Net profit falls at DaimlerChrysler, but beats analyst expectations

<br>FRANKFURT, Germany (AP) _ U.S.-German automaker DaimlerChrysler said Wednesday its profit fell 22 percent in the third quarter from a year ago amid difficult market conditions, but its latest results

Wednesday, October 23rd 2002, 12:00 am

By: News On 6

FRANKFURT, Germany (AP) _ U.S.-German automaker DaimlerChrysler said Wednesday its profit fell 22 percent in the third quarter from a year ago amid difficult market conditions, but its latest results beat analysts' expectations.

The world's fifth-largest automaker earned 780 million euros ($764 million) in the July-September period, down from 1 billion euros a year ago, as the automaker struggled with brutal price-cutting competition in the key U.S. market.

But adjusted operating profit rose to 1.7 billion euros ($1.67 billion), more than double the 666 million euros of a year ago. The latest results beat the consensus forecast of 1.2 billion euros of 31 analysts surveyed by Dow Jones Newswires.

The adjusted operating profit figure excludes one-time restructuring expenses, as well as financial items such as interest and taxes. But analysts say the figure enables them to focus on the well-being of the company's core business.

Revenue rose to 36.34 billion euros ($35.70 billion) from 35.99 billion euros a year ago.

``The significant improvement in earnings was achieved despite the challenging environment,'' the company said in a statement.

The company's turnaround program at U.S. arm Chrysler helped the division contribute 325 million euros ($318 million) in operating profits in contrast to a loss of 267 million euros a year earlier. The third-quarter profit was substantially below the profit of 777 million euros reported for the division in the second quarter.