November 2001 - Nr. 11
DaimlerChrysler Third Quarter Results Exceed Expectations
Downplays Likelihood of Takeover
TWIG - German auto giant DaimlerChrysler announced better-than-expected third quarter results and reiterated its earnings forecasts for full-year 2001 – despite a challenging economic environment. "The uncertainty in the wake of terror attacks in the U.S. makes the outlook for the rest of the year more difficult," according to the company. The effects are also likely to mute U.S. auto sales and other important markets for the conglomerate.
Overall, the company posted adjusted operating profits of 0.7 billion euros for the third quarter. Car sales held even with year-earlier figures in the period: the Mercedes-Benz division improved sales by a robust 10%, while Chrysler suffered a 6% decline, largely due to market setbacks in the U.S. As expected, commercial vehicles sales in both Europe and the U.S. also took a hit from the September terrorist attacks. Still, for the full year, a slightly improved operating profit is expected. DaimlerChrysler expects revenues to exceed 145 billion euros in 2001; after adjustments, this marks a slight increase year over year.
In a separate statement, DaimlerChrysler finance director Manfred Gentz asserted that, despite the steep slump in the market value of the company (currently about 40 billion euro), a takeover is unlikely. Mr. Gentz saw little chance that a major competitor would be able to tender a successful offer, particularly given anti-trust regulations. Still, he was unwilling to rule out the possibility.
