DaimlerChrysler posts $363million profit in first quarter

[Kenazo]

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BERLIN (AP) - The automaker DaimlerChrysler AG (NYSECX - news) said Thursday its net profit edged up four per cent in the first quarter as continuing losses at Mercedes offset stronger performances from its financial services and van and bus groups.

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The net profit of 299 million euros ($363 million US) for the January-March period compared with last year's 288 million euros. Sales rose 17 per cent to 37.18 billion euros ($45.1 billion).

The restructuring Mercedes Car Group, troubled by quality problems and losses from the Smart compact car business, showed an operating loss of 678 million euros ($823 million), largely due to heavy one-time charges.

Mercedes' operating results were docked by 982 million euros in charges from the discontinuation of the Smart forfour model, and 203 million euros due to payouts for staff reduction.

Otherwise, the company said, the division would have shown a profit, with new M-Class and B-Class models driving a 16 per cent increase in unit sales to 255,200.

DaimlerChrysler shares fell 3.7 per cent to 44.92 euros ($55.82) in Frankfurt trading.

 

[fbrdphreak]

Originally posted by: Kenazo
as continuing losses at Mercedes offset stronger performances from its financial services and van and bus groups.

Losses in their main car division, profits from financial services (i.e. financing) and bulk sales. Nothing odd here

 

[Kenazo]

Originally posted by: fbrdphreak

Originally posted by: Kenazo
as continuing losses at Mercedes offset stronger performances from its financial services and van and bus groups.

Losses in their main car division, profits from financial services (i.e. financing) and bulk sales. Nothing odd here

Is their Mercedes division bigger than their Chrysler one though? My understanding was that the Chrysler part has been making money hadn over fist for the last few years an kind of limping hte Mercedes brand along.

 

[Gillbot]

Enron!

 

[GTaudiophile]

Ze Germans know whey they're doing?

 

[fbrdphreak]

I don't know about Chrysler, I'd assume they are doing well though. The whole platform of cars built on the 300C have sold really well and I think the T&C and Dodge Ram's have done well also.

My point was that their premier brand was doing poorly and profits were coming from financing (Which Ford has lived off for the past few years) and bulk sales.