Chrysler Profit Plummets 30%

Chrysler Corp. said today that its first-quarter profit slipped to 30% below the year-ago level as soaring expenditures on products and higher labor costs cut into earnings from a modest increase in sales.

The nation’s No. 3 auto maker reported net earnings of $356.9 million, or $2.36 per share, in the three months ending March 31 and a 7% increase in sales from the year-ago period. Chrysler was the first of the Big Three auto makers to report first-quarter results. General Motors Corp. and Ford Motor Co. are expected to release earnings later this week.