DaimlerChrysler up as GM outlook offsets Mitsubishi investment talk

AFX News Limited

January 9, 2004

FRANKFURT (AFX) - Shares in DaimlerChrysler AG gained ground in early deals as General Motor Corp's upward 2004 EPS guidance took the focus off speculation that the German-US auto giant may inject more capital into its 37 pct-owned Mitsubishi Motors Corp, dealers said.

At 9.48 am, DaimlerChrysler shares were up 0.41 eur or 1.11 pct at 37.25, while the DAX 30 index was up 15.87 points or 0.39 pct at 4,061.30.

Overnight, General Motors -- one of the US Big Three carmakers, alongside Ford and Chrysler -- said market consensus for the group's 2003 EPS was "reasonable".

But GM said it is forecasting 2004 EPS of 6.00-6.50 usd, excluding special items, which was well ahead of the consensus of 5.66.

Dealers said that the upbeat GM comments are more than outweighing reported comments from DaimlerChrysler chief financial officer Manfred Gentz to analysts in Detroit this week that a Mitsubishi Motors capital hike may make sense, but that no decision has been made.

Gentz reportedly reiterated that DaimlerChrysler has no interest in boosting its stake in Mitsubishi Motors until its finances have improved.

But if DaimlerChrysler and other Mitsubishi Motors shareholders took part in a capital increase, DaimlerChrysler would not end up lifting its stake, dealers said.

joe.brennan@afxnews.com

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