DaimlerChrysler lifts earnings,but disappoints markets

28th October 2004, Comments 0 comments

28 October 2004 , STUTTGART - DaimlerChrysler said that despite a collapse in profitability at its flagship Mercedes Car Group, it improved earnings in the third quarter, but stock markets were disappointed. The German-American automaker posted an operating profit of EUR 1.3 billion, a gain of 7 percent from a year earlier. In Stuttgart, it added that the full-year figure would be "significantly" above last year's net EUR 5.1 billion. On the Frankfurt Stock Exchange, DaimlerChrysler stock fell 0.6 percent

28 October 2004

STUTTGART - DaimlerChrysler said that despite a collapse in profitability at its flagship Mercedes Car Group, it improved earnings in the third quarter, but stock markets were disappointed.

The German-American automaker posted an operating profit of EUR 1.3 billion, a gain of 7 percent from a year earlier. In Stuttgart, it added that the full-year figure would be "significantly" above last year's net EUR 5.1 billion.

On the Frankfurt Stock Exchange, DaimlerChrysler stock fell 0.6 percent in a rising market to EUR 32.55. Investors had hoped for better.

Net income for the quarter to September rose to EUR one billion, a sharp turnaround from the net loss of EUR 1.7 billion in the matching quarter a year ago and more that double the entire net income for 2003.

Operating profit for the first nine months rose 51 percent to EUR five billion.

Mercedes Car Group was held back by the high cost of model changes and investment to improve quality after numerous complaints that the luxury cars' sophisticated electronics often seized up unaccountably.

Its operating profit sagged 62 percent from the prior-year quarter to EUR 304 million and the group sold 256,600, or 17,000, fewer cars as Germany's long slump put buyers off big-ticket purchases. German sales were off 13 percent in the quarter.

Chrysler, formerly the group's problem division, improved operating profit rose from EUR 147 million a year before to EUR 217 million, bringing nine-month earnings to EUR one  billion, a far cry from the loss of EUR 650 million in the period a year ago.

Sales of Chrysler cars were up 3 percent to 651,900 units.

DPA

Subject: German news
 

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