DaimlerChrysler to warn
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July 24, 2000: 12:18 a.m. ET
Report: Automaker will issue profit warning for rest of 2000, exec to depart
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NEW YORK (CNNfn) - DaimlerChrysler officials are expected to lower profit estimates for the rest of the fiscal year when the automaker announces second-quarter results Wednesday, according to The Wall Street Journal.
The U.S.-German automaker expects to meet the second-quarter consensus earnings estimate of $1.52 per share, according to First Call, but analysts have already trimmed their fiscal year estimates to $6.12 per share from $6.20, the Journal report said.
Poor performance by the company's U.S. operation, which has been forced to offer price cuts to attract customers, has escalated marketing costs, the report said.
"It's not easy times," a company official told the Journal. "There's a lot of difficult waters ahead."
The company is also expected to announce this week the resignation of treasurer Thomas Capo, who, according to company sources, is frustrated with "the direction" DaimlerChrysler is headed.
Shares of DaimlerChrysler (DCX: Research, Estimates) closed Friday down 13/16 to 55-1/16 and are less than 10 percent above their yearly low of 51-13/16.
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