DaimlerChrysler news lifts shares 5.4% Higher earnings and sales forecast by European giant

Auto industry

December 29, 1998|By BLOOMBERG NEWS

STUTTGART, Germany -- DaimlerChrysler AG shares rose 5.4 percent yesterday after the maker of cars, trucks and aerospace equipment said it will report higher 1998 earnings and sales helped by robust economies in Europe and the United States.

DaimlerChrysler rose 8.55 deutsche marks ($5.09) in Frankfurt to close at 166.35 marks, a new high since the stock began trading Nov. 17. Daimler-Benz AG completed a $36 billion takeover of Chrysler Corp., the No. 3 U.S. automaker, in November to form DaimlerChrysler.

Europe's biggest manufacturer said it expects 1998 combined sales to climb 13 percent to $148 billion from $127.1 billion last year and profit to be "significantly higher" than 1997's combined $6.26 billion. Germany-based DaimlerChrysler said it hoped to save an annual $3 billion within three years and $1.4 billion in 1999 through increased buying power.

The shares also set a closing high in New York trading, rising $4.0625, or 4.3 percent, to $98.25. The stock is traded on multiple exchanges worldwide.

DaimlerChrysler will report quarterly earnings to satisfy U.S. reporting standards. The German company used to report earnings every six months. The sales growth estimate made by the company may also signal that it is intent on releasing financial information earlier than German investors have been used to.

Pub Date: 12/29/98

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