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Daimler posts strong 3Q
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October 26, 1999: 3:30 p.m. ET
Carmaker posts 11% earnings gain, easily topping analysts' forecast
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NEW YORK (CNNfn) - DaimlerChrysler reported better-than-expected results for its third quarter Tuesday, boasting a net income gain of 11 percent to $1.6 billion.
The world's fifth-largest automaker said quarterly earnings jumped to $1.61 per share from $1.45 a year ago. The company handily beat analysts' expectations from First Call, who had forecast $1.40 per share
Chrysler reported that operating profit grew 11 percent to nearly $1.1 billion, and the company's Mercedes and Smart divisions soared 40 percent to $754 million. Sales of Chrysler vehicles rose 19 percent to $16.14 billion, while Mercedes saw a 15 percent sales gain to $9.76 billion.
"The merger is over," said Co-chairman Jurgen Schrempp. "We are now one company. It shows that we are delivering what we promised, that we are on the right track."
Merrill Lynch analyst Steven Reitman in London liked the third-quarter numbers.
"Chrysler had terrible second-quarter figures," Reitman told CNNfn. "That really killed the share price. They've learned from their mistakes and come back with very good numbers."
Investors also seemed cheered by the news; by the close of trading Tuesday in Frankfurt, DaimlerChrysler shares rose 2.39 percent, outperforming the DAX index and European auto sector.
Company Co-chairman Robert Eaton also dangled a bullish fourth-quarter tidbit before stock watchers, saying he expects the last quarter to outperform the auto industry as operating profits grow faster than revenue. 
-- from staff and wire reports
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