Daimler says Chrysler lost nearly $3 billion in brief time

Automotive News | February 27, 2008 - 9:45 am EST

FRANKFURT (Reuters) — Ailing U.S. automaker Chrysler LLC posted a net loss of 1.94 billion euros ($2.92 billion) between the close of its sale on Aug. 4 and the end of the third quarter, former owner Daimler AG said on Wednesday.

The loss was mainly due to extraordinary charges resulting from items that included restructuring measures and a new agreement reached with the UAW.

Daimler added that as of the end of last year, Chrysler had not drawn upon a $1.5 billion credit line to which the German carmaker had committed.

According to Daimler’s figures, Chrysler posted revenue of 7.97 billion euros ($12.01 billion) during the period and listed total assets on its balance sheet of 90.4 billion euros ($136.32 billion) at the end of September.

Liabilities totaled 87.75 billion euros ($132.33 billion).

Exchange rates are calculated based on today’s euro-dollar values.

The figures, used as the basis for applying the equity method in Daimler’s consolidated financial statement, are adjusted for "significant transactions and events" during the fourth quarter of 2007, it said.

Chrysler’s results impact Daimler’s earnings with a three month delay.

Daimler has a stake of 19.9 percent in Chrysler after selling the company last year to U.S. private equity firm Cerberus Capital Management LP.

As a private company, we do not publish financial figures," a spokeswoman for Chrysler said.