DaimlerChrysler posts lower than expected profits

DaimlerChrysler posts lower than expected profits

DaimlerChrysler AG is the world’s fifth-largest carmaker and they have just posted their revenue reports. The company posted profit gains of 4 percent in the first quarter of the year. This was lower than expected, as they had to spend more than 1 billion euros on turning around the Mercedes division.

DaimlerChrysler’s net income was at 299 million euros. This was up from 288 million euros during the same period last year. Sales were up at 37.2 billion euros, which is a gain of 17 percent compared to figures during the same period last year.

However, they failed to impress the market investors as their stock prices went down by around 5%. Market experts believe that the company is failing to show results of the reorganization process started by its Chief Executive Officer Dieter Zetsche.

The profits were down to 119 million euros from 252 million euros as the company failed to impress enough customers from moving onto competitors like Toyota and General Motors.