Industry News
Daimler reports Chrysler losses in 2007 annual report
29th Febuary 2008
Daimler AG filed its 2007 Annual Report filed with the U.S. Securities and Exchange Commission on February 27th. The report, which includes the company's audited consolidated financial statements for the year 2007, is also available at www.daimler.com/ir/reports.
The report indicates that Chrysler, owned by Daimler unti 4th August last year, recorded a net loss of €1.94 billion ($2.92 billion) between the close of its sale on 4th August and the end of September, mainly in connection with the then new agreement with the UAW union, and exceptional costs resulting from restructuring which were not necessarily incurred in during the two-month period.
However, Chrysler LLC had not drawn on the $1.5bn loan facility granted by Daimler to its new owner Cerberus by the end of last year. Chrysler’s revenue during the period reported was put at €7.97 billion, and its assets at the end of September were put at €87.75bn.
A Chrysler spokesman told the Detroit Free Press on 27th February that Chrysler had not in fact lost the reported sum during August-September, and that its losses for the whole year were significantly lower than the $2.9bn reported by Daimler. The difference was attributed by Chrysler to the companies' use of different accounting conventions.
Daimler also confirmed in its regulatory filing that it had paid Chrysler CEO Tom LaSorda a $15.7-million bonus for the successful sale of Chrysler to Cerberus Capital Management. LaSorda received a total compensation package from Daimler last year worth about $20.7 million at current exchange rates.
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