American Motors Corp. said Monday that it earned $20 million in the fourth quarter of 1986, its first quarterly profit in two years, and cut its annual losses nearly a third from 1985 levels.
AMC, the nation's No. 5 auto maker, last earned a profit in the fourth quarter of 1984, which was its only profitable year since 1979.
The 1986 fourth-quarter profit came on revenue of $938 million, compared to a year-ago loss of $6.7 million on revenue of $1.13 billion.
For the year as a whole, AMC lost $91.3 million, 27.1% less than in 1985, when it lost $125.3 million.
Joseph Cappy, AMC president and chief executive, said the auto maker cut its costs by $90 million from 1984 to 1986.