P.M. BRIEFING : Chrysler Earnings Down 80%
Chrysler Corp. said today that its earnings tumbled 80% during the first quarter as it wrestled with budget cuts, heavy incentive costs and slumping market share.
The No. 3 auto maker said it earned $71 million, or 32 cents a share during the quarter ended March 31, compared with a profit of $351 million, or $1.50 a share in the year-ago period.
The earnings came on revenues of $7.56 billion, down 22% from $9.66 billion reported in the first quarter of last year.
Chrysler’s stock slipped 25 cents a share to close at a 52-week low of $14.50 a share in New York Stock Exchange trading on Monday. Wall Street analysts had predicted marginal earnings for the company.
No. 1 General Motors Corp. and No. 2 Ford Motor Co. are expected to report first-quarter earnings later this week.
At the end of the first quarter, Chrysler held 11.4% of the domestic car market, down from 12.9% a year earlier.