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Page 1 Search Result Rank 1 of 55 Database S&P-CORPDE (c) 1999 McGraw-Hill Co. Inc. All rights reserved. PROFILE DaimlerChrysler AG Stuttgart, 70567 Germany TELEPHONE: 011-49-711-17-0 TYPE OF COMPANY: Industrial CUSIP: D1668R TICKER SYMBOL: DCX PRIMARY STOCK EXCHANGE: NYS (New York Stock Exchange) SECONDARY STOCK EXCHANGE(S): S&P NON-CONVERTIBLE BOND RATING(S): A+ (See BOND DESCRIPTIONS for details and RECENT NEWS for possible bond rating changes.) EMPLOYEES: 428000 INCORPORATION YEAR: 1926 INCORPORATION LOCATION: Germany PRIMARY SIC CODE: 3711 Motor vehicles and passenger car bodies SECONDARY SIC CODE(S): 3714 Motor vehicle parts and accessories 3721 Aircraft 3724 Aircraft engines and engine parts 6141 Personal credit institutions 6153 Short-term business credit institutions, except agriculture RECENT NEWS DAIMLERCHRYSLER AG DATE: 990225 EVENT: Annual Earnings (ANE) TITLE: Annual Earns.: Dec. '98 (For full details see RECENT FINANCIAL STATEMENTS.) Copr. West 1999 No Claim to Orig. U.S. Govt Works Page 2 COMPANY DESCRIPTION (REVISION DATE: 990106) CAPITALIZATION (June 30 '98) after acquisition of Chrysler Corp. in Nov. '98 and certain related transactions FINANCIAL LIABILITIES- DM 79,343,000,000. NOTE: For details and ratings of publicly held debt, see Bond Descriptions below. STOCK OUTSTANDING- Outstg. Shs. Ordinary no par.....................................................................................................1,003,000,000 CORPORATE BACKGROUND BUSINESS DESCRIPTIONDaimlerChrysler AG manufactures and assembles passenger cars, trucks and buses on six continents. Brand names include Mercedes-Benz, Chrysler , Dodge, Plymouth and Jeep. The world's third largest car maker, DaimlerChrysler is also a leading European aerospace firm, and it provides financial services. On November 12, 1998, Daimler-Benz AG, German's largest industrial concern, and Chrysler Corp., the 'three' in that exclusive club known as America's Big Three automakers, completed their long-awaited merger. The resulting company, DaimlerChrysler AG, emerges as the world's third-largest automaker in terms of revenue and the fifth largest in unit sales. Following the merger and certain related transactions, former Chrysler shareholders became the owners of some 42% of DaimlerChrysler's stock, with former Daimler-Benz shareholders receiving about 58% of the new entity. Daimler-Benz has been most active in Europe, North and South America and Japan, with an expanding presence in such markets as Eastern Europe and East and Southeast Asia. Known mainly for its luxury Mercedes-Benz passenger cars, Daimler-Benz, prior to its combination with Chrysler , was also the world's leading manufacturer of trucks over six metric tons gross vehicle weight and of buses over eight metric tons gross vehicle weight. With manufacturing plants and assembly facilities producing cars, trucks and buses on six continents, Daimler-Benz derived 71% of its 1997 revenues from automotive activities. DaimlerChrysler's aerospace unit is one of Europe's leading aerospace firms and the German partner (with a 38% share) in the European Airbus consortium. Airbus Industrie G.I.E. Activities include civil aircraft and helicopters, military aircraft and aeroengines. Aerospace contributed some 12% of Daimler-Benz's revenues in 1997. Daimler-Benz's services arm, debis, contributed 11% of the German company's 1997 revenues. The unit's financial services support the sale of Mercedes-Benz cars and trucks and other company products. Prior to the combination, U.S. automaker Chrysler operated in two principal industry segments, automotive operations and financial services. Chrysler (which will be renamed DaimlerChrysler Corp.) manufactures and assembles passenger cars in various size classes and models and produces trucks in pickup, sport-utility and van/wagon models. These vehicles are sold under the brand names Chrysler , Dodge, Plymouth and Jeep. In Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 3 addition, Chrysler buys and distributes certain passenger cars manufactured in the U.S. by Mitsubishi Motor Manufacturing of America, a subsidiary of Mitsubishi Motors Corp. Through subsidiaries, Chrysler also provides consumer and dealer automotive financing for its products. In the weeks leading up to the Daimler/Chrysler merger, Daimler-Benz said it expected to generate up to $3 billion in annual cost savings within three to five years of the merger and as much as $1.4 billion in 1999. DaimlerChrysler will maintain two operational headquarters, one at the current Chrysler headquarters in Auburn Hills, MI, and one at the current Daimler-Benz headquarters in Stuttgart, Germany. Automotive business will account for 90% of the combined company's sales. EMPLOYEES- Nov. 17, 1998, apx. 428,000. PRINCIPAL SUBSIDIARY- wholly ownedDaimlerChrysler Corp. INCORPORATED in Germany for the purpose of becoming the successor corporation to Daimler-Benz AG following completion of the Daimler-Benz exchange offer and merger. Pursuant to the Daimler-Benz exchange offer, which expired on Nov. 6, 1998, Co. accepted for exchange apx. 563,800,000 Daimler-Benz Ord. shs. (98.2%) on the basis of 1.005 Ord. shs. of Co. for each Ord. share of Daimler-Benz exchanged. Daimler-Benz was subsequently merged into Co. On Nov. 12, 1998, Co. acquired Chrysler Corp. (which was renamed DaimlerChrysler orp.), with Chrysler stockholders receiving 0.6235 of an Ord. share of Co. for each Chrysler share held. Daimler-Benz AG was formed in Germany in 1926 through the merger of Daimler-Motoren-Gesellschaft (formed by Gottlieb Daimler in 1890) and Benz & Cie. (formed by Carl Benz in 1883). BOARD OF MANAGEMENTR. J. Eaton, Co-Chrm J. E. Schrempp, Co-Chrm Manfred Bischoff Eckhard Cordes T. R. Cunningham T. C. Gale Manfred Gentz J. P. Holden Jurgen Hubbert K. J. Lauk Klaus Mangold D. K. Pawley T. W. Sidlik T. T. Stallkamp Heiner Tropitzsch G. C. Valade Klaus-Dieter Voehringer Dieter Zetsche SUPERVISORY BOARDHilmar Kopper Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 4 R. E. Allen Sir E. J. P. Browne J. A. Califano, Jr. Martin Kohlhaussen R. J. Lanigan P. A. Magowan Manfred Schneider G. R. Thoman Bernard Walter L. R. Wilson Mark Wossner OFFICE- Epplestrasse 225, Stuttgart, Germany 70567 (Tel.: 011-49-711-17-0). WEBSITE-http://www.daimlerchrysler.de. BOND DESCRIPTIONS AUBURN HILLS TRUST GTD. EXCHG. CERTIFICATES; Due May 1, 2020 (S&P Rating A+; at Oct. 30, 1998) Authorized............................................................................................................... $1,100,000,000 Outstanding (Dec. 31, 1998)........................................................................ $550, 000,000 Retired or in treas.............................................................................................$550, 000,000 TRUST AGREEMENT DATED May 1, 1990. INTEREST PAYABLE May & Nov. 1, to holders registered the preceding Apr. & Oct. 15, respectively. PRINCIPAL & INTEREST PAYABLE at Cede & Co., as Nominee of Depository Trust Co., NYC. INTEREST GRACE PERIOD- 30 days. INTEREST- Interest will be paid at a rate of 12% per annum for the interest period ending Oct. 31, 1998 (payable Nov. 1, 1998). Interest shall be based upon the debt rating for the Certificates and adjusted if necessary in response to changes in the rating. Based on such rating, the Applicable Rate (as defined) shall not be greater than 16.875% nor less than 11.125%. TRUSTEE- Chase Manhattan Bank Delaware, Wilmington. DENOMINATIONS- Issued in book-entry form covered by one or more fully registered Global Certificates registered in the name of Cede & Co., as Nominee of Depository Trust Co., NYC (Depository). EXCHANGEABLE at the option of DaimlerChrysler Corp. at any time in whole only for DaimlerChrysler Corp. Debs, due 2020. GUARANTEED unconditionally as to principal and interest by DaimlerChrysler Corp. Such Guaranty will rank equally with all unsecured and unsubordinated debt of DaimlerChrysler Corp. SECURITY- With certain exceptions, neither Chrysler Corp. nor any Subsidiary may guarantee or suffer to exist any debt secured by a mortgage, pledge or other lien on any Principal Domestic Automotive Plant or any shares of debt of any Subsidiary which owns or leases a Principal Domestic Automotive Plant, without securing the Certificates equally and ratably therewith-- all as defined. PRICE RANGE- OTC bid from Nov. 30, 1998 when trading on NYSE was suspended (delisted Dec. 23, 1998): Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 5 1997.....................160.875 143.875 1996........................... 157.5 138.125 1995.....................151 1/2 129 1994........................... 159.5 126 CHRYSLER CORP. 7.45% (SR.) DEBS.; Due Mar. 1, 2027 (S&P Rating A+; at Oct. 30, 1998) Authorized & Outstg. (Dec. 31, 1997)................................................. $600, 000,000 INDENTURE DATED Mar. 1, 1995. INTEREST PAYABLE Mar. & Sept. 1, to holders registered the preceding Feb. & Aug. 15, respectively. PRINCIPAL & INTEREST PAYABLE at Depository Trust Co., NYC. INTEREST GRACE PERIOD- 30 days. TRUSTEE- State Street Bank & Trust Co., Boston. DENOMINATIONS- Issued in book-entry form and covered by one or more fully registered Global Securities deposited with, or on behalf of. Depository Trust Co., NYC. REDEEMABLE at the option of DaimlerChrysler Corp. (formerly Chrysler Corp.) in whole or in part on 30 days' notice at the greater of (i) 100 and (ii) the sum of the present values of the Remaining Scheduled Payments thereon discounted to the redemption date on a semiannual basis at the Treasury Rate plus 18 basis points-- all as defined, plus int. in each case. SECURITY- A direct unsecured obligation. PRICE RANGE- OTC bid: 1997..................... 106.875 94.875 CHRYSLER CORP. 7.40% (SR.) DEBS.; Due Aug. 1, 2097 (S&P Rating A+; at Oct. 30, 1998) Authorized & Outstg. (Dec. 31, 1997)................................................. $500, 000,000 NOTE- Upon the occurrence of a Tax Event, DaimlerChrysler Corp. (formerly Chrysler Corp.) shall have the right to shorten the maturity of the Debs, to the minimum extent required, in the opinion of independent tax counsel, such that, after the shortening of the maturity, interest paid on the Debs, will be deductible for U.S. federal income tax purposes or, if such counsel is unable to opine definitively as to such minimum period, the minimum extent so required as determined by DaimlerChrysler Corp.'s directors, after receipt of an opinion of such counsel regarding the applicable legal standards. Prospective investors should be aware, however, that DaimlerChrysler Corp.'s exercise of its right to shorten the maturity of the Debs, will be a taxable event to holders for U.S. federal income tax purposes if the Debs, are treated as equity for such purposes before the maturity is shortened, assuming that the Debs, of shortened maturity are treated as debt for such purposes. Tax Event means, generally, that DaimlerChrysler Corp. shall have received an opinion of tax counsel to the effect that, as a result of certain changes in tax law, there is more than an insubstantial increase in the risk that interest paid by DaimlerChrysler Corp. on the Debs, is not, or will not be, deductible, in whole or in part, by DaimlerChrysler Corp. for U.S. federal income tax purposes. INDENTURE DATED Mar. 1, 1985. INTEREST PAYABLE Feb. & Aug. 1, to holders registered the preceding Jan. & July 15, respectively. PRINCIPAL & INTEREST PAYABLE at Depository Trust Co., NYC. INTEREST GRACE PERIOD- 30 days. TRUSTEE- State Street Bank & Trust Co., Boston. DENOMINATIONS- Issued in book-entry form covered by one or more fully registered Global Securities deposited with, or on behalf of, Depository Trust Co., NYC. Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 6 REDEEMABLE at the option of DaimlerChrysler Corp. (formerly Chrysler Corp.) in whole or in part on 30 days' notice at a price equal to the greater of (i) 100 or (ii) the sum of the present values of the Remaining Scheduled Payments (as defined) thereon discounted to the redemption date a semiannual basis at the Treasury Rate (as defined) plus 20 basis points, plus int. in each case. On or after Aug. 1, 2087, the Debs, will be redeemable at the option of DaimlerChrysler Corp. in whole or in part on 30 days' notice at 100 & int. SPECIAL REDEMPTION PROVISION- If a Tax Event occurs and in the opinion of an independent tax counsel there would, notwithstanding any shortening of the maturity of the Debs., be more than an insubstantial risk that interest paid by DaimlerChrysler Corp. (formerly Chrysler Corp.) on the Debs, is not, or will not be, deductible, in whole or in part, by DaimlerChrysler Corp. for U.S. federal income tax purposes, DaimlerChrysler Corp. will have the right, within 90 days following the occurrence of such Tax Event, to redeem the Debs, in whole (but not in part) on 30 days' notice at the greater of (i) 100 and (ii) the sum of the present values of the Remaining Scheduled Payments (as defined) thereon discounted to the redemption date on a semiannual basis at the Treasury Rate (as defined) plus 35 basis points, plus int. in each case. SECURITY- A direct unsecured obligation. PRICE RANGE- OTC bid: 1997....................... 106.75 98 DAIMLER-BENZ NORTH AMERICA CORP. 7 3/8% (GTD.) NOTES; Due Sept. 15, 2006 (S&P Rating A+; at Oct. 30, 1998) Authorized & Outstg. (Sept. 24, 1996)......................................... US$500,000,000 NOTE- Subject to certain exceptions and limitations, Daimler-Benz North America Corp. (DBNCA) or DaimlerChrysler AG, as the case may be, will pay to the holder of any Note such additional amounts as may be necessary in order that every net payment of the principal of (and premium, if any) and interest, if any, on any such Notes after deduction or other withholding for or on account of any present or future tax, assessment, duty or other governmental charge of any nature whatsoever imposed, levied or collected by or on behalf of the country in which DBNCA or DaimlerChrysler AG, as the case may be, is organized, or any political subdivision or taxing authority thereof or therein having power to tax will, not be less than the amount provided for in any such Notes to be then due and payable. INDENTURE DATED Sept. 17, 1996. INTEREST PAYABLE Mar. & Sept. 15, to holder registered 15 day preceding each interest payment date. PRINCIPAL & INTEREST PAYABLE at Depository Trust Co., NYC. INTEREST GRACE PERIOD- 30 days. TRUSTEE- Chase Manhattan Bank, NYC. DENOMINATIONS- Issued in book-entry form in denominations of US$1,000 and multiples thereof, and covered by one or more fully registered Global Securities deposited with, or on behalf of, Depository Trust Co., NYC. If at any time Notes are no longer represented by a Global Security, Notes will be issued in definitive form. OPTIONAL TAX REDEMPTION- Notes may be redeemed in whole but not in part on 30 days' notice at 100 & int. if (a) Daimler-Benz North America Corp. (DBNCA) would be obligated to (i) pay any additional amounts or (ii) Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 7 account to any taxing authority in the country in which DBNCA is organized for any amount (other than any tax withheld or deducted from interest payable on the Notes) in respect of any payment made or to be made on the Notes, (b) DaimlerChrysler AG would be unable, for reasons outside of its control, to procure payment by DBNCA without such additional amounts being payable or being required to account as aforesaid and in making such payment itself would be required to pay additional amounts as provided in the Indenture or to account as aforesaid or (c) DaimlerChrysler AG would be required to deduct or withhold amounts for or on account of any taxes of whatever nature imposed or levied by or on behalf of the country of DBNCA or DaimlerChrysler AG in making any payment of any sum to DBNCA required to enable DBNCA to make a payment in respect of such Notes or to account to any taxing authority in the country in which DBNCA is organized for any amount calculated by reference to the amount of any such sum to be paid to DBNCA. GUARANTEED unconditionally and irrevocably as to the payment of principal, (premium, if any), interest and any additional amounts by DaimlerChrysler AG. SECURITY- A direct unsecured obligation. LISTED- NYSE Nov. 13, 1996; OTC bid prior thereto: 1997 ..................................No Sale 1996....................... 103.75 99.875 STOCK DATA DAIMLER-BENZ AG (5 3/4%) AMERICAN DEPOSITARY NOTES (representing Subord. Mandatory Conv. Notes due June 14, 2002): PAYMENTS- 5 3/4% American Depositary Notes, representing Subord. Mandatory Conv. Notes due June 14, 2002, entitle the holder to US$4.58 per annum payable semi-annually each May & Nov. 15. NOTE- Subject to certain exceptions and limitations, if any withholding or deduction for or on account of any taxes or other duties shall be imposed, levied or collected by or in the Federal Republic of Germany, Co. will pay such Additional Amounts as may be necessary in order that Note holders receive the same amounts of principal and interest on the Notes they would have received had no such withholding or deduction been made. INTEREST PAYABLE at Depository Trust Co., NYC. INTEREST GRACE PERIOD30 days. TRUSTEE- Citibank, N.A., NYC. DENOMINATIONS- Issued in book-entry form in denominations of US$79.67 and multiples thereof and covered by one or more Global Receipts deposited with, or on behalf of. Depository Trust Co., NYC. If at any time the Notes are no longer represented by Global Receipts, Notes will be issued in definitive form. SECURITY- A direct unsecured obligation, subordinated in liquidation, bankruptcy, composition or other proceedings to avoid bankruptcy to the claims of all other creditors of Co. which are not also subordinated. CONVERTIBLE AT THE HOLDER'S OPTION through June 4, 2002 (if called for redemption for tax reasons, through the tenth Frankfurt Business Day prior to the redemption date) into 0.86631 Ord. share (as adjtd.). The exercise of the conversion right shall be excluded during any of the following periods: (i) in connection with any shareholders' meeting of Co., a period commencing on the last day for the deposit of Ord. shares in order to participate in the shareholders' meeting and ending on the third Frankfurt Business Day Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 8 following such shareholders' meeting, both dates exclusive; (ii) a period of 14 days before the end of Co.'s fiscal year; and (iii) a period commencing on the date on which an offer by Co. to its shareholders to subscribe for shares, warrants on Co.'s shares or bonds with conversion or subscription rights or obligations is published in a newspaper designated as a publication in which such announcements must be made by one of the German stock exchanges where the Ord. shares are admitted for trading, or in the German Federal Gazette, whichever is earlier, and ending on the last day of the subscription period, both dates inclusive. Fractional shares will be settled in cash. Conversion privilege is protected against dilution, as defined. Terms of the conversion privilege should be checked in detail. MANDATORY CONVERSION- On June 14, 2002, each Note will be converted mandatorily into Ord. shares at a rate equal to: (i) if the Maturity Price is greater than or equal to DM 150.87, 0.86631 Ord. share per Note; (ii) if the Maturity Price is less than DM 150.87, but is greater than DM 104.04, such number of Ord. shares per Note which results from dividing DM 130.70 (the Nominal Amount) by the Maturity Price; or (iii) if the Maturity Price is less than or equal to DM 104.04, 1.25625 Ord. shares per Note-- all adjtd. for the merger of Daimler-Benz AG and Chrysler Corp. into DaimlerChrysler AG, Nov. 12, 1998. Maturity Price means the average of the official quotation of the Ord. shares on the Frankfurt Stock Exchange during the 20 trading days immediately prior to June 8, 2002, rounded to the nearest 10 Pfennig. DIVIDENDS- Daimler-Benz AG Ord.: 1988-90, DM 12.00; 1991-92, DM 13.00; 1993, DM 8.00; 1994, DM 11.00; 1995, nil; 1996, DM 1.10, plus 10-for-l split June 28; 1997, DM 1.60. STOCK PRICE- LISTED- Ord. NYSE (Symbol DCX) Oct. 26, 1998; also listed Frankfurt SE, and traded Chicago, Pacific, Phila., London, Paris, Montreal, Toronto, Swiss, Vienna, Tokyo and other German SEs: 1998.....................99 1/16 74 1/2 --Daimler-Benz AG Ord. (German prices follow)-- 1997. . . ................161.80 103.90 *1996.......... .......... 105.50 72.46 1995... ................761.20 607 1994 ............................... 904 689 1993... ....................... 850 1991. . . ....................... 802 530 1/2 501 1992....................... 816.80 500.60 *Adj td. for 10-for-l split June 28. EARNINGS AND FINANCES AUDITORS- KPMG Deutsche Treuhand-Gesellschaft, Frankfurt. CONSOL. EARNS. of Daimer-Benz AG, Y-E Dec. 31: Mil. (U.S. GAAP) Gross Oper. Oper. Depr. & Revs. Inc. Amort. 1997............................................................................................. 124,050 DM 9,532 7,521 Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 9 1996............................................................................................. 106,339 6, 992 6, 929 1995............................................................................................. 103,549 1,726 7,431 al995...........................................................................................102, 985 1,201 6, 929 1994............................................................................................. 104,075 5,843 7,676 1993................................................................................................99, 494 d653 8,059 1992............................................................................................. 100,879 4,538 7,085 1991................................................................................................98,566 5,914 5, 977 1990................................................................................................88,383 4,957 5,169 1989................................................................................................ 80,552 N.R. N.R. 1988................................................................................................75, 637 N.R. N.R. @Inc. *Net *Sh. Earns (DM) Taxes Inc, Basic Dltd, 1997.......................... ................cr3,982 8,042 15.59 15.30 1996.......................... ..................... cr712 2,762 5.35 5.35 1995.......................... ..................... 1,015 d5,734 dll.17 dll.17 al995....................... d5,729 dill.17 -- 1994 .......................... ..................... 1,182 895 21.57 -- 1993.......................... .......................... 515 615 12.92 -- 1992.......................... .......................... 586 1991.......................... ..................... 1,039 1990.......................... .....................1,814 1,451 2,486 1,795 30.50 40.20 36.20 -- -- -- 1989.......................... ..................... 3,287 1988 .......................... ..................... 3,495 6, 809 1,702 N.R. N.R. -- -- *ADS Earns. ($) Conv. Rate Basic Dltd. Per $ (DM) 1997.......................... .8.66 8.50 1.80 1996........................................................................................................3.48 3.47 1.54 1995..................................................................................................... d7.81 d7.81 1.43 al995...................................................................................................... -- 1994 ........ ....... ....... 1993....................................................................................................... 1992............................................................................................................... ....... ....... 1991............................................................................................................... ....... ....... 1990........................................................................................................ -- 1989............................................................................................................... ....... ....... 1988 ....................................................................................................... ........ ....... ....... dDeficit. *Bef. extraord. item: (Mil. DM) 1991, dr544. Sh. earns, are as reported by Co. ADS earns are based on avge. shs. (each ADS represents 1 ord. sh.). @Incls. taxes, other than inc. prior to 1990. aRestated. Note: In February 1997, the Financial Accounting Standards Board issued FASB #128 'Earnings Per Share.' This statement replaces the previous standard APB Opinion #15, 'Earnings per Share.' Effective for periods ending after December 15, 1997, FASB #128 requires companies to report both 'basic' and 'diluted' earnings per share. 'Basic' earnings per share does not include the addition of common stock equivalents to the shares outstanding. 'Diluted' earnings per share requires the addition of common Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 10 stock equivalents to the shares outstanding. Average shares outstanding is the denominator used in 'basic' earnings per share calculations. Accordingly, 'basic' earnings per share will be higher than 'diluted' earnings per share. Note: Effective. Nov. 1998 Daimler Benz AG (DBA) acqd. Chrysler Corp.; Transaction was acctd. for on a pooling-of-interest basis. Subsequent to the acquisition the newly combined comapany changed its name to DaimlerChrysler AG (Co.). Pro forma results reflect this transaction as if it had occurred on Jan. 1 '95. ADJUSTED EARNS, for adjtd. for June ' 96 10-for-1 stk. split: $ 1995 dll.17 1994 2.16 1993 1.29 1992 3.05 1991 4.02 1990 3.62 dDeficit. CONSOL . EARNS, of Chrysler Corp., Y-E Dec. 31: Mil. $ aGross Oper. bOper. @Depr. Fxd #Tms. Revs. Inc. & Amort. Chgs . Earns. 1997. . 58,622 5,734 2,696 1,200 4.64 1996. . 59,333 7,347 2,312 1,163 6.10 1995. . 51,190 4,659 2,220 1,199 3.71 1994 . . 50,736 7,223 983 937 7.22 1993. . 42,260 4,977 969 1,104 4.48 1992. . 35,501 2,512 969 1, 405 1.74 1991. . 28,162 2,524 644 2,031 0.42 1990. . 29,797 3,902 781 2,598 0.96 1989. . 34,922 5,669 721 2,968 1.29 1988. . 31,884 5,367 617 2,592 1.62 Inc. *Net *-Sh. Earns.- Taxes Inc. Basic Dltd. 1997 . . ............. 1,752 2,805 4.15 4.09 1996. . ............. 2,372 3,720 5.03 5.00 1995. . ............. 1,328 2,121 5.55 5.35 1994 . . 1993. . ............. 2,117 ............. 1,423 3,713 2,415 10.11 6.77 9.10 -- 1992. . 1991. . 1990. . 1989. . 1988 . . .................. 429 ............. cr272 ..................... 79 ............. :.237 .................. 642 505 d538 68 359 1,050 1.47 d2.22 0.30 1.55 4.66 1.49 -- -- -- -- dDeficit. *Bef . cum. effect of acctg. change (Mil. $): 1991, dr257 or $1.06; 1992, cr218 or $0.74 ($0.64 dltd.); 1993, dr4,966 or $14.39; 1995, dr96 or $0.25 ($0.24 dltd.) . Also bef. extraord. item (Mil. $): 1996, drl91 or $0.26 ($0.26 dltd.). Also, incls. results fr. discontd. opers. (Mil. $): 1989, 44 or $0.19. Sh. earns, are as reported by Co. @Excls. amort, of special tools prior to '92. Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 11 -On a pre-tax basis. aNet sales prior to '89. bTotal income prior to 192. Note: In February 1997, the Financial Accounting Standards Board issued FASB #128 'Earnings Per Share.' This statement replaces the previous standard APB Opinion #15, 'Earnings per Share.' Effective for periods ending after December 15, 1997, FASB #128 requires companies to report both 'basic' and 'diluted' earnings per share. 'Basic' earnings per share does not include the addition of common stock equivalents to the shares outstanding. 'Diluted' earnings per share requires the addition of common stock equivalents to the shares outstanding. Average shares outstanding is the denominator used in 'basic' earnings per share calculations. Accordingly, 'basic' earnings per share will be higher than 'diluted' earnings per share. ADJUSTED EARNS, of Chrysler Corp. for June '96 2-for-l stk. split: $ 1995 2.68 1994 5.06 1993 3.39 1992 0.74 1991 dl.ll 1990 0.15 1989 0.78 1988 2.33 RESTATED EARNS, of Chrysler Corp., Y-E Dec. 31: Mil. $ (Reflects discontd. opers.) Gross -Net Income- Oper. Contng. Opers. Discontd. Opers. Revs. Fr. Amt. *Per Sh. Amt. *Per Sh. 1988..................................34,148 1,003 4.45 *As reported by Co. 47 0.21 FINANCIAL STATEMENTS Annual Report- Consol. Inc. Acct. of Daimer-Benz AG Yrs. Mil. DM (U.S. GAAP) 1997 1996 1995 Revenues.................................... .................. 124,050 106,339 Cost & exps............................ .................. 114,518 99,350 Oper. income.......................... ....................... 9,532 6, 989 Interest income.................. ....................... 2,289 1,641 Investment income, net. ....................... dr7 00 dr273 Other income, net............. ....................... 1,620 1,402 Total income.......................... .....................12,741 Depr. & amort....................... ....................... 7,521 9,759 6, 926 Interest exp.......................... .............................971 872 Income tax............................... .................. cr3,982 cr712 Minority int.......................... cr89 Net income............................. .....................8,042 2,762 End. Dec. 102,985 101,784 1,201 1,729 384 1,742 5,056 11,105 1,184 crl,620 116 d5,729 Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 12 Com. divds............................................ ................579 Bal. aft. divds............................... ...........7,463 Share earns, (basic).................. ...........15.59 *Share earns, (diluted) 15.30 aADS earns, (basic)..................... ...........$8.66 aADS earns, (diluted)................ ...........$8.50 10 2,752 5.37 5.35 $3.48 $3.47 580 6,309 dll.17 dll.17 d$7.81 d$7.81 Avge. shs. (Mil.):....................... ................528 518 513 dDeficit. *Based on avge. shs., adjtd. for June '96 10-for-l stk. aBased on avge. shs. (each ADS represents 1 ord. sh.), converted at the rate of DM1.80 per $1 in 1997, DM1.54 per $1 in 1996 and DM1.43 per $1 in 1995. Note: In February 1997, the Financial Accounting Standards Board issued FASB #128 'Earnings Per Share.' This statement replaces the previous standard APB Opinion #15, 'Earnings per Share.' Effective for periods ending after December 15, 1997, FASB #128 requires companies to report both 'basic' and 'diluted' earnings per share. 'Basic' earnings per share does not include the addition of common stock equivalents to the shares outstanding. 'Diluted' earnings per share requires the addition of common stock equivalents to the shares outstanding. Average shares outstanding is the denominator used in 'basic' earnings per share calculations. Accordingly, 'basic' earnings per share will b< higher than 'diluted earnings per share. Consol. Bal. Sheet of Daimer-Benz AG Dec. 31: Mil. DM Assets- 1997 1996 Cash.....................................................................................................................55,,8833 4,557 Mktble. secs............................................................................................1144,,6687 9,783 Receivables, net..................................................................................5500,,181 38,875 Inventories...............................................................................................1144,,3390 13,602 Investments...................................................................................................33,,4453 3,536 *Net property................................................................................... 20.2, 065,6656 18,225 Leased property.....................................................................................1144,,9931 11,941 Intangibles...................................................................................................11,,9915 1,951 Defr. inc. tax......................................................................................1100,,462 9, 603 Other assets.........................................................................................._.._.._.._...559911 388 Total assets...................................................................................137,099 112,461 Liabilities-.................................................................................................. Accruals...................................................................................................... 36,618 34,886 Financial liabs...................................................................................39, 302 28,850 Trade liabs.............................................................................................. 11,079 9, 027 Defr. income.............................................................................................. 1,726 1,324 Defr. taxes................................................................................................ 2,003 2,253 Other liabs.............................................................................................. 10,116 8,792 Minority int.............................................................................................. 1,170 936 @Com. stk. p.DM5....................................................................................2,584 2,577 Paid-in cap.................................................................................................5,247 5, 080 Retained earns...................................................................................... 26,508 19,033 Other stockholders equity..................................................................746 dr297 Total liabs..................................................................................... 137,099 112,461 Equity per sh............................................................................................64.16 47.46 Copr. West 1999 No Claim to Orig. U.S. Govt. Works *Depr. & amort, res...................................................... @Com. shs. (Mil.):......................................................... Note: Consol. Inc. Acct. of Chrysler Corp 1997 1996 1995 Revs, from manufactured products .......................... 56, 986 Revs, from financial services.............................................................. 1, 636 Gross oper. revs..................................58,622 Cost & exps................................................... 52,888 Oper. income..................................................... 5,734 Other income..................................................... 2,525 Total income..................................................... 8,259 Depr. & amort.................................................. 2,696 Interest exp.................................................... 1,200 Capitalized int.............................................crl94 Income tax......................................................... 1,752 Inc. bef. extraord. item & cum. effect of acctg. change..................................................2,805 Extraord. item............................................................ Cum. effect of acctg. change........................................................................ ........ Net income...................................................2,805 Pfd. divds.................................... 1 Com. divds.......................................................... 1,095 Bal. aft. divds............................................. 1,709 Share earns, (basic):....................................... Bef. extraord. item & acctg. change............................................ $4.15 Extraord. item....................................................... Acctg. change................................................. ........ Net income.......................................................4.15 *Share earns. (diluted):................................................................... Bef. extraord. item & acctg. change............................................. $4.09 Extraord. item....................................................... Acctg. change................................................. ........ Net income.......................................................4.09 Avge. com. & com. equiv. shs. (Mil.):........................................ 685 Fixed Charges Coverage:...................................................................... Avail, for Fxd. Chgs................................5,563 Gross Fxd. Chgs............................................. 1,200 F.C. Tms . Earn.................................................. 4.64 F.C. & Pfd. Divds. Tms. Earn............................................................... 4.63 dDeficit. . .48,720 47,006 ...........517 515 Yrs. End. Dec. 31: Mil. $ 57,587 1,746 59,333 51,986 7,347 2,064 9,411 2,312 1,163 crl56 2,372 49,601 1,589 51,190 46,531 4,659 2,005 6,664 2,220 1,199 cr204 1,328 3,720 adrl91 3,529 3 960 2,566 2,121 @dr96 2,025 21 689 1,315 $5.09 dr0.26 4.83 $2.81 drO.13 2.68 $5.00 drO.26 4.74 744 7,099 1,163 6.10 6.09 $2.68 drO.12 2.56 792 4,444 1,199 3.71 3.64 Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 14 *Based on avge. com. & com. equiv. shs., after pfd. divds. adjtd. for June '96 2-for-l stk. split. QReflects adoption of Emerging Issues Task Force Issue 95-1, 'Revenue Recognition on Sales with a Guaranteed Minimum Resale Value.' aFrom early extinguishment of debt. Note: In February 1997, the Financial Accounting Standards Board issued FASB #128 'Earnings Per Share.' This statement replaces the previous standard APB Opinion #15, 'Earnings per Share.' Effective for periods ending after December 15, 1997, FASB #128 requires companies to report both 'basic' and 'diluted' earnings per share. 'Basic' earnings per share does not include the addition of common stock equivalents to the shares outstanding. 'Diluted' earnings per share requires the addition of common stock equivalents to the shares outstanding. Average shares outstanding is the denominator used in 'basic' earnings per share calculations. Accordingly, 'basic' earnings per share will be higher than 'diluted' earnings per share. Note: Results for 1997 included net costs of $364 million from the impact of an 29 day strike and $41 million charge to discontinue Chrysler's Eagle brand, partially offset by recognition of $60 million of defr. profits from the sale of vehicles from Chrysler to Dollar Thrifty Automotive Group. Note: At Dec. 31 '97, Co. had avail, net oper. loss carryforwards of $52,000,000. Note: Consol. Bal. Sheet of Chrysler Corp Dec. 31: Mil. $ Assets- 1997 1996 Cash & equiv........................................................................... . .4,898 5,158 Mktble. secs........................................................................... . .2,950 2,594 Accts. rec., net................................................................. . .1,646 2,126 Inventories............................................................................. . .4,738 5,195 Finance receivables......................................................... .13,518 12,339 *Net property........................................................................ .17,968 14,905 Special tools........................................................................ . .4,572 3, 924 Intangibles............................................................................. . .1,573 1,995 Other assets........................................................................... . .8,555 7,948 Total assets........................................................................ 60,418 56,184 Liabilities- Short-term debt................................................................... . .3,841 3,214 Curr. debt mat...................................................................... ..2,638 2,998 Accts. pay................................................................................ ..9,512 8,981 Accruals.......................... ........................................................... . .9,717 8,864 Long-term debt...................................................................... ..9,006 7,184 Postretirement liabs...................................................... ..9,841 9,431 Other liabs............................................................................. ..4,501 3, 941 @Pfd. stk. p.$1................................................................... ____ Nil Nil aCom. stk. p.$l................................................................... ____ 823 822 bTreas. stk............................................................................. dr5,297 dr3,209 Paid-in cap............................................................................. ..5,231 5,129 Retained earns...................................................................... Total liabs........................................................................... .10,605 60,418 8,829 56,184 Equity per sh........................................................................ .$15.09 $13.59 *Depr. res............................................................................. .9,114 8,147 Copr. West 1999 No Claim to Orig. U.S. Govt. Works Page 15 @Pfd. shs. (Mil.):. aCom. shs. (Mil.):. bTreas. shs. (Mil.) Com......................................... 0.020 . .823 175 0.040 822 119 Pro Forma Report- Consol. Inc. Acct. Yrs. End. Dec. 31: Mil. DM (U.S. GAAP) 1997 1996 1995 Revenues............................................... ____ 229,255 Cost & exps....................................... ____ 219,593 Oper. income.................................... ............. 9,662 Interest income, net................ .................. 869 Other income.................................... ............. 1,620 Total income.................................... ...........12,151 Income tax......................................... Minority int.................................... Net income....................................... ____ 12,906 Share earns, (basic)................ ............. 13.29 *Share earns, (diluted) 13.16 Avge. shs. (Mil.):..................... .................. 984 dDeficit. 198,082 189,009 9, 073 652 1,402 11,127 2,857 cr89 8,359 8.44 8.41 994 178,551 183,786 d5,235 1,203 1,742 d2,290 283 116 d2,689 d2.64 d2.64 1,019 *Based on avge. shs. Unaudited. Note: Effective. Nov. 1998 Daimler Benz AG (DBA) acqd. Chrysler Corp.; Transaction was acctd. for on a pooling-of-interest basis. Subsequent to the acquisition the newly combined comapany changed its name to DaimlerChrysler AG (Co.). Pro forma results reflect this transaction as if it had occurred on Jan. 1 '95. Note: In February 1997, the Financial Accounting Standards Board issued FASB #128 'Earnings Per Share.' This statement replaces the previous standard APB Opinion #15, 'Earnings per Share.' Effective for periods ending after December 15, 1997, FASB #128 requires companies to report both 'basic' and 'diluted' earnings per share. 'Basic' earnings per share does not include the addition of common stock equivalents to the shares outstanding. 'Diluted' earnings per share requires the addition of common stock equivalents to the shares outstanding. Average shares outstanding is the denominator used in 'basic' earnings per share calculations. Accordingly, 'basic' earnings per share will be higher than 'diluted' earnings per share. Note: Co. reported the following results for the year ended Dec. 31 '97, translated into U.S. dollars at the rate of DM1.8033 per $1: (Thou. $) Yr. End. Dec. 31: 1997 Revenues......................................................................................................................................127,131 Copr. West 1999 No Claim to Orig. U.S. Govt. Works Net income....................................................................................................................................... 7,158 Share earns, (basic)............................................................................................................ $7.37 Share earns, (diluted)....................................................................................................... $7.30 Avge . shs . (Mil.):........................................................................................................................ 984 Note: Co. reported the following pro forma results for the 6 mos. end. June 30 '98: (Mil. DM) 6 Mos. End. June 30: 1998 Revenues....................................................................................................................................... 128,308 Net income....................................................................................................................................... 5,721 Share earns, (basic)............................................................................................................... 5.96 Share earns, (diluted)..........................................................................................................5.83 Avge. shs. (Mil.):........................................................................................................................ 985 aConsol. Bal. Sheet June 30 '98 Mil. DM AssetsCash & equiv................................................................................................................................19,694 Mktble. secs................................................................................................................................24,240 Receivables, net..................................................................................................................... 86,402 Inventories.................................................................................................................................. 22,181 Investments................................................................................................................................... 5,7 99 Net property................................................................................................................................57,559 Leased property........................................................................................................................ 27,393 Intangibles..................................................................................................................................... 4,653 Other assets................................................................................................................................19,541 Total assets........................................................................................................................ 267,462 Liabilities-...................................................................................................................................... Accruals.......................................................................................................................................... 73,382 Financial liabs.......................................................................................................................79, 343 Defr. liabs.................................................................................................................................. 12,837 Other liabs.................................................................................................................................. 41,081 Minority int.................................................................................................................................. 1,108 @Ord. stk. n.p. & Paid-in cap....................................................................................20,242 Retained earns.......................................................................................................................... 38,342 Other stockholders equity............................................................................................... 1,127 Total liabs.......................................................................................................................... 267,462 Equity per sh................................................................................................................................54.88 @Ord. shs. (Mil. ).............................................................................................................. 1,003 aUnaudited. RECENT FINANCIAL STATEMENTS(Also see RECENT NEWS for more information) DAIMLERCHRYSLER AG DATE: 990225 EVENT: Annual Earnings (ANE) TITLE: Annual Earns.: Dec. '98 Consol. Inc. Acct.: Mil. Euro $ Years Ended Dec. 31: Revenues 1998 131,782 1997 117,572 Copr. West 1999 No Claim to Orig. U.S. Govt. Works Net income 5,221 4,057 *Sh. earns.: Euro $5.58 Euro $4.28 *As reported. Note:Results were reported by Co. before merger costs in 1998 and special pay-out of DM20 per share in 1997. Including these items net income would be Euro 4.8 billion for 1998 and Euro 6.5 billion for 1997. NoterCo. reported the following results for 1998 in U.S. dollars: revenues, $154.6 billion. Net income, $6.1 billion. Share earnings, $6.54. FIELDED ANNUAL REPORT DATA ----------------------------------------------------- Income Account, German Mark Year End 12/97 NET SALES/REVENUE 124,050,000 COST AND EXPENSES 114,518,000 OPERATING INCOME 9,532,000 INTEREST INCOME 2,289,000 OTHER INCOME 920,000 TOTAL INCOME 12,741,000 DEPRECIATION & AMORT. 7,521,000 FIXED CHARGES 971,000 MINORITY INTEREST-INCOME 189,000 INCOME TAXES - EXPENSE -3,982,000 NET INCOME 8,042,000 (000's) ----------------------------- 12/96 12/95 106,339,000 102,985,000 99,350,000 101,784,000 6,989,000 1,201,000 1,641,000 1,729,000 1,129,000 2,126,000 9,759,000 5,056,000 6,926,000 11,105,000 872,000 1,184,000 -89,000 116,000 -712,000 -1,620,000 2,762,000 -5,729,000 i\33C^hi f Year End CASH AND EQUIVALENT RECEIVABLES INVENTORIES INVESTMENTS - ASSET NET PROPERTY LEASED PROPERTY INCOME TAX - ASSET INTANGIBLES OTHER ASSETS TOTAL ASSETS berman waiK ^uuu 1 s~ \) .. . 12/97 12/96 5,833,000 4,557,000 50,181,000 38,875,000 14,390,000 13,602,000 18,140,000 13,319,000 20,656,000 18,225,000 14,931,000 11,941,000 10,462,000 9,603,000 1,915,000 1,951,000 591,000 388,000 137,099,000 112,461,000 U 1 LJj X u X X XC3 f Year End ACCRUALS - LIABILITY INCOME TAXES - LIABILITY DEFERRALS MINORITY INTEREST - LIAB. OTHER LIABILITIES COMMON STOCK CAPITAL SURPLUS U C XIIlu 11 ri L X K 12/97 36,618,000 2,003,000 1,726,000 1,170,000 60,497,000 2,584,000 5,247,000 \ UUU S ) 12/96 34,886,000 2,253,000 1,324,000 936,000 46,669,000 2,577,000 5,080,000 Copr. West 1999 No Claim to Orig. U.S. Govt. Works OTH. STKHLDR.EQUITY ITEMS RETAINED EARNINGS TOTAL LIABILITIES ACCUMULATED DEPRECIATION 746,000 26.508.000 137,099,000 48.720.000 -297,000 19.033.000 112,461,000 47.006.000 FINANCIAL RATIOS Year End TOTAL LIABS./NET WORTH (%) FIXED ASSETS/NET WORTH (%) COLLECTION PERIOD (DAYS) NET SALES/INVENTORY TOTAL ASSETS/NET SALES (%) RETURN ON SALES (%) RETURN ON ASSETS (%) RETURN ON NET WORTH (%) 12/97 307.5 62.3 148 8.621 110.5 6.5 5.9 24.2 12/96 352.1 74.6 133 7.818 105.8 2.6 2.5 11.3 END OF DOCUMENT Copr. West 1999 No Claim to Orig. U.S. Govt. Works