DaimlerChrysler Crystal Ball Cloudy

FRANKFURT February 15,2003; Reuters reported that DaimlerChrysler head Juergen Schremp has declined to give a 2003 earnings outlook for the automaker, citing global business uncertainty and a possible war in Iraq, a German newspaper reported on Saturday.

In an interview with Welt am Sonntag released ahead of publication on Saturday, Schremp said he could not give an outlook for the current business year although he was certain of a continued positive business development.

"I cannot provide an outlook for 2003. The business and political uncertainties are immense but I am convinced that we have the factors we can influence, under control. We will continue our positive development," Schremp said.

Two years ago, DaimlerChrysler set a group adjusted operating profit target of 8.5 billion euros to 9.5 billion euros for 2003, but last year the maker of cars, trucks and buses said it may achieve its goals late due to a weak economic climate.

Earlier this month, DaimlerChrysler posted disappointing fourth-quarter results and gave no 2003 outlook.

The group posted an adjusted operating profit of 1.173 billion euros for the traditionally weak fourth quarter, more than double the year-ago figure, but below a Reuters poll which had given an average forecast of 1.394 billion euros.

Schremp joined a growing chorus of German business leaders expressing their concern over Germany's deteriorating relations with the United States over Berlin's anti-war stance.

"I am very concerned over the current relations between Germany and the U.S. We have had a community of values with the U.S. which has grown for over 50 years," Schremp said.

"Everything possible must be done to maintain this relationship, despite the differences of opinion on the important topic of the Iraq crisis."

Schremp said DaimlerChrysler shares, which have lost around 43 percent since the start of 2002, did not reflect the group's potential.

"Our stock price does not reflect the substance of the business but I am optimistic that we will see it going higher again," he added.