Schrempp: DaimlerChrysler's First Quarter Reinforces 2002 Performance Target

DaimlerChrysler has gotten off to a positive start in the new financial year, according to its Chairman and Chief Executive Officer, Jürgen E. Schrempp. "Based on current information, the first quarter reinforces our earnings forecast for the entire company for all of 2002," Schrempp said in prepared remarks at the Annual Shareholders' Meeting in Berlin. The DaimlerChrysler chairman reaffirmed the expectation that an operating profit of "significantly more than double last year's figure can be achieved this year. This statement still stands." In addition, he said DaimlerChrysler would stand by the statement that was announced in February 2001 for subsequent years. "But, due to projected economic trends, we will only be able to achieve these targets at a somewhat later date," said Schrempp. The performance of the operating units in the first quarter of 2002 was as follows: Based on trends to date, the Mercedes-Benz Passenger Cars and Smart Division had a good first quarter. Despite the difficult market environment and the model change-over of the E-Class sedan, sales were better than planned. Earnings in the first quarter are expected to reach around last year's level. Based on the company's most current information, after six consecutive negative quarters, the Chrysler Group will report slightly positive operating results for the first quarter of 2002. Earnings of the Commercial Vehicle Division are expected to be affected by the difficult market situation, which led to significant production cuts. However, a positive trend is beginning to emerge, with respect to incoming orders vis-a-vis planning. This also holds true for Freightliner.