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DaimlerChrysler more upbeat on future financial results

DaimlerChrysler has announced it anticipates better than expected third quarter results.

At the time of its second quarter results at the end of July, DaimlerChrysler indicated that, as is traditional within the industry, the company would expect the third quarter to be weaker than the second quarter (2001 Q2: euro 725 million/ £448m). Nevertheless, for the third quarter DaimlerChrysler will report a positive Operating Profit without one-time effects (2000 Q3: euro 540 million/£333m).

These results have been influenced by a better than expected performance at Chrysler Group, reflecting, the company says, the strong continued efforts to improve the profitability and efficiency of the business, which have been more than sufficient to offset any weakness in sales.

Elsewhere within the Group DaimlerChrysler anticipates an operating performance broadly in line with original expectations.

The market outlook for the remainder of the year, in particular in the United States but also in the other main markets, has however become more difficult to predict. The company's own assessment of sales trends across the group indicates that it is too early to accurately assess the impact of the terrorist attacks in New York and Washington on DaimlerChrysler's financial performance this year and next.

In February 2001 DaimlerChrysler announced an Operating Profit target of euro 1.2 billion (£740m) to euro 1.7 billion (£1.1 billion). Until September 11 the company was confident that it would achieve this target. Under the changed circumstances this target might be “at risk”.

DaimlerChrysler will announce its third quarter results on October 23.

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