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DaimlerChrysler reports stronger than expected performance

DaimlerChrysler has reported better-than-expected second-quarter results, and said its turnround programme was on track.

The company, which is in the middle of restructuring its US Chrysler division, reported adjusted operating profit for the quarter of £433m, down from £1.6bn a year ago, but above analyst expectations of about £238m.

The figure marks a return to profitability from the first quarter, when the car group had reported an adjusted operating loss of £372m.

Losses, excluding one time effects, at the Chrysler unit narrowed to £61m, from £854m in the first quarter, again beating expectations. The unit's performance continues to be affected by high US industry marketing costs and a decline in unit sales, DaimlerChrysler said.

The group said its turnround programme for Chrysler and Mitsubishi Motors, its Japanese partner, was on track.

For the full year, DaimlerChysler said it expected Mercedes-Benz, one of its more profitable, units, and Smart cars to exceed the previous year's high sales, revenues and earnings.

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