Chrysler Woes Hurt Profit at Parent Firm

Automaker DaimlerChrysler said its profit tumbled in 2003 as its U.S. division, Chrysler, struggled and the company made several large one-time deductions from earnings.

The U.S.-German company said Wednesday that it earned $564 million in 2003, down from $5.1 billion in 2002.

Large one-time charges cut into profit, including $2.5 billion for the fallen value of its 33% stake in European Aeronautic Defense & Space Co., and $569 million for restructuring costs at Chrysler.

Sales for the year fell 7% to $171.9 billion, which the company attributed to the weaker U.S. dollar. Otherwise, revenue would have risen 3%, it said.

The firm said it would give more detailed results Feb. 19. Operating earnings fell 16% to $7.1 billion, near the average analyst forecast of $7.2 billion.

Shares of DaimlerChrysler fell 15 cents to $46.24 on the New York Stock Exchange.