Troubled car maker DaimlerChrysler today gave investors some long-awaited good news by beating its own and analysts' forecasts for its first-quarter operating loss.
The auto giant, grappling with a costly $4 billion overhaul of its loss-making US Chrysler unit, posted an adjusted operating loss of euro 610 million in the three months to March 31st, compared with a profit of euro 2.45 billion a year ago.
Earlier this month, it said it expected a first quarter loss of between euro 800 million and euro one billion.
"The numbers are slightly better than expected but they are not so good that they guarantee the success of the restructuring programme, and for that reason we remain neutral on DaimlerChrysler," said Mr Hans-Joachim Koenig, fund manager with Union Investment in Germany.
Operating profit for Mercedes-Benz cars and its compact Smart cars rose 13 per cent to euro 670 million.
DaimlerChrysler'srestructuring plan envisages euro 1 billion savings in material costs, euro 500 million in plant costs and euro 700 million from fixed costs in 2001.
The overhaul includes the loss of 26,000 jobs or 20 per cent of the workforce at Chrysler over three years and the closure of six plants.