DaimlerChrysler Profits up 12% in '05

DaimlerChrysler reported 2005 profits of $3.3 billion yesterday, up about 12% from 2004. According to the company, its Chrysler and DaimlerChrysler commercial divisions helped the company override a $601 million operating loss at Mercedes, where an extensive revamping effort has begun. For the fourth quarter, the company had net income of 966 million euros ($1.15 billion), up 84% percent from a year earlier. Profit for the period rose 10% to 41.5 billion euros.
DaimlerChrysler's full-year results are in contrast to those reported by its main U.S. rivals, General Motors and Ford. Last year, G.M. lost $8.6 billion, largely through its North American operations, and Ford earned $2 billion, but also lost money in North America. Both have announced significant cutbacks. Last month, DaimlerChrysler announced plans to cut 20% of its global white-collar staff over the next three years, or about 6,000 jobs. The cuts will save the automaker about $1.2 billion a year. In a conference call yesterday, however, DaimlerChrysler executives declined to predict company performance for 2006 until results from its Mercedes improvements are known.