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DaimlerChrysler says euro2.5B charge likely from Chrysler sale; unit posts euro406M 2Q profit

DaimlerChrysler says euro2.5B charge likely from Chrysler sale; unit posts euro406M 2Q profit

Automaker DaimlerChrysler AG said Wednesday that its Chrysler Group and the related financial services business in North America earned euro406 million (US$554.8 million) in the second quarter, an 18 percent rise from last year.
The entire company posted a second-quarter profit of euro1.44 billion (US$1.97 billion), down slightly from euro1.8 billion a year earlier, on sales of euro23.8 billion (US$32.52 billion), which were also down from euro24.6 billion last year.
DaimlerChrysler sold the Chrysler and North American financial services units to Cerberus Capital Management LLC earlier this month in a deal that saw the private equity group take an 80.1 percent stake in Chrysler for US$7.4 billion (euro5.42 billion).
Daimler said that the units, which are listed as discontinued operations, showed a profit of euro406 million (US$554.8 million) in the April-June period compared with euro342 million a year earlier.
The company also said it "anticipates a charge against earnings" of euro2.5 billion (US$3.42 billion) for the year, below its initial estimates of euro3 billion to euro4 billion (US$4.1 billion to US$5.47 billion).
Wednesday marked the last time that Chrysler's full earnings will be released to the public, because the company as controlled by a private equity firm will not be required to report quarterly results.
DaimlerChrysler retains a 19.9 percent share in Chrysler, so it will continue to report some Chrysler earnings starting with its third-quarter results in October.
But the German automaker plans to list Chrysler's results in a miscellaneous category and will not separate them from other holdings, such as its 22.5-percent share in the European Aeronautic Defense and Space Co.


Updated : 2021-05-18 19:09 GMT+08:00