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DaimlerChrysler AG exceeded Wall Street expectations with its first-quarter earnings, despite a dip in operating profit. Unit sales increased 9.4% to 1.32 million vehicles, generating $39.2 billion in revenue. That is an increase of 21.8%, partly due to a weaker euro than like-1999. Net income rose 7.5% to $1.62 billion, and earnings per share increased 7.3% to $1.62 from $1.51 - beating Wall Street estimates of $1.58. Operating profit dropped 3% based on the euro (DCC's official currency), but actually increased 1% in U.S. dollars because the euro has dropped in value from a year ago. The German-U.S. automaker blamed the competitive U.S. market for a 7% drop in earnings in euros or 3.5% in U.S. dollars in the Chrysler division. Strong minivan and Jeep sales were not enough to overcome the cost of incentives, estimated at $2,000 per vehicle, up $500 from like-1999. (Ford and GM earnings, see p.31.)
