Chrysler Posts Quarterly Loss of $664 Million

Chrysler Corp. today reported a fourth-quarter loss of $664.0 million, its first in eight years, as it was hit by $577 million in costs for restructuring its business to reflect reduced demand for automobiles.

The loss, the first since the fourth quarter of 1982, totaled $2.90 a share, contrasted with a profit of $433.0 million, or $1.85 a share, in the year-ago period.

Revenues fell 15% to $7.93 billion from $9.30 billion, reflecting the elimination of operations sold off in its restructuring.

For the year, Chrysler’s net profit fell 66% to $359.0 million from a profit of $1.05 billion in 1988. Earnings per share fell to $1.55 from $4.66. Revenues for the No. 3 car maker edged upward in 1989 by 2% to $34.92 billion from $34.15 billion.

The auto restructuring costs included plant closings and staff reductions to reflect slowing sales.

Meanwhile, Chrysler said today that it has agreed to sell Gulfstream Aerospace Corp. for $825 million to a partnership of Gulfstream Chairman Allen E. Paulson and the New York investment firm Forstmann, Little & Co.

Chrysler Chairman Lee A. Iacocca said proceeds of the all cash transaction will go to general operations of the company. “We’re happy with the price,” he said.

Chrysler purchased the Savannah, Ga., maker of corporate jets in 1985 for $637 million.

The deal is not subject to any financing conditions nor will it be financed with any junk bonds, Forstmann, Little and Paulson said in a news release.