Troubled car maker DaimlerChrysler has beaten market expectations with its second-quarter results helped by a stronger-than-expected performance at its loss-making US Chrysler unit, sending the stock higher.
The group, grappling with an overhaul of its US activities aimed at returning Chrysler to profit in 2002, said today that its second-quarter adjusted operating profit fell 72 per cent to euro 725 million from euro 2.6 billion a year ago.
The world's second-largest car maker according to market capitalisation also said it was on track with its overhaul and reiterated its goal of making a full-year adjusted operating profit of euro 1.2-1.7 billion.
"We are on schedule with our stated milestones," chief executive Mr Juergen Schrempp said in a conference call.
Chrysler's troubles had raised questions about Mr Schrempp's future at the group as his expansionist strategy appeared to have backfired, but most market watchers now believe he has some breathing space.
Several banks have upgraded the stock recently amid increasing confidence that it will achieve recovery.
The company said losses at Chrysler narrowed to euro 148 millionin the second quarter from a loss of euro 1.4 billionin the first quarter, significantly better than expected. The unit made a profit of euro 1.16 billion a year ago.
Mercedes-Benz, one of the company's main profit drivers, posted a 10 per cent rise in its second-quarter adjusted operating profit to euro 830 million.