DaimlerChrysler stalls

February 6, 2002 Posted: 1547 GMT

NEW YORK (CNN/Money) -- DaimlerChrysler's 2001 profit badly missed Wall Street expectations, the world's No. 3 automaker said Wednesday, but added that 2002 profit should improve.

The company, which announced preliminary results Wednesday, said 2001 earnings excluding items will be 65 cents a share, well below Wall Street forecasts of 74 cents, according to earnings tracker First Call.

Operating profit excluding items was $1.2 billion, within the company's target range of $1.1 billion to $1.5 billion announced last February.

Including items, the company posted a net 2001 loss of $600 million, or 59 cents a share.

Revenue totaled $136.1 billion in 2001, about flat with a year earlier, the company said.

Additionally, DaimlerChrysler (DCX: Research, Estimates) said 2002 profit will exceed twice the 2001 level by a "significant amount."

Nevertheless, doubling 2001 profit means earnings of $1.30 a share, still far short of the Wall Street consensus forecast of $1.87, according to First Call.

Investors dumped Daimler shares, sending the stock down 3.24 percent on the New York Stock Exchange early Wednesday.

The company also said it will cut its dividend to 1 a share from 2.35, compared with expectations of around 1.50.

Automakers have been pinched in the last year as they rolled out zero-percent financing deals that bolstered sales in a slumping economy at the expense of margins, which ultimately hurt profits.

DaimlerChrysler said it plans to disclose full 2001 results Feb. 20.