DaimlerChrysler Profit Up

DaimlerChrysler on Thursday posted improved financial results for the fourth quarter and all of 2005, largely because of higher revenue and profit from its Chrysler unit.

But the results reflected lower sales of its Mercedes-Benz and Smart families of autos, and executives said competitive pressures in the U.S. and other car markets posed a continuing challenge for the world’s fifth-largest automaker.

“DaimlerChrysler expects an improvement in profitability in 2006, with continuous increases in operating profit during the following years,” Chief Executive Dieter Zetsche told reporters.

The German-American automaker said it was optimistic that sales of its Mercedes-Benz cars and new Chrysler models would increase through 2006 but said a major restructuring in Germany made exact figures difficult to estimate.

The company, which is based in Stuttgart, Germany, and Auburn Hills, Mich., earned 966 million euros ($1.15 billion), or 95 euro cents ($1.13) a share, in the quarter that ended Dec. 31, compared with 526 million euros, or 52 euro cents a share, a year earlier. Revenue rose 10% to 41.5 billion euros ($49.9 billion) from 37.7 billion euros.

Shares of DaimlerChrysler fell $2.12 on Thursday to $57.68.