DaimlerChrysler Beats Expectations as Revenues Jump - TheStreet

DaimlerChrysler Beats Expectations as Revenues Jump

The automaker forecasts strong profit growth in the fourth quarter as well.
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Tuesday reported strong third-quarter results, topping Wall Street's earnings expectations as revenue expanded strongly.

The Street showed little reaction, with shares rising 7/8, or 1.2%, in early trading.

For the third quarter ended Sept. 30, the company reported net income of $1.6 billion, or $1.61 a share, on revenue of $38.6 billion. For the year-ago quarter, earnings were $1.41 billion, or $1.45 a share, on revenue of $33.4 billion. Analysts surveyed by

First Call/Thomson Financial

forecast earnings of $1.40 a share. The company didn't make available diluted earnings per share.

"There's synergies in there," Robert J. Eaton, co-chairman of the company, said in a news conference. "The syngeries primarily are in our passenger car and truck divisions." DaimlerChrysler was created last year in the merger of Germany's




of Detroit.

The company credited especially strong growth in sales of


cars, saying it made $754 million in profit from its so-called


division, up 40% from the year-ago quarter on revenue growth of just 15%.

The company predicted strong growth for the year, boosted by trimmer operations as the company continues adjusting to the merger. It will take losses as it attempts to shore up the loss-making smart and


units and Latin American operations.

"We have been able to increase our performance in commercial vehicles but clearly at a significant loss," Eaton said of Latin America. "We will not turn around until the market turns around."

Revenue for


, the company's aeronautics unit, fell 2%, but the company said it has strong incoming orders for commercial airplanes and helicopters. The unit plans to join the French

Aerospatiale Matra

and the Spanish


to form a new European aeronautic, defense and space company. DaimlerChrysler will be a 30% shareholder.

The announcement follows strong earnings reports from


(F) - Get Report


General Motors

(GM) - Get Report

, which both beat analysts' expectations for the quarter. Third quarters are typically the worst for auto companies because of design schedules.