Mercedes 2007 forecast predicts record profit

A leaked Mercedes Car Group planning document shows that the automaker expects a record profit in 2007 of $4.82 billion, on an operating margin of 7.3 percent (more than double the margin recorded in 2004).

Interesting tidbits:

• the group expects Smart to show a small profit in 2007, after forecast losses of nearly $1.9 billion this year.

• Mercedes-Benz expects to sell 10 percent fewer cars in 2006 and 2007, primarily due to lower sales of C-Class and E-Class models.

• the group forecast assumes an increase in the euro-dollar exchange rate to $1.35 from $1.20

• the forecast assumes 2,500 jobs will be cut, well below Zetsche's current target of 8,500.

[Reuters]