DaimlerChrysler slashes dividend

CARMAKER Daimler-Chrysler today slashed its first-time dividend to e1 from e2.35 the same time last year, against a forecast fall to e1.50.

The reduction is the first since the merger of the two car giants in 1998. The US-German group blamed 'difficult market conditions in North America as well as a general slowdown in the global economy'. These led to an operating loss of e1.3bn (£796m), which the group said was better than expected.

It predicted operating profits this year would 'exceed the 2001 level by a very significant amount' and said it was 'confident it will achieve results similar to those projected one year ago, but at slightly later dates'.

Revenues in 2001 totalled e152.9bn, unchanged from the previous year. The dividend cut is expected to save DaimlerChrysler more than e1.2bn. DaimlerChrysler shares were unchanged at 2707p.