Daimler, Chrysler See Gain in Profits

Daimler-Benz and Chrysler Corp. expect their combined profits to jump 24% next year as they benefit from cost savings following Daimler’s $42-billion acquisition of the third-largest U.S. auto maker later this year. Daimler, Europe’s biggest manufacturer, said it expects earnings before taxes and interest of the new DaimlerChrysler to rise to $11.3 billion in 1999 from $9.1 billion this year. Daimler estimated its own operating earnings will rise to $5.1 billion in 1999 from $3.5 billion this year, and that Chrysler’s will rise to $6.2 billion from $5.6 billion. The estimates mark the first time Daimler, maker of Mercedes-Benz, has quantified the expected gain. They also demonstrate why the Daimler and Chrysler combination is putting pressure on other car makers around the world to forge their own alliances.