Daimler cuts outlook; Renault to reduce shifts

By Steve Goldstein, MarketWatch LONDON (MarketWatch) -- Daimler on Thursday cut its 2008 earnings outlook and Renault announced a new series of cost-cutting measures as the automakers grapple with surging oil prices, rising raw material costs and a strong euro. Daimler , the maker of Mercedes-Benz cars and a 20% owner of Chrysler, reported a net profit of 1.4 billion euros ($2.2 billion), down from 1.85 billion euros a year ago. Earnings before interest and tax fell 4% to 2.05 billion euros while revenue rose 6% to 25.38 billion euros. Daimler said it now expects earnings before interest and taxes for the year to exceed 7 billion euros, due to rising raw-materials prices and the economic slowdown. Its previous forecast was for a significant improvement on the 7.7 billion euros it reported in the previous year. German... [read full story]