DaimlerChrysler Reports Full Year and Divisional Results for
2000
- Group Operating Profit down 11% to 9.8 billion euros ($9.2 billion);
excluding one-time effects a decline of 49% to 5.2 billion euros
($4.9 billion)
- Record Operating Profit (without one-time effects) of 2.9 billion euros
($2.7 billion) at Mercedes-Benz Passenger Cars and smart in 2000
- Commercial Vehicles Operating Profit up 8% to 1.2 billion euros
($1.1 billion) in 2000
- Chrysler Group Operating Profit down by 90% to 0.5 billion euros
($0.5 billion)
- DaimlerChrysler Services Operating Profit declined 38% to 0.6 billion
euros ($0.6 billion) (adjusted for one-time effects).
STUTTGART, Germany and AUBURN HILLS, Mich., DaimlerChrysler AG (stock symbol DCX) announced today full year figures for
2000, including the performance of its operating divisions.
Details of the Turnaround Plan for the Chrysler Group will be announced
later this morning in a separate release.
DaimlerChrysler Group
In 2000, Revenues increased 8% to a record 162.4 billion euros
($152.4 billion) (1999: 150 billion euros), on a comparable basis Revenues
increased by 12%.
Operating Profit was hit by Second Half losses in North America.
Including one-time effects, Operating Profit fell by 11% to 9.8 billion euros
($9.2 billion) (1999: 11.0 billion euros). Net income rose 37% to 7.9 billion
euros ($7.4 billion) (1999: 5.7 billion euros) and EPS increased from
5.73 euros to 7.87 euros ($7.39), due mainly to a lower tax burden. Excluding
one-time effects, which had a net positive effect of 4.5 billion euros
($4.3 billion), Operating Profit declined by 49% to 5.2 billion euros
($4.9 billion) (1999: 10.3 billion euros). Net income declined by 44% to
3.5 billion euros ($3.3 billion), with EPS of 3.47 euros ($3.26), down from
6.21 euros.
Dividend
The Board of Management and the Supervisory Board will recommend at the
Annual Meeting on April 11, 2001 in Berlin, an unchanged dividend of
2.35 euros ($2.21) per share.
Mercedes-Benz Passenger Cars and smart
Mercedes-Benz Passenger Cars and smart had another record year. Worldwide
sales increased by 7% to 1,154,900 units (1999: 1,080,300). Revenues rose
from 38.1 billion euros in 1999 to 43.7 billion euros ($41.0 billion), an
increase of 15%. Operating Profit adjusted for one-time effects was
2.9 billion euros ($2.7 billion) (1999: 2.7 billion euros), up 6%.
The division increased its share of the German market, despite a declining
market trend. For the first time, more than 200,000 Mercedes-Benz vehicles
were sold in the U.S.
The new C-Class with sales of 147,900 was extremely well received, as were
the M-Class and the S-Class. The S-Class sedan was again the leader in its
segment with a worldwide market share of 53%. Sales of the smart totaled
102,100 (1999: 79,900).
Chrysler Group
The Chrysler Group had an extremely difficult year in 2000 and is in the
midst of a wide-ranging Turnaround Plan. Unit Sales declined slightly to
3.0 million vehicles (1999: 3.2 million). Revenues were up 7% to 68.4 billion
euros ($64.2 billion) (1999: 64.1 billion euros), due mainly to the strength
of the US dollar against the euro. Measured in US dollars, Chrysler Group's
revenue fell by 8%. Operating Profit went down by 90% to 0.5 billion euros
($0.5 billion) (1999: 5.2 billion euros) as a result of losses incurred in the
second half of the year due to a combination of intense competition in the US,
higher spending on incentives and costs associated with new model launches.
Commercial Vehicles
Although Unit Sales of Commercial Vehicles declined slightly from
554,900 in 1999 to 549,000 in 2000, revenues increased by 8% to 28.8 billion
euros ($27.1 billion) (1999: 26.7 billion euros). Operating Profit rose from
1.1 billion euros ($1.1 billion) to 1.2 billion euros despite a significant
slowdown in the second half at Freightliner in the US. On the other hand,
truck markets in Brazil and Turkey recovered.
Commercial Vehicles launched a number of new models in 2000 including the
heavy duty Actros SLT, the Unimog module carrier U500, the Medio minibus, the
OC500 bus chassis, and a redesigned Sprinter van. Two significant
acquisitions were made: Western Star, the Canadian premium manufacturer of
heavy trucks and its bus brand Orion; and Detroit Diesel, one of the world's
leading manufacturers of heavy-duty diesel engines for on-highway
applications.
DaimlerChrysler Services
To reflect a sharper focus on financial services along the automotive
chain, the division's name has been changed from debis to DaimlerChrysler
Services AG.
In 2000, Revenues grew strongly rising 36% to 17.5 billion euros
($16.5 billion) (1999: 12.9 billion euros). However, Operating Profit
(adjusted for one-time effects) declined 38% from 1.0 billion euros to
0.6 billion euros ($0.6 billion), particularly as in the second half of 2000,
growing pressures and rising interest rates led to more intensive competition
in financial services and a significant decline in earnings in the US. The
one-time effects were caused, on the one hand, by a gain of 2.3 billion euros
($2.2 billion) from the disposal of a controlling interest in debis
Systemhaus. On the other hand falling used-car prices -- especially in the US
-- led to a value adjustment of leased vehicles by 0.5 billion euros
($0.5 billion).
Aerospace
Last July, DaimlerChrysler Aerospace (Dasa), France's Aerospatiale Matra
and Spain's Casa merged to form the European Aeronautic Defence and Space
Company (EADS). It is the largest aerospace company in Europe and the third
largest in the world.
EADS enjoyed a successful Initial Public Offering (IPO) on the stock
market and DaimlerChrysler became the largest shareholder with a stake of
approximately 33%. It resulted in a one-time gain in Operating Profit of
3.3 billion euros ($3.1 billion).
As a result of the changes in ownership, Dasa has only been included in
DaimlerChrysler's consolidated financial statements for the first half of
2000. Since July 1, 2000 EADS is included at equity, in proportion to the
stake held in EADS by DaimlerChrysler.
Due to consolidation effects, Revenues of EADS declined 41% to 5.4 billion
euros ($5.1 billion) in 2000, while Operating Profit fell 38% to 0.5 billion
euros ($0.4 billion) (1999: 0.7 billion euros).
Other Industrial Businesses
In 2000, the sale of Adtranz, DaimlerChrysler rail systems unit, to
Bombardier was agreed, subject to approval by EU regulators. In 2000, Adtranz
Revenues rose 9% to 3.9 billion euros ($3.7 billion) (1999: 3.6 billion
euros), incoming orders were up 24% to 4.1 billion euros ($3.8 billion), and
break-even was achieved.
Automotive Electronics (TEMIC) had a good year with a 20% growth in
Revenues to 1.1 billion euros ($1.0 billion) (1999: 0.9 billion euros).
Incoming orders were up 13% to 1.2 billion euros ($1.1 billion).
MTU/Diesel Engines increased Revenues by 8% to 1.0 billion euros
($1.0 billion), primarily in commercial applications for ships and distributed
power systems.
This press release contains forward-looking statements based on beliefs of
DaimlerChrysler management. When used in this release, the words
"anticipate," "believe," "estimate," "expect," "intend," "plan," and "project"
are intended to identify forward-looking statements. Such statements reflect
the current views of DaimlerChrysler with respect to future events and are
subject to risks and uncertainties. Many factors could cause the actual
results to be materially different, including, among others, changes in
general economic and business conditions, changes in currency exchange rates
and interest rates, introduction of competing products, lack of acceptance of
new products or services and changes in business strategy. Actual results may
vary materially from those projected here. DaimlerChrysler does not intend or
assume any obligation to update these forward-looking statements.
Visit DaimlerChrysler's Media Services Web Site at
http://www.media.daimlerchrysler.com for additional DaimlerChrysler news.
