Cordes: DaimlerChrysler's Commercial Vehicles Unit Has Record First Half

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ANOVER, Germany – DaimlerChrysler AG's commercial vehicles division had a record first half this year, as its North American brands drove the world's largest truck maker's sales and profits, according to Eckhard Cordes, who heads the division.

Cordes, speaking at a press conference before the official opening of the huge bi-annual truck show held here, termed the first six months of 2004 "the best half-year ever," and said the company's results were "being driven by the North America region," namely its Freightliner LLC brand.

For the first six months, Cordes said sales rose 34% to 310,700, while revenue increased 26% to about $19 billion and operating profit rose 174%.

e said the company "was reaping the fruits" of the cost-cutting and efficiency program it embarked upon several years ago, as truck sales plunged, especially in North America following an economic slowdown and difficulties caused by a change in U.S. pollution regulations.

Cordes, who will soon be shifting over to run DaimlerChrysler's Mercedes-Benz auto unit, warned that "skyrocketing" prices for various truck components, led by steel, would soon be reflected in the company's prices to its customers.

While the component price increases are "a considerable burden" for the company, he said he does not expect them to derail the worldwide recovery in truck sales.