Expecting Bigger Chrysler Loss
Automaker DaimlerChrysler AG lowered its 2006 operating profit forecast Friday, saying its Chrysler Group expects a $1.52 billion loss in the third quarter, more than double the amount anticipated.
The German-American automaker said the Chrysler Group will make additional production cuts in the third and fourth quarters to reduce dealer inventories.
The Stuttgart-based company lowered its operating profit forecast for the full year to about 5 billion euros ($6.34 billion), based on an expected full-year loss for the Chrysler Group of 1 billion euros ($1.27 billion).
That includes an operating loss of 1.2 billion euros for the Chrysler Group in the third quarter, wider than the anticipated loss of up to 500 million euros ($633.75 million).
'The Chrysler Group is facing a difficult market environment in the United States with excess inventory, noncompetitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles,' DaimlerChrysler said in a statement.
The German-American automaker said the Chrysler Group will make additional production cuts in the third and fourth quarters to reduce dealer inventories.
The Stuttgart-based company lowered its operating profit forecast for the full year to about 5 billion euros ($6.34 billion), based on an expected full-year loss for the Chrysler Group of 1 billion euros ($1.27 billion).
That includes an operating loss of 1.2 billion euros for the Chrysler Group in the third quarter, wider than the anticipated loss of up to 500 million euros ($633.75 million).
'The Chrysler Group is facing a difficult market environment in the United States with excess inventory, noncompetitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles,' DaimlerChrysler said in a statement.
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