DaimlerChrysler: Significant Profitability Improvement in
2002 With $1.38B Profit
* Group operating profit excluding one-time effects increases more than
fourfold to $6.1 billion ($7.2 billion including one-time effects)
* All divisions report higher earnings
* Mercedes Car Group: operating profit slightly higher than previous
year at $3.2 billion
* Chrysler Group: operating profit excluding one-time effects of
$1.4 billion, very well above target
* Commercial Vehicles: operating profit excluding one-time effects
improves to $185 million
* Services: operating profit excluding one-time effects rises
significantly to $1,011 million
STUTTGART, Germany and AUBURN HILLS, Mich., Feb. 20 -- DaimlerChrysler today published its consolidated financial statements and
its divisions' results for 2002. "In view of the economic situation, on the
whole we are satisfied with the results for 2002. This is one important step
on the road to sustainable profitability," said CEO Jurgen Schrempp at the
annual press conference.
DaimlerChrysler Group
DaimlerChrysler achieved an adjusted operating profit of $6.1 billion in
2002 ($7.2 billion including one-time effects). Despite difficult market
conditions worldwide, this result was four times higher than the $1.4 billion
reported for 2001. All of the Group's divisions and the successful
implementation of the plans for increasing efficiency at Chrysler Group and
Freightliner contributed to this increase.
Including one-time effects there was an operating profit of $7.2 billion
(2001: operating loss of $1.4 billion). Positive one-time effects amounting
to $1.1 billion were reported for 2002. These include one-time gains totaling
$2.8 billion from the sale of a 49.9% interest in T-Systems (formerly debis
Systemhaus) and of a 40% stake in TEMIC. One-time expenses occurred at
Chrysler Group (in connection with the turnaround plan announced in February
2001) in an amount of $0.7 billion, at the Commercial Vehicles division in an
amount of $0.5 billion, and at the Services division in an amount of $0.4
billion.
Group net income excluding one-time effects rose from $0.8 billion to
$3.5 billion, while earnings per share went up from $0.77 to $3.46. Including
one-time effects, net income increased to $4.9 billion, after a net loss of
$0.7 billion in the previous year ($4.91 per share after a loss of $0.69 in
2001).
In 2002, the DaimlerChrysler Group's revenues decreased by 2% to
$156.8 billion. Adjusted for changes in the consolidated Group and
exchange-rate movements, revenues increased by 1.6%.
DaimlerChrysler employed 365,571 people at the end of last year
(Dec. 31, 2001: 372,470). The main reason for this decrease was the
implementation of efficiency improvements at Chrysler Group and adjusted
production capacity at the Commercial Vehicles division.
DaimlerChrysler invested $7.5 billion in property, plant and equipment and
spent $6.5 billion on research and development in 2002.
Higher dividend of 1.50 euros proposed
Due to the significant improvement in profitability, the Board of
Management and the Supervisory Board will propose to the Shareholders' Meeting
that the dividend for the 2002 financial year be raised to 1.50 euros per
share (2001: 1.00 euros). The total dividend distribution will then increase
from 1,003 million euros to 1,519 million euros.
Mercedes Car Group
The Mercedes Car Group division, which operated under the name of
Mercedes-Benz Passenger Cars & smart until December 31, 2002, and includes the
brands Mercedes-Benz, Maybach, smart, Mercedes-Benz AMG and Mercedes-Benz
McLaren, surpassed the previous year's strong results in terms of unit sales,
revenues and operating profit. With unit sales worldwide of
1,232,300 vehicles (2001: 1,229,700), the division was unaffected by the
generally unfavorable markets and strengthened its position in nearly all
important markets. Revenues rose by 5% to $52.6 billion
(2001: $50.0 billion). Operating profit of $3.17 billion was slightly higher
than in the previous year ($3.10 billion).
Chrysler Group
Despite intense competition in North America and the need for generous
sales incentives, Chrysler Group achieved an operating profit excluding
one-time effects of $1.38 billion (2001: operating loss of $2.29 billion).
Operating profit including one-time effects amounted to $0.64 billion
(2001: operating loss of $5.54 billion). The 2002 breakeven target announced
in the turnaround plan of February 2001 (excluding one-time effects) was
therefore significantly surpassed. Worldwide, Chrysler Group sold
2.82 million passenger cars, minivans, sport-utility vehicles and light trucks
(2001: 2.76 million). The division reported revenues of $63.1 billion,
5% below the previous year's level of $66.6 billion due to
currency-translation effects. Measured in US dollars, revenues were at the
same level as in the previous year.
Commercial Vehicles
The Commercial Vehicles division sold 485,400 trucks, buses and vans
worldwide in 2002 (2001: 492,900), thus maintaining its position as the
world's largest manufacturer of commercial vehicles in a very difficult market
environment. The division generated revenues of $29.8 billion as against
$30.0 billion in the previous year. As planned, operating profit adjusted for
one-time effects of $185 million exceeded the previous year's figure of
$53 million. Including one-time effects there was an operating loss of
$360 (2001: operating loss of $539) million. One-time charges arose at
various business units in a total amount of $544 million, primarily as a
result of structural changes, but also due to a special depreciation of
production facilities in the context of the long-term product and production
strategy.
Services
Despite difficult conditions worldwide, DaimlerChrysler Services'
operating profit excluding one-time effects of $1,011 million was 67% better
than the previous year's result. Operating profit including one-time effects
amounted to $3.2 billion (2001: $642 million). This figure includes a
one-time gain of $2.6 billion from the sale of the remaining 49.9% stake of
T-Systems ITS (formerly debis Systemhaus) to Deutsche Telekom. On the other
hand, there was a one-time charge of $112 million due to the economic crisis
in Argentina (further devaluation of the Argentine peso against the US
dollar), as well as losses from the sale of parts of the Capital Services'
portfolio and a valuation adjustment to the remainder totaling $295 million.
As expected, the division's revenues of $16.5 billion were lower last year
than in 2001.
Other Activities
The Other Activities segment comprises the MTU Aero Engines business unit,
the Group's at-equity valued holdings in EADS (33%) and Mitsubishi Motors
Corporation (37.1%), together with Corporate Research, DaimlerChrysler's
real-estate activities and holding and finance companies. This segment's
revenues, which are mainly generated by MTU Aero Engines, decreased by
40% from the previous year's figure to $2.9 billion.
Last year, the segment's adjusted operating profit rose by $568 million to
$783 million (2001: $215 million). Operating profit including one-time effects
amounted to $947 million (2001: $1,238 million). Contributions to operating
profit from both Mitsubishi Motors and EADS were higher in 2002 than in the
year before.
Outlook
A further increase in political and macroeconomic uncertainty seems likely
in 2003, with possible effects on DaimlerChrysler's business developments.
DaimlerChrysler plans to achieve higher earnings this year than in 2002.
However, a precondition for this anticipated increase is that conditions
remain stable in the most important markets.
(For the reader's convenience, the financial information has been
translated from euros into United States dollars at an assumed rate of
1 euro = $1.0485.
The convenience translation does not mean that the euro amounts actually
represent the corresponding dollar amount stated or could be converted into
dollars at the assumed rate.)
This press release contains forward-looking statements that reflect our
current views about future events. We use the words outlook, anticipate,
assume, believe, estimate, expect, intend, may, plan, project, should and
similar expressions to identify forward-looking statements. These statements
are subject to many risks and uncertainties, including:
* changes in general political, economic and business conditions,
especially an economic downturn or slow economic growth in Europe or
North America;
* changes in currency exchange rates and interest rates;
* introduction of competing products and lack of acceptance of our new
products or services;
* increased competitive pressures which limit our ability to reduce
sales incentives and raise prices;
* whether Chrysler Group, Freightliner, and Mitsubishi Motors will be
able to continue to implement their turnaround plans successfully and
especially whether they will be able to meet their revenue
enhancement, efficiency and cost reduction initiatives;
* shortages or interruptions in the supply of fuel or production
materials, or labor strikes;
* changes in laws, regulations and government policies, particularly
those relating to vehicle emissions, fuel economy and safety, and the
outcome of current pending and possible future legal proceedings;
* decline in resale prices of used vehicles; and
* changes in business strategy.
If any of these risks and uncertainties occur, or if the assumptions
underlying any of our forward-looking statements prove incorrect, then our
actual results may be materially different from those we express or imply by
such statements. We do not intend or assume any obligation to update these
forward-looking statements. Any forward-looking statement speaks only as of
the date on which it is made.
DaimlerChrysler - Figures for 2002
DaimlerChrysler-Group 2002 2001
U.S.-$ Euro Euro
Revenues, in millions 156,838 149,583 152,873
Operating Profit (Loss),
in millions 7,186 6,854 (1,318)
Operating Profit, adjusted(1),
in millions 6,112 5,829 1,345
Net Income (Loss),
in millions 4,947 4,718 (662)
Per Share (EPS) 4.91 4.68 (0.66)
Net Income, adjusted(1),
in millions 3,490 3,329 730
Per Share (EPS), adjusted(1) 3.46 3.30 0.73
Dividend proposed -- 1.50 1.00
Employees (at year-end) 365,571 372,470
Operating Profit by Segments 2002 2001
including one-time effects,
in millions U.S.-$ Euro Euro
Mercedes Car Group 3,166 3,020 2,951
Chrysler Group 639 609 (5,281)
Commercial Vehicles (360) (343) (514)
Services 3,208 3,060 612
Other Activities 947 903 1,181
Operating Profit by Segments 2002 2001
excluding one-time effects,
in millions U.S.-$ Euro Euro
Mercedes Car Group 3,166 3,020 2,961
Chrysler Group 1,381 1,317 (2,183)
Commercial Vehicles 185 176 51
Services 1,011 964 578
Other Activities 783 747 205
Revenues by Segments 2002 2001
in millions U.S.-$ Euro Euro
Mercedes Car Group 52,603 50,170 47,705
Chrysler Group 63,100 60,181 63,483
Commercial Vehicles 29,778 28,401 28,572
Services 16,460 15,699 16,851
Other Activities 2,855 2,723 4,507
Unit Sales by Segments 2002 2001
Mercedes Car Group 1,232,300 1,229,700
Chrysler Group 2,822,700 2,755,900
Commercial Vehicles 485,400 492,900
1) excluding one-time effects
Rate of exchange: 1 euro = U.S.-$ 1.0485 (based on the noon buying rate
on Dec. 31, 2002)
DaimlerChrysler - Figures for the 4th Quarter 2002
DaimlerChrysler-Group Q4/2002 Q4/2001
U.S.-$ Euro Euro
Revenues, in millions 38,796 37,001 39,909
Operating Profit,
in millions 580 553 5
Operating Profit (Loss), adjusted(1),
in millions 1,230 1,173 564
Net Income (Loss), in millions 176 168 (39)
Per Share (EPS) 0,17 0.16 (0.04)
Net Income (Loss), adjusted(1),
in millions 756 721 284
Per Share (EPS), adjusted(1) 0.74 0.71 0.28
Employees (at year-end) 365,571 372,470
Operating Profit by Segments(1) Q4/2002 Q4/2001
in millions U.S.-$ Euro Euro
Mercedes Car Group 765 730 654
Chrysler Group 81 77 (359)
Commercial Vehicles 90 86 44
Services 289 276 188
Other Activities 299 285 96
Revenues by Segments Q4/2002 Q4/2001
in millions U.S.-$ Euro Euro
Mercedes Car Group 13,533 12,907 12,414
Chrysler Group 14,152 13,497 17,033
Commercial Vehicles 8,135 7,759 7,598
Services 4,083 3,894 4,372
Other Activities 867 827 986
Unit Sales by Segments Q4/2002 Q4/2001
Mercedes Car Group 300,000 307,200
Chrysler Group 651,400 687,000
Commercial Vehicles 133,400 126,700
1) excluding one-time effects
Rate of exchange: 1 euro = U.S.-$ 1.0485 (based on the noon buying rate on
Dec. 31, 2002)
