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DaimlerChrysler outfoxes analysts.

DaimlerChrysler's first-quarter earnings before interest and tax (EBIT) jumped 73 per cent to 2.04 billion euros (pounds 1.39 billion), handily beating market expectations despite another big loss at Chrysler Group.

In its first detailed outlook for the year, the German car firm forecast yesterday that its 2007 EBIT would rise to seven billion euros (pounds 4.78 billion) excluding the impact from selling Chrysler.

Analysts polled had on average expected EBIT of 1.545 billion euros (pounds 1.05 billion) in the three months to the end of March.

The world's fifth-biggest motor manufacturer, which announced on Monday it was selling a majority stake in Chrysler to private equity group Cerberus Capital Management, was reporting under IFRS accounting standards for the first time.

Mercedes Car Group swung to a better-than-expected EBIT of 792 million euros (pounds 541 billion). It reiterated its forecast of generating an operating margin of at least seven per cent this year.

Chrysler Group lost 1.49 billion euros (pounds 1.01 billion) before interest and tax in the quarter, twice as bad as expected, after restructuring costs of 914 million euros (pounds 624 million). Group net profit advanced 152 per cent to 1.97 billion euros (pounds 1.34 billion).
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Title Annotation:Business
Publication:The Birmingham Post (England)
Date:May 16, 2007
Words:206
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