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DaimlerChrysler Is Cautious on 2003

The company reportedly warns of worries, but stops short of altering its earnings outlook.



reportedly said Wednesday that the business environment has deteriorated, but the company stopped short of altering its 2003 earnings outlook.

"It has become much more difficult to reach the targets we have set for ourselves. Nonetheless, we will make every effort to achieve them," said Chairman and Chief Executive Officer Juergen Schrempp at the company's annual meeting in Berlin, according to media reports.

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DamilerChrysler had told shareholders in February that it would boost its operating profit from the $6.25 billion it earned in 2002.

As for the first quarter, the company reportedly said it was encouraged by business, even though its Chrysler division is facing declines in its sales. Meanwhile, DaimlerChrysler said its commercial-vehicles unit is improving its finances amid a recent restructuring.

The company's stock has lost more than two-thirds of its value since the American and German companies merged in 1998. Shares of DaimlerChrysler were up 2% at $33.04 late Wednesday.