Chrysler Swings to 2003 Loss
DaimlerChrysler
(DCX)
said its Chrysler Group swung to a $637 million loss in 2003, weighed down by a big restructuring charge and weak car demand.
The division earned about $800 million in 2002. Thursday's disclosure came in a larger release covering the Stuttgart, Germany, automaker's results, which, as previewed earlier in the month, showed group 2003 operating earnings of $7.2 billion compared with $8.6 billion in 2002, and 2003 net income of $600 million, or 55 cents a share.
Chrysler Group's 2003 results include a $591 million restructuring charge related to a two-year-old turnaround plan; before that, the division lost $47 million in the full year, despite turning an unspecified profit in the fourth quarter.
Worldwide, Chrysler Group sold 2.64 million vehicles in 2003, compared with 2.82 million in 2002. Division revenue fell to $62.1 billion in 2003 from $75.8 billion in 2002, reflecting currency translation, lower unit sales and increased customer incentives.
The parent company said it's "striving to achieve a slight increase in operating profit in 2004" compared with 2003, excluding restructuring charges and a gain at MTU Aero Engines. It predicted "significantly improved earnings in 2005 and 2006, when the new vehicles from the divisions' current product offensives will all be available."
DaimlerChrysler shares closed Wednesday at $46.89, down 11 cents, or 0.2%.