DaimlerChrysler earnings fall

DaimlerChrysler left investors guessing about plans to return excess cash to shareholders as the German car maker reported second…

DaimlerChrysler left investors guessing about plans to return excess cash to shareholders as the German car maker reported second-quarter operating profits today in line with market expectations.

Earnings before interest and tax fell to €2.13 billion in the quarter from €2.37 billion a year earlier, when it had booked a one-off gain worth over 800 million.

Revenue slipped to €23.8 billion from €24.6 billion in the year-earlier quarter.

The sale in May of an 80.1 percent stake in Chrysler and its North American financial services business for €5.5 billion has pushed the company -- to be renamed Daimler AG in October if shareholders agree -- out of the world's 10 biggest car makers by sales.

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But the move has also cut its exposure to gyrating earnings at Chrysler.

DaimlerChrysler said it now anticipated a charge against earnings of €2.5 billion in 2007 as a consequence of the Chrysler sale. This is less than the estimate of €3-4 billion it had made in May.