DaimlerChrysler released its first earnings statement after its adopted baby left the nest to be raised by a three-headed dog. The Q2 result – a 14% drop in profit and 3% dip in revenue compared to the same period last year. The real DC explains that the profit drop is due to artificially inflated gains last year from selling a stake in Airbus owner EADS.
DaimlerChrysler expects to take less of a hit from transferring 80% of Chrysler to Cerberus, at around $3.4 billion instead of the $4 to $5 billion originally braced for. The Company will be allowed to sell a loan to Cerberus next August, and date again.
DaimlerChrysler Ag (NYSE: DAI) is up 1% in pre-market trading.
In other auto news, French car maker Renault denied that it was interested in Volvo. Renault Chairman Carlos Ghosn commented that a Volvo in French hands would be left untended and that the company “doesn't need a new [Volvo]. What it needs is new products and technology, and a good shower. It is not a question of principle, but one of good sense."
Ford keeps flashing its Swedish tended Volvo around for others to ogle, along with its other luxury brands Jaguar and Land Rover as part of a turnaround strategy.
Renault’s outlook is upbeat, as it doesn’t think it can sink any lower in the European market. Actually it thinks it can slip a bit lower, but after slipping a remaining little bit, things have nowhere to go but up! Everyone has to hit the ground sometime, right? From MarketWatch:
Ghosn said he expects Renault's share of the European market to have bottomed out later this year and that it should start rising again in 2008, thanks to a 26-model new product offensive that started in June with the launch of a new Twingo city car and as sales of the Laguna lift off in October.