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Daimler's cash runs out
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January 10, 2001: 3:42 p.m. ET
Industrial cash reserve hit zero at end of 2000, though overall reserves still OK
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NEW YORK (CNNfn) - German automaker DaimlerChrysler AG told U.S. analysts at a meeting Wednesday that its industrial cash reserves fell to zero at the end of last year, but insisted the company's overall financial position is still sound.
There had been reports late last year of a drop in the automaker's cash reserves due to the losses at its Chrysler Group, the U.S. unit that lost money in the third quarter and is expected to see losses continue through the fourth quarter and into the current year.
The company said its net liquidity for its industrial business fell to zero from  6.0 billion, or about $5.7 billion, Sept. 30, and from 10.9 billion a year earlier.
Still, the company said its overall gross liquidity remained at 12 billion, down from 14.8 billion at the end of the previous quarter and 16.9 billion at the end of 1999.
"Gross liquidity remains sound, net liquidity continues to reflect U.S. industry dynamics," the company's slide presentation to analysts said.
The company said besides the Chrysler losses, acquisitions hurt cash reserves in 2000. The company agreed to buy a one-third stake in Mitsubishi Motors for $1.9 billion last fall. But it is not expecting to make any significant acquisitions this year.
The company said that while debt rating agencies have downgraded it recently, it still has an investment-grade debt rating. Reuters reported Wednesday that the company is preparing to sell $7.1 billion of global bonds, which is $3.1 billion more than originally planned.
Shares of the American depositary receipts of DaimlerChrysler (DCX: Research, Estimates) lost $2.48 to $41.76 in afternoon trading Wednesday, after shares of its stock lost 2 to close Frankfurt trading at 44.
-- Reuters contributed to this report 
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