Thursday, July 27, 2006

Daimler Chrysler Reports Earnings

DaimlerChrysler Doubles Its Profits
By NICK BUNKLEY, New York Times (link to full article: HERE)

"DETROIT, July 27 — Higher sales of Mercedes Benz cars helped DaimlerChrysler double its second-quarter profits, despite a slump at Chrysler that the automaker warned would worsen in the months ahead.
The company said today that operating income rose 11 percent from the comparable period a year ago, reaching 1.86 billion euros ($2.4 billion), even though it sold 3 percent fewer vehicles, or 1.3 million in all.
DaimlerChrysler, which is cutting thousands of jobs in Germany, reported overall net income of 1.8 billion euros ($2.3 billion), up from 737 million euros ($942 million) in the second quarter of 2005. Much of the net profit came from a revaluation of the company’s stake in the European Aeronautic Defense and Space Company, parent of the jet manufacturer Airbus.
The results show considerable progress in the company’s efforts to rejuvenate its Mercedes unit, but growing problems at Chrysler, the American division, as it prepares to introduce new models later this year. The Chrysler Group’s operating profits fell by 91 percent in the quarter to $65 million; DaimlerChrysler’s chief executive, Dieter Zetsche, forecast that next quarter would be much worse for the group, with Chrysler expected to lose as much as $639 million.
But Mr. Zetsche said that Chrysler would rebound in the fourth quarter, as new models like the 2007 Dodge Nitro, Chrysler Sebring and Jeep Patriot arrive in showrooms. The unit will make money for the full year, he said...."

7/27/2006 10:36:00 PM

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