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Clarification of Daimler AG's Full-Year 2008 Earnings Announcement Related to its 19.9 Percent Interest in Chrysler Holding LLC

Posted on: Tuesday, 17 February 2009, 17:25 CST

AUBURN HILLS, Mich., Feb. 17 /PRNewswire/ -- Today, Daimler AG reported on its 19.9 percent share of Chrysler Holding LLC's 2008 results under International Financial Reporting Standards (IFRS). Daimler AG's results for Chrysler Holding LLC reported net losses of euro 1.390 billion for the period October 1, 2007, through September 30, 2008. Chrysler Holding LLC's comparable U.S. GAAP losses attributable to Daimler for the same period were euro 934 million for both its finance and automotive businesses. The net loss attributable to only the automotive business of Chrysler LLC was euro 876 million, which includes restructuring charges and asset impairments of approximately euro 455 million.

The difference between the loss of euro 1.390 billion reported by Daimler AG related to its 19.9 percent interest in Chrysler Holding LLC and the euro 934 million of net losses is attributable to the following:

-- Adjustments for differences between U.S. GAAP and IFRS - (euro 21 million loss)

-- Daimler AG adjustments related to Chrysler LLC's fourth quarter 2008 restructuring actions - (euro 109 million loss)

-- Other Daimler AG adjustments not related to current period Chrysler Holding LLC results - (euro 326 million loss)

"The financial numbers Daimler AG reported today represent the twelve months ending September 30, 2008, for Chrysler Holding LLC," said Ron Kolka, Executive Vice President and Chief Financial Officer, Chrysler LLC. "Chrysler is looking to the future and today we submitted a plan to the U.S. Treasury which outlines the Company's plans to: complete its ongoing aggressive restructuring; achieve cost-reducing concessions from stakeholders; and enhance its product lineup.

"Chrysler's plan outlines the Company's continued restructuring initiatives including eliminating fixed costs of $3.8 billion, reducing its workforce by approximately 35,000, trimming capacity by 1.3 million units and selling off non-earning assets totaling $1 billion."

Chrysler Holding LLC is comprised of Chrysler LLC, the automotive company which manufactures and sells Chrysler, Dodge and Jeep(R) vehicles worldwide and Chrysler Financial which provides financial services for these vehicles in the North American region.

SOURCE Chrysler LLC

Source: PR Newswire

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