Automaker earnings up 3 percent

Thursday, April 20, 2000 | 11:33 a.m.

DaimlerChrysler AG surpassed Wall Street expectations Wednesday with a 3 percent increase in first-quarter earnings, but excitement was tempered by declining profit margins in North America and an ever-shrinking stock price.

Speaking at the company's annual shareholder meeting, Chairman Juergen Schrempp said DaimlerChrysler was feeling the squeeze of competitors slashing prices in the United States to snag customers for high-profit minivans and sport utility vehicles.

Despite declining profit margins at the German-American company, it said overall net income was up 3 percent in the first three months of 2000 to 1.69 billion euros ($1.62 billion), or 1.69 euros ($1.62) a share. That compares to 1.64 billion euros ($1.6 billion), or 1.64 euros ($1.57) a share, in the same period a year ago.

Revenues for the quarter also rose 17 percent, to 40.9 billion euros ($39.2 billion) from 34.9 billion ($33.5 billion).

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