Chrysler Corp., which has indicated a need for substantial amounts of new capital over the next several years, is weighing the possibility of selling preferred stock to help cover its future financing requirements.
The company confirmed yesterday that it will ask shareholders at its May 2 annual meeting to authorize the issuance of up to 20 million preferred shares. It has no preferred stock now.
Shareholders also will be asked to increase authorized common stock to 120 million shares from 80 million. bed common stock to 120 million shares from 80 million. But a company spokesman said Chrysler hasn't any plans to sell new common shares to the public!
Chrysler recently reported an unexpected $59.4 million operating loss for the fourth quarter of 1977. It also predicted a deficit for the current quarter and warned that it expects "depressed" earnings for the next two years.
In February, company executives made it clear that Chrysler faces some severe financial strains over the next several years as it spends billions of dollars to redesign its cars and reequip its plants to remain competitive in the domestic auto business.
Executives indicated then that some new long-term financing arrangements, including the tapping of outside money markets, might be sought later this year.