DaimlerChrysler has seen modest growth in first-quarter profits, held back by the $1.
04-27-06, 08:09 PM
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DaimlerChrysler has seen modest growth in first-quarter profits, held back by the $1.
Despite a 16% rise in Mercedes-Benz car sales, the division saw an operating loss of $843 Million due to the costs of revamping its loss-making Smart brand.
The news sent Daimler shares tumbling by 4% during Thursday trading.
Daimler is in the process of cutting 15,000 jobs in a bid to reduce costs and improve competitiveness.
recovery signs
Away from the restructuring costs at its smart division, there are signs that Daimler chief executive Dieter Zetsche's reorganisation is having an affect.
The whole group sold 1.15 million cars worldwide between January and March, up 6% on the same period in 2005, and total revenues rose by 17% to $46 Billion.
But in the US a price war in the tough North American market hammered profits at its Chrysler division, which wast more than halved despite a 4% increase in vehicle sales.
Looking forward, the group said it expected vehicle sales to remain static in 2006, at the 4.8 million units it sold last year.
The news sent Daimler shares tumbling by 4% during Thursday trading.
Daimler is in the process of cutting 15,000 jobs in a bid to reduce costs and improve competitiveness.
recovery signs
Away from the restructuring costs at its smart division, there are signs that Daimler chief executive Dieter Zetsche's reorganisation is having an affect.
The whole group sold 1.15 million cars worldwide between January and March, up 6% on the same period in 2005, and total revenues rose by 17% to $46 Billion.
But in the US a price war in the tough North American market hammered profits at its Chrysler division, which wast more than halved despite a 4% increase in vehicle sales.
Looking forward, the group said it expected vehicle sales to remain static in 2006, at the 4.8 million units it sold last year.
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