Financial results 2001: Opel Reports 87 Million Euro Net Profit
FOR RELEASE: January 16, 2002Financial results 2001: Opel Reports 87 Million Euro Net Profit
10 billion Euro of investments through 2006
- Operating result a negative 674 million Euro
- Record investment of 900 million Euro in 2001
- Slight increase in market share in Europe
- New models at six-month intervals
Rüsselsheim. Opel finished 2001 with a net profit of 87 Million Euro. Results from Opel´s domestic subsidiaries were reported according to U.S. GAAP accounting standards and for the first time included the results of Opel Bank GmbH, which contributed decisively to Opel´s net profit. The bank achieved a trading profit of 260 million Euro in 2001. In addition, the bank transferred to Opel gross dividends for the fiscal years 1998 through 2000 amounting to 449 million Euro. Opel purchased the financial services institution in December 2000.
Cash flow of 352 million Euro (as of December 31, 2001, effectively secures Opel´s liquidity position. Shareholder´s equity amounted to 2.34 billion Euro, thus constituting very solid financial resources.
Opel´s operating result last year was a negative 674 million Euro following a 502 million Euro deficit in 2000. High structural, marketing and administrative costs, over-capacity, less than adequate contributions to profits and a model mix emphasis that has shifted towards smaller cars were the main reasons for the loss.
However, Opel made record investments last year amounting to around 900 million Euro (excluding Powertrain). The key investment areas were the new, high productivity Rüsselsheim plant and the new Vectra. Investments throughout Europe amounting to 10 billion Euro for the new model offensive and for the development of Opel and Vauxhall vehicles are planned for the years 2002 through 2006.
"The product is now the focal point at Opel. On average, we will launch a new vehicle every six months. All our resources have been aligned to achieve this goal. General Motors is giving us its full support," Chairman and Managing Director Carl-Peter Forster said.
Opel is implementing the "Olympia" program in order to ensure its future competitiveness. Key elements of the initiative are the reduction of structural costs, the optimization of production capacity and materials costs through the integration of suppliers, the alignment of workforce levels, further efficiency improvements in development processes at the International Technical Development Center, and a new image campaign along with a reorganization of the sales network.
Market share for Opel/Vauxhall cars and light commercial vehicles in Western and Central Europe rose slightly to 9.3 percent last year as compared to 9.2 percent in 2000. In the passenger car segment the market share in Western Europe was 10.3 percent (2000: 10.2 %). Market share in Germany amounted to 11.9 percent (2000: 12.2%)
Total vehicle production reached 1,157,034 units (2000: 1,287,454), sales revenues amounted to 16.024 billion Euro (2000: 17.121 billion Euro). At the end of 2001, the Opel workforce totalled 37,707 employees (2000: 42,668).