DaimlerChrysler Truck Unit’s Profit Drop
aimlerChrysler AG’s truck operating profits dropped, and the company said its 2006 earnings will be hurt by rising interest rates, raw-material and oil prices and more U.S. competition, Bloomberg reported Thursday.
Operating profit at the commercial-vehicle division declined 18% in the fourth quarter to about $425 million from $520 million. The company reports its earnings in euros.
Chief Executive Officer Dieter Zetsche said market conditions are “very, very difficult,” and that the company needs to make advances with productivity and efficiency.
DaimlerChrysler, parent of leading U.S. truck maker Freightliner LLC, said in late January it will restructure its management and will rename its commercial vehicles division under the name Truck Group. (Click here for previous coverage.)Overall Daimler Chrysler fourth-quarter net income rose to $1.15 billion or 95 cents a share, from $626 million or 52 cents a year earlier on gains in vehicle financing and Chrysler sales, Bloomberg reported.
Revenue rose 9.8% to about $50 billion.
