DaimlerChrysler beats market forecasts

German auto giant DaimlerChrysler posted third-quarter results today that beat market expectations.

German auto giant DaimlerChrysler posted third-quarter results today that beat market expectations.

The company said it would at least meet the lower end of its 2001 profit forecast range.

The world's third-largest car maker said third-quarter adjusted operating profit climbed to euro 666 million from euro 540 million a year earlier, after a better-than-expected performance from its loss-making US Chrysler unit.

Chrysler, in the middle of a $4 billion restructuring programme expected to return it to profit by 2002, reported an operating loss of euro 267 million, a 54 per cent improvement over the loss of euro 579 million a year earlier.

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The narrower loss, coming on top of a 10 per cent rise in Chrysler sales to euro 11.6 billion, suggests the ambitious cost-cutting programme launched by Chrysler chief Mr Dieter Zetsche is bearing fruit.

Chrysler's two main US rivals, Ford and General Motors, reported heavy losses for the third quarter recently and said prospects for the year ahead were uncertain.

DaimlerChrysler shares have risen some 47 per cent since hitting an eight-year low on September 21st but are still trading at levels last seen in September 1996.