Handelsblatt reports that corrections to forecasts for Chrysler’s performance are behind the recent profit warning issued by DaimlerChrysler.
Go deeper with GlobalData
Almost a year ago, DC set an operating-profit target of 5.5-6.5 billion euros for full-year 2002. But at the start of this month, the group said its operating profit for 2002 would be ‘clearly more than 2.6 billion euros’.
Since then, analysts have been looking for an explanation to this de facto profit warning – especially as the outlook for the trouble Chrysler unit has been relatively upbeat of late.
The German newspaper says that it has learned from people ‘familiar with the situation’ that group chief Jürgen Schrempp had internally been expecting Chrysler to post a profit of ‘hundreds of euros this year’.
However, it seems that Schrempp was, with this forecast, underestimating the demand difficulties on the US car market. But since the forecast was never made public, there was never a need to revise it publicly.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
Handelsblatt says that Schrempp’s last public statement on the prospects for Chrysler in 2002 was actually made in February 2001. At that time he said the unit would post a profit of “more than zero”.
DaimlerChrysler’s full figures for 2001 will be released on Wednesday, February 20th.
