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 Daimler: Chrysler lost $2.7B in August and September

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elcobra44
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PostSubject: Daimler: Chrysler lost $2.7B in August and September   Wed Feb 27, 2008 3:06 pm

Tom Krisher / Associated Press

DETROIT -- German automaker Daimler AG says former partner Chrysler LLC lost about $2.7 billion in the two months between the time Daimler sold controlling interest in August and the end of the third quarter on Sept. 30.
Daimler said in its annual report Wednesday the figure was calculated under international financial reporting standards used in Europe and not under U.S. accounting standards. The figure also includes some significant expenses in the fourth quarter.

Daimler sold 80.1 percent of Chrysler to Cerberus Capital Management LP in August. Chrysler now is a privately held company and is no longer required to report its earnings.

Chrysler spokesman David Barnas would not confirm or deny the figure as accurate. But he says the automaker has ample cash to meet present and future needs.

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080227/BIZ/802270465/1148/rss25
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elcobra44
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PostSubject: Chrysler disputes report of $2.7B loss   Thu Feb 28, 2008 2:02 am

Tom Krishner / Associated Press


DETROIT -- Chrysler LLC lost about $2.7 billion in the two months after Daimler AG sold controlling interest in the U.S. automaker to a New York private equity firm, Daimler said in its annual report Wednesday.

The figure, for the period from Aug. 4 to Sept. 30, 2007, was calculated under international financial reporting standards used in Europe and not under U.S. accounting standards, Daimler said.

Chrysler, however, disputes the figures.

The net loss also includes about $466 million in expenses incurred in the fourth quarter of last year, including Chrysler restructuring costs and costs related to a new four-year contract with the United Auto Workers, Daimler said in its report, filed with the U.S. Securities and Exchange Commission.

Daimler reported that for the full year in 2007, Chrysler lost 870 million euros, or roughly $1.2 billion when converted at the euro-to-dollar exchange rate that Daimler reported for the third quarter. It was unclear how much of Chrysler's fourth-quarter results were included in the figure because neither Daimler nor Chrysler would answer questions about the report.

The figures, though, give a glimpse into how Chrysler has performed financially since Daimler sold 80.1 percent of the automaker to New York-based Cerberus Capital Management LP in August. Chrysler now is a privately held company and is no longer required to report its earnings.

Chrysler, late Wednesday, said, from an operating earnings standpoint, Chrysler was profitable during the two-month period, according to a statement from Chrysler spokesman David Barnas.

Barnas said the company believes any differences are attributable to the different accounting standards.

Daimler also said in its report that former Chrysler Chief Executive Tom LaSorda received about $18.9 million from Daimler last year, including a roughly $14.3 million payment made after the sale to Cerberus took place.
Former Chief Operating Officer Eric Ridenour received about $7.5 million, including a $4.4 million payment made after the sale.

Barnas also said the automaker has ample cash and capital dollars to meet its present and future objectives.

"Since August and the return of Chrysler as an independent company, we have not only been meeting but in many cases exceeding all key metrics," Barnas said. "We are making the tough decisions for the long-term health of the company."

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080228/AUTO01/802280330/1148/rss25
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