DaimlerChrysler CEO: Mercedes group set to meet '07 sales goals

Associated Press |HANOVER, Germany - - DaimlerChrysler AG Chairman Dieter Zetsche said Tuesday that the company's Mercedes Car Group division is set to reach its target of 7 percent return on sales in 2007.

The company is "absolutely convinced to deliver," he told analysts and investors during a telephone conference at the International Commercial Vehicles Show in Hanover.

Last year, the division posted a loss, with a minus 1 percent return on sales — a benchmark for measuring operating profitability — amid wide-ranging restructuring and lackluster demand for key models like the Mercedes-Benz E-Class and C-Class.

In the first half of 2006, Mercedes Car Group's return on sales was 0.5 percent, he said.

On Friday, DaimlerChrysler issued a profit warning following weaker-than-expected results at its Chrysler Group division, but noted that its other divisions, including Mercedes Car Group, were "fully in line with planning."

Vehicle sales at the division, which comprises the Mercedes-Benz, Maybach and Smart brands, are up 11 percent on the year in the first eight months, Zetsche said.

However, Mercedes car group's chief operating officer, Rainer Schmueckle, said that he expects some obstacles during the rest of this year and next, such as exchange rates risks and high raw material prices for steel and aluminum.

Shares of DaimlerChrysler ended flat at €38.82 (US$49.12) in Frankfurt trading.


HANOVER, Germany DaimlerChrysler AG Chairman Dieter Zetsche said Tuesday that the company's Mercedes Car Group division is set to reach its target of 7 percent return on sales in 2007.

The company is "absolutely convinced to deliver," he told analysts and investors during a telephone conference at the International Commercial Vehicles Show in Hanover.

Last year, the division posted a loss, with a minus 1 percent return on sales — a benchmark for measuring operating profitability — amid wide-ranging restructuring and lackluster demand for key models like the Mercedes-Benz E-Class and C-Class.

In the first half of 2006, Mercedes Car Group's return on sales was 0.5 percent, he said.

On Friday, DaimlerChrysler issued a profit warning following weaker-than-expected results at its Chrysler Group division, but noted that its other divisions, including Mercedes Car Group, were "fully in line with planning."

Vehicle sales at the division, which comprises the Mercedes-Benz, Maybach and Smart brands, are up 11 percent on the year in the first eight months, Zetsche said.

However, Mercedes car group's chief operating officer, Rainer Schmueckle, said that he expects some obstacles during the rest of this year and next, such as exchange rates risks and high raw material prices for steel and aluminum.

Shares of DaimlerChrysler ended flat at €38.82 (US$49.12) in Frankfurt trading.