DaimlerChrysler increases EBIT to €2,041 million in Q1 2007
Muamer Hodzic May 16, 2007
DaimlerChrysler increased its EBIT to €2,041 million in the first quarter of this year (Q1 2006: €1,181 million). Earnings were reduced particularly by restructuring expenses related to the implementation of the Chrysler Group’s Recovery and Transformation Plan (€914 million). There were additional charges from the financial support provided to troubled suppliers (€120 million) and the implementation of the new management model (€54 million). Income of €1,563 million, however, was realized in connection with DaimlerChrysler’s equity interest in EADS, partially offset by expenses of €114 million from the Power8 restructuring program at EADS.
In the prior-year quarter, the discontinuation of the smart forfour and headcount reductions at the Mercedes Car Group caused expenses of €1,185 million. There were opposing effects from the disposed off-highway business (€238 million) and from reductions in healthcare benefits at the Chrysler Group (€390 million).
Improved operating results at the Mercedes Car Group and the Truck Group largely offset the decline in earnings at the Chrysler Group.
This is a great sign that the company is in an upswing; once Chrysler is gone, the losses will be less, and the earnings will be significantly larger.
