Germany's DaimlerChrysler posted a 2003 operating profit excluding one-off items of 5.1 billion euros ($6.4 billion), topping its full year target of about five billion euros.
The world's fifth biggest carmaker, battling to revive its U.S. Chrysler unit even after a three-year overhaul, said operating profit before excluding extraordinary items fell to 5.7 billion euros from 6.8 billion euros in 2002.
A Reuters poll of 20 analysts had showed an average estimate of 5.89 billion euros for operating profit before a roughly one billion euro gain from the sale of the MTU Aero engines business and charges of 469 million euros for restructuring at Chrysler.
DaimlerChrysler shares pared their losses after the results and at 1515 GMT were trading down 0.59 percent.
"The operating profit was under analyst expectations. The share's rising because a few people went short before the results and are now covering their positions," a trader said.
The company is striving to make a success of its global strategy, which has in the last six years involved the merger of Germany's Daimler-Benz with the U.S.'s Chrysler and the purchase of stakes in Korea's Hyundai and Japan's Mitsubishi Motors .
Chrysler remains the hot spot as few analysts believe the unit, hit by a U.S. price war and fierce competition especially from Japanese rivals, will have met its target of a small operating profit for 2003.
DaimlerChrysler, whose brands include Mercedes, Jeep and Freightliner also said it would hold its 2003 dividend steady at 1.50 euros per share.
It will not break out earnings for each division until February 19.
Hopes of an improving U.S. market have pushed its shares higher this year, and they are trading close to a 15-month high, raising speculation that its biggest shareholder, Deutsche Bank, may soon sell its 12 percent stake in the carmaker.
