Despite weak demand, DaimlerChrysler expects its Commercial Vehicles division to significantly improve its financial performance this year.
The company noted that a continued soft North American market for new trucks kept Freightliner sales low in the first quarter. Unit sales of Mercedes-Benz Trucks were down 15% from a year ago. However, the company noted it its first quarter earnings report that incoming orders are beginning to show a positive trend.
First quarter operating losses for the division fell from 138 million euro ($121.5 million) a year ago to 85 million euro first quarter 2002. DaimlerChrysler said the improvement was due mainly to lower charges from Freightliner. It also noted that Freightliner’s turnaround plan is running according to schedule, and $400 million of the planned $450 million savings this year is “already certain.”
The Mercedes-Benz Passenger Cars and smart division sold 292,500 vehicles in
the first quarter of 2002, exceeding the prior year's high level. Revenues were up 7% and operating profit was close to the prior year’s level. The Chrysler Group's retail sales were down 7%, due a generally weak U.S. economy and increased competition.
Excluding one-time charges and gains, DaimlerChrysler reported net income for all divisions of 500 million euro ($450 million) compared to a net loss of 400 million euro in first quarter 2001. First quarter revenues were 36.9 billion euro ($32.4 billion), up 7% from a year ago.
DaimlerChrysler said first quarter markets generally developed better than expected and there are increasing signs that the positive trend might continue. Nevertheless, it cautioned that unstable political situations in some regions could have a negative impact on the beginning of worldwide economic recovery.
The company noted that a continued soft North American market for new trucks kept Freightliner sales low in the first quarter. Unit sales of Mercedes-Benz Trucks were down 15% from a year ago. However, the company noted it its first quarter earnings report that incoming orders are beginning to show a positive trend.
First quarter operating losses for the division fell from 138 million euro ($121.5 million) a year ago to 85 million euro first quarter 2002. DaimlerChrysler said the improvement was due mainly to lower charges from Freightliner. It also noted that Freightliner’s turnaround plan is running according to schedule, and $400 million of the planned $450 million savings this year is “already certain.”
The Mercedes-Benz Passenger Cars and smart division sold 292,500 vehicles in
the first quarter of 2002, exceeding the prior year's high level. Revenues were up 7% and operating profit was close to the prior year’s level. The Chrysler Group's retail sales were down 7%, due a generally weak U.S. economy and increased competition.
Excluding one-time charges and gains, DaimlerChrysler reported net income for all divisions of 500 million euro ($450 million) compared to a net loss of 400 million euro in first quarter 2001. First quarter revenues were 36.9 billion euro ($32.4 billion), up 7% from a year ago.
DaimlerChrysler said first quarter markets generally developed better than expected and there are increasing signs that the positive trend might continue. Nevertheless, it cautioned that unstable political situations in some regions could have a negative impact on the beginning of worldwide economic recovery.
media brand
0 Comments
See all comments