DaimlerChrysler Up on Lower Than Expected Charges, Despite 14% Q2 Net Decline

DaimlerChrylser reported Q2 net income fell 14% to €1.85b euros ($2.5B, or $2.36/share), as sales were off 3% to €23.8B euros ($32.24B). The company said it will take a €2.5B euro ($3.38B) charge from transferring an 80.1% stake of Chrysler to private equity firm Cerberus, compared to earlier estimates of $4B to $5B. DaimlerChrysler said it expects EBIT of approximately €8.5B euros for the new Group company for the full-year 2007, compared to €5.0B euros in 2006. In its second-half outlook, DaimlerChrysler said it expects the global auto industry's expansion to slow year-over-year, primarily due to slightly falling demand in N. America, W. Europe and Japan. However, significant increases in demand are expected in emerging markets in Asia, Latin America and E. Europe. NYSE-listed shares of DaimlerChrysler were last up 0.8% to $85.04 in thin pre-market trading, after losing 2.1% to $84.34 on Tuesday.

Sources: Press release, MarketWatch
Commentary: Automakers Lower 2007 Forecasts; Toyota Delays New Hybrid ・Cerberus Plays Executive Musical Chairs At Chrysler; Bob Nardelli New CEO ・The Quotable Bob Nardelli: What His Appointment Means For Chrysler
Stocks/ETFs to watch: DAI. Competitors: GM, F, TM, HMC, NSANY. ETFs: EWG, DPC

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