, and had no borrowings outstanding under its U.S. and Canadian bank revolvers, compared to $5.9 billion of borrowings a year ago.
 -0- 1/18/94
 /CONTACT: J.R. Ferry of Chrysler Financial, 313-948-3889/
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CO: Chrysler Financial Corporation; Chrysler Corporation ST: Michigan IN: FIN AUT SU: ERN

SM -- DE008 -- 2606 01/18/94 09:34 EST
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Publication:PR Newswire
Date:Jan 18, 1994
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