American Motors Corp. today announced the completion of its executive reorganization and its first full-year profitability since fiscal 1974.
The first of a series of announcements scattered throughout the day was AMC's report of $3 million profits for the fourth quarter and $8.3 million for the year, figures which had been forecast by industry analysts.
Following its board of directors meeting around midday, the company said vice chairman R. W. McNealy resigned as a result of a "mutual" decision by the executive and the board. Four other top executive and the board. Four other top executives' promotions also were announced.
The McNealy resignation "completes" the firm's top-leve reorganization, and AMC chairman Roy Chapin, who announced last month that he was relinquishing the post of the chief executive officer.
Chapin remains as chairman while AMC president Gerald Meyers has taken on the chief executive's [TEXT OMITTED FROM SOURCE]
"The agreement has been reached and the parting was amicable," Chapin said of the resignation.
AMC said fourth-quarter profits included an extraordinary credit of $5.2 million, representing a reduction of 1977 income taxes resulting from the timing of federal income tax deductions.
The yearly profit compared with net losses of $46.3 million in fiscal 1976 and $27.5 million the previous year.
Chairman Roy D. Chapin Jr. and president Gerald C. Meyers cited non-automotive operations and record sales of Jeep vehicles as contributing to AMC's "much improved" performance in 1977.
The auto maker's Jeep, military and other specialized vehicles have kept AMC out of the red throughout the year while passenger car sales continued to lag.
Domestic sales of passengers car for the fiscal year fell to 187,285 from 254,731, while Jeep sales jumped 15 per cent to a record 115,567, AMC reported.
In separate announcements made later in the day, AMC said it will introduce three new car models and a special Jeep model early next year. Two of the passenger auto models are based on the popular luxury compact Concord, and one is similar to the subcompact Gremlin. The Jeep product will be a luxury model of the Jeep Wagoneer.
AMC predicted its new Concord luxury car will improve the company's share of the passenger car market in 1978 with sales of 100,000 of the new model.