DaimlerChrysler 4Q Profit Slides

Associated Press

Associated Press 02.14.07, 8:06 AM ETAuto maker DaimlerChrysler AG on Wednesday said fourth-quarter earnings plunged 40 percent on weaker demand from its Chrysler brand autos.

Net income dropped to $761 million, or 74 cents per share, from $1.28 billion , or $1.25 per share, in the year-earlier quarter.

Revenue slipped to $53.7 billion from $54.7 billion, as sales of Chrysler vehicles fell 7 percent, offsetting a 5 percent rise in sales of Mercedes models.

The company said it sold 4.7 million vehicles in 2006, down from 4.8 million in 2005. DaimlerChrysler (nyse: DCX - news - people ) said it expects total unit sales to rise slightly this year, with revenue remaining roughly flat.

DaimlerChrysler shares rose $3.07, or 4.8 percent, to $67.52 in premarket activity.