Chrysler 2002 Annual Report Download - page 6

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Lastly, negative results reported by companies in which the
Group holds equity investments and the writedowns required
to mark to market the equity securities held by the insurance
companies also contributed to the consolidated loss.
It is important to keep in mind, however, that the
extraordinary charges recognized in the financial statements
will require only modest cash outlays in future years.
As stipulated in the agreements with the lending banks,
the Group used capital increases, asset divestitures and a
decrease in working capital requirements to achieve a
substantial reduction in net borrowings.
At a meeting held on February 28, 2003, the Board of
Directors accepted the resignation of Group Chairman Paolo
Fresco and appointed a new Chairman, Vice Chairman and
Chief Executive Officer.
Overview
Dear Stockholders:
The substantial loss incurred for the year is the result
of two factors: the disappointing operating results reported
by the Automobile Sector, which were offset only in part by
the positive performance of other Sectors, and even more
significantly, the burdensome costs that had to be shouldered
to restore the Group to health and help it regain forward
momentum.
Notable among these costs were the charges incurred to
restructure the Group’s industrial operations, especially those
of Fiat Auto. The extraordinary provisions booked to adjust the
carrying value of our assets to reflect changing market conditions
also had an impact on the bottom line. Additional sacrifices
were required due to divestitures, which produced a net loss
that was caused primarily by the sale, at market prices, of the
General Motors shares held by the Group.
Report on Operations