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News > International
Competition hits Daimler 1Q
April 19, 2000: 6:18 a.m. ET

German-US carmaker says profit at Chrysler unit down 7% as Mercedes rises
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LONDON (CNNfn) - Intense competition in North America took a bite out of DaimlerChrysler's first-quarter earnings, the automaker said Wednesday, although the German-U.S. company sold more vehicles than in the prior-year period.
    Revenue for the three months ended Mar. 31 jumped 17 percent to 41 billion ($39.2 billion), but operating earnings slipped 3 percent to 2.45 billion from 2.53 billion a year ago. Net income rose 3 percent to 1.69 billion due to the effect of one-time items, and earnings per share rose a similar amount to 1.69. graphic
    "The results were a little disappointing, toward the bottom of expectations," commented Gavin Launder, an auto analyst at Warburg Dillon Read in London. "There's no reason to panic for the full year," added the analyst, who predicted a near 10 percent increase in 2000 earnings per share to 6.70.
    The shortfall came at the Chrysler car and truck division, which reported a 7 percent slide in operating profit to 1.4 billion even though it shipped 923,600 vehicles, an increase of 10 percent, and raised revenue 10 percent to 19.0 billion. The company blamed increased competition and the cost of introducing new products. It warned that competitive pressures would remain stiff.
    Chrysler's crucial minivan is due to be replaced later this year, which analysts said should boost profits further down the line.
    Growth at Mercedes-Benz passenger cars remained in the fast lane during the period. Vehicle sales rose 7 percent to 260,000 units, revenue rose 17 percent to 9.9 billion and operating profit gained 11 percent to 591 million, even as the company incurred launch costs for the new version of the medium-sized C-class model. DaimlerChrysler pointed out that orders in Germany alone were raining in at 1,200 a day. The C-class will contribute to earnings from the second quarter, but should kick in fully in the second half of the year.
    "From today's perspective we anticipate a further increase in earnings per share for the full year," Chairman Jrgen Schrempp said in a statement.
    The company is due to publish more details of its quarterly earnings on May 3.
    Daimler (FDCX) stock fell 1 percent to 67.60 in Frankfurt Wednesday morning. Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.