The Michigan Daily-Tuesday, July 20, 1982-Page 5
' Chrysler profits
at five times
last year's level
From AP and UPI
NEW YORK - Chrysler Corp.,
struggling back from the brink of
bankruptcy, said yeterday it earned
$106.9 million in the second quarter,
five times better than its profit a year
ago, despite a dip in revenue.
Analysts cautioned, however, that the
recovery was a fragile one, coming on
the heels of more than $2 billion worth
of losses at Chrysler in the last two
years and on the eve of new contract
talks with the United Auto Workers
union.
Chrysler's second-quarter earnings
compared with a profit of $20.7 million
in the corresponding 1981 quarter.
Revenue fell to $2.87 billion from $2.88
billion.
"THIS SECOND-quarter profit is the
result of outstanding automotive
products selling well in a lousy market
and a management-labor cooperative
program of efficiency and productivity
that is a model for American industry,"
Chairman Lee Iacocca said at a news
conference.
He predicted the company will be
able to pay off $1.2 billion in federally
backed loans by 1985 - five years early -
"if the country doesn't go into a collap-
se."
For the first six months, the No. 3
automaker earned $256.8 million, com-
pared with a loss of $268.6 million in the
first half of 1981. Chrysler had a profit
of $150 million for the first quarter, but
that came from tax credits and the sale
of Chrysler's defense subsidiary which
erased an operating loss of $89 million.
"Against all the odds, record high in-
terest rates, record high unem-
ployment and a 3 -year depression in
the new car sales and a national
recession that's the worst in 50 years,
we've passed the test," Iacocca said.
"Now wedon't have to prove anything
anymore."
The other Big Three automakers,
General Motors Corp. and Ford Motor
Co., have not released their earning
reports. But industry anatysts are ex-
pecting all three to show a profit.
Chrysler's profit had been forecast in
the range of $50 million to $100 million.
"It was a magnificent performance,"
Arvid Jouppi, an analyst with Detroit-
based Colin Hochstin Co., said of the
Chrysler report.
Interstate water pact
supported
DES MOINES (UPI)- Delegates to
the Midwestern Governors' Conference
yesterday supported the formation of
an interstate compact on water resour-
ces but took no position on South
Dakota's controversial sale of Missouri
River water to Wyoming for use in a
coal slurry pipeline.
A task force considering water
resources issues decided the diversion
of river waters needs further study and,
while water transfers will be discussed
at the governors' meeting, it likely will
notje resolved at the conference.
David Harrison, a Michigan delegate
who chaired the water resources task'
force, said, "For us to sit in this
meeting and to try to solve the
problems between states on the issues
of water diversion is ridiculous. I don't
see this as a forum for this particular
issue."
HARRISON said the state officials at-
tending the conference support "the
concept of an interstate compact," he
said "the question is vhether we want
to go ahead haphazard until a compact
is reached."
South Dakota has signed a contract
with Energy Transportation Systems
Inc. to sell up to 50,000 acre-feet of
Correction
Thomas Anton was incorrectly
referred to as the chairman of the
Board in Control of Intercollegiate
athletics in an article appearing in the
July 16 edition of the Daily. Anton is a
member of the board, which is chaired
by Athletic Director Don Cahham.
in Midwest
water annually from the Missouri River
north of Pierre to enable the firm to use
some of it ina coal slurry pipeline from
Wyoming to southern states.
The task force agreed the issue of
water transfers is an "upstream-down-
stream issue that needs study" and
urged that work be completed on an in-
terstate compact on Missouri River
water use, but declined to take a
stronger position.
BILL CREWS, a task force member
from Iowa - one of the states which has
opposed the ETSI sale - said "We all
agree the states should solve these
issues among themselves."
He agreed with the task force ap-
proach not to take a position on water
diversion because "it's a sticky
question that involves many separate
states but isn't necessarily encom-
passing all these people" from the 13
states attending the conference.
Clyde Saukerson, the South Dakota
task force member, said his state is not
considering any future water sales
similar to the ETSI transfer, but he
deemed the ETSI sale as justifiable and
legal.
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One thing that isn't for sale at David's Bookstore is their resident feline
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eyeing the customers.
Former student publications
board secretary, 65, dies
A memorial service will be held at 1
p.m. today for Maurice M. Rinkel, 65,.
former Secretary-Treasurer of the
University's Board for Student
Publications. Rinkel died Friday at the
Huronview Lodge, a local convalescent
home.
Rinkel was born November 29, 1916 in
Cannelton, Indiana, moving to Ann Ar-
bor at the age of 10. After graduating
from high school, he attended the
University where he received
bachelor's and master's degrees, both
in business administration.
During World War II, Rinkel served
in the Navy, after which he was em-
ployed by the New York City accoun-
ting firm of Arthur Little as an accoun-
tant.
Rinkel returned to Ann Arbor in 1948,
accepting a position with the Univer-
sity in the Office of Student
Organizations. Since then he also held
several positions including Director of
the Law Club.
In 1950, Rinkel began working for the
Board for Student Publications. He
became well known to students and
administrators through his extensive
work with both organizations.
Following a long bout with illness,
Rinkel officially retired on April 30th of
this year.
Memorial services will be held at St.
Andrews Episcopal Church, 306 North
Division. In lieu of flowers, family
members are requesting that con-
tributions be sent to University radio
station WUOM.
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