DaimlerChrysler on Wednesday reported an 11
percent slump in operating profit in 2000, citing heavy losses by
its U.S. arm Chrysler.
While markets were surprised by the German-American automaker's
preview of its annual data ahead of an official announcement set
for later this month, the figures were in line with analysts'
expectations, given Chrysler's woes in recent months. No quarterly
figures were released Wednesday.
DaimlerChrysler said net earnings rose 37 percent last year
compared to 1999, but its operating profit of $9.1 billion was down
11 percent. After taxes and interest, the net profit came out to
$7.3 billion off of $151 billion in sales, an 8 percent increase.
With one-time gains factored out, 2000 operating profit
plummeted 49 percent to $4.8 billion, and net profit 44 percent to
$3.25 billion, the company said. Those gains last year included the
sale of a majority stake in the company's services arm, debis
Systemhaus, to German telecommunications giant Deutsche Telekom.
DaimlerChrysler's share value has plunged by more than half
since early 1999 shortly after the merger. Much of the decline
stems from a $512 million third quarter loss at Chrysler last year
and from expectations that Chrysler will post a fourth-quarter loss
of more than $1 billion, due to a downturn in the U.S. auto market.
DaimlerChrysler has insisted it has no plans to spin off or sell
Chrysler. But the drop in the company's value has triggered planned
job cuts at Chrysler and speculation that DaimlerChrysler makes an
attractive hostile takeover target by another major automaker.
Speculation grew last week when Deutsche Bank confirmed
DaimlerChrysler had given the bank a mandate to prepare a defense
strategy.
DaimlerChrysler's proposed dividend remains unchanged at $2.18,
said the company, which is based in Stuttgart, Germany, and Auburn
Hills, Mich.