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DaimlerChrysler achieves $1.45 billion Q3 group operating profit, net loss of $1.9 billion

DaimlerChrysler achieved an operating profit of $1.45 billion (Q3 2002: $1.8 billion) in the third quarter of 2003. Positive earnings from all of the group's divisions, including Chrysler, contributed to this result, but net income shrank to $-1.9 billion, prompting S&P to downgrade DCX's credit rating a notch to 'BBB', a ranking now shared by all the US 'Big Three'.

In accordance with US GAAP and the SEC, an impairment charge of $2.28 billion was recognized with effect as of September 30 on the Group's holding in EADS. Net income decreased, mainly due to the impairment, to $-1.9 billion (Q3 2002: $0.9 billion); without this effect net income would have been $0.4 billion.

Despite “a challenging automobile environment, particularly in North America and Western Europe”, DaimlerChrysler sold 1.1 million vehicles worldwide in the third quarter (Q3 2002: also 1.1 million). Due to the appreciation of the euro against the US dollar and lower unit sales, DaimlerChrysler's total revenues of $40.3 billion were 5% lower than a year earlier quarter. Adjusted for exchange-rate effects, there was an increase of 3%.

Mercedes Car Group's operating profit of $924 million equalled the result of the third quarter 2002 despite expenditures for the further preparation of the group's second product offensive. After a loss in the second quarter, Chrysler Group returned to positive figures, with an operating profit of $171 million (Q3 2002: $355 million).



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