"The operating income numbers, the adjusted number, appears to be ahead of consensus; a positive surprise," Schroder Salomon Smith Barney car industry analyst John Lawson.

Sales fell only slightly, to 36bn euros (�22.5bn; $32.1bn) from 37.1bn euros a year earlier, as the company sold about one million cars worldwide during July, August and September.

But adjusted operating profits rose 23% to 666m euros, well above even the most optimistic predictions.

Analysts had predicted widely different operating profit figures, ranging from just 130m euros to 540m euros, with the average prediction at 338m euros.

Chrysler's troubles

In the US, the Chrysler division of the company suffered a 28% fall in sales in September as the terrorist attacks caused an abrupt halt to many people's decision to buy a car.

Chrysler, which had already been offering discounts for some of its older models, set out to match discounts offered by its two main rivals, Ford and General Motors, in the wake of the attacks.

Analysts fear this could hurt the company's earnings badly over the next few months.

DaimlerChrysler is pushing ahead with a restructuring program that aims to bring its Chrysler division back into the black by 2003.

Rising stock

Following the announcement, DaimlerChrysler shares extended earlier gains, rising 7% before noon in Europe.

The company's shares had already risen sharply during morning trading in Frankfurt on the back of a statement from the car and trucks maker that its profits for the year is about to meet earlier forecasts.