The results for the third-ranked US car maker were distorted by a huge one-off accounting charge of dollars 4.7bn, which covers the firm's future liability for the cost of healthcare benefits for retired employees. The charge wiped out Chrysler's dollars 530m operating profit - which compares with a loss of dollars 231m in the comparable period a year ago - leaving it with a quarterly loss of dollars 4.1bn, or dollars 12.81 a share.
Operating profit, equal to about dollars 1.57 a share, was below Wall Street's prediction of dollars 1.80, prompting a sell- off of Chrysler shares.
In contrast, first-quarter results for Chase Manhattan managed to please banking analysts. The bank posted a loss of dollars 347m as a result of a decision to segregate for sale dollars 2bn worth of troubled property loans, taking a charge of dollars 884m. But it used dollars 500m worth of deferred tax credits to cushion the impact of the special reserve, resulting in a dollars 157m profit.Reuse content