DaimlerChrysler Q3 optimism

Cost savings linked to personnel reductions at Chrysler were the driving force behind DaimlerChrysler's better-than-expected results in the third quarter. It has announced an operating profits of €4.7 billion on group sales of €113 billion. That is a considerable improvement on the year-earlier result of just €781 million of operating profit.

On the back of this improvement, the company has raised its full-year profit forecasts to over €5 billion.

DaimlerChrysler also confirmed that a pension fund deficit of around €5.5 billion, subject to future stock market performance, would require the firm to make a pre-tax provision of as much as €600 during 2003, but without adverse effect on operating profit.