Skip to main content
Publish date:

Loss Forecast Drives Down DaimlerChrysler

The company expects its U.S. operation to lose more than $1 billion in the second quarter.

Shares of



were lower a day after the company said its U.S. unit would post a loss of more than $1 billion in the second quarter amid tremendous efforts to stay competitive in the auto industry.

The Chrysler Group will also probably fall short of the company's prior full-year profit targets.

Additionally, DaimlerChrysler reportedly plans to go ahead with an offering of $2.5 billion of five-year notes, even though it said Tuesday it would withdraw the offer. The issue had already been priced.

Shares of DaimlerChrysler were lately down 98 cents, or 3.1%, to $30.67. Several brokerage firms came out Wednesday with negative comments on the company.

The company's forecast came on the heels of its May sales report. DaimlerChrysler, along with

General Motors

TheStreet Recommends

(GM) - Get General Motors Company (GM) Report



(F) - Get Ford Motor Company Report

, posted

tepid sales last month as the incentives the carmakers have been using to bring buyers onto lots seem to have lost some of their effectiveness.

Chrysler's car sales were 5% below last year and truck sales fell 3%.

DaimlerChrysler wasn't the only straggler among the automakers, as shares of GM and Ford were also trading lower in afternoon

New York Stock Exchange