DaimlerChrysler said that net income dropped 14 percent for the second quarter, even after the recently sold Chrysler unit posted better than expected results.

The company reported on Wednesday that second quarter profits fell 14 percent to $2.5 billion (1.85 billion euros), while revenue declined 3 percent to $32.24 billion (23.84 billion euros).

The automaker also said it would buy back as much as $10.2 billion (7.5 billion euros) of stock within one year.

DaimlerChrysler said it is likely to take a $3.4 billion charge for the year from the sale of Chrysler, lower than the previous estimate of $5.5 billion due to better than expected performance from the loss-making unit.

While Chrysler performed better than expected, profit dropped for the quarter is largely because last year's figures included gains on selling part of its stake in EADS, the holding company that owns the commercial aircraft maker Airbus.

Daimler raised full-year forecasts to $11.5 billion in earnings before interest and tax, with revenue remaining flat.