DaimlerChrysler Continues Profitable Growth in April
18 May 1999
DaimlerChrysler Continues Profitable Growth in April
- Revenues +9% to Euro 46.7 billion for January to April
- Bob Eaton: "The promises we made have not only been kept, they have
been exceeded."
- Jurgen E. Schrempp: "Social responsibility is a deciding factor for the
future of our company."
STUTTGART, Germany and AUBURN HILLS, Mich., May 18 --
DaimlerChrysler continued to show profitable growth in April 1999,
with revenues up 9% to Euro 46.7 billion for the four months from January
through April. As in the first quarter of 1999, operating profit increased in
April by more than revenues. This was reported at the new company's first
Annual General Meeting (AGM) in Stuttgart today.
The Mercedes-Benz and smart Passenger Cars division increased revenues by
14% to Euro 11.6 billion for the period January through April. The Chrysler,
Dodge, Plymouth and Jeep(R) brands contributed Euro 20.9 billion. The total
number of employees of DaimlerChrysler grew in the first four months of this
year by 15,500 to 457,000.
DaimlerChrysler expects more than 20,000 visitors at its first AGM, a
record number. The company will report to its shareholders for the first
time, six months after the merger in November 1998, in the Hanns-Martin-
Schleyer-Halle in Stuttgart.
Reviewing performance, Chairman Robert J. Eaton told shareholders, "Since
the announcement of the merger, we have not only kept our promises, we have
exceeded them. As a result, your company shines more brightly than even we
dared to imagine."
Eaton continued, "While we have concentrated heavily on the integration
process, we never lost sight of the need to achieve corporate growth and
profitability. In the interest of customers, employees and shareholders, this
will not change. The company's extremely positive results confirm our
commitment to focus on the day-to-day business."
"We promised that this was not a merger to rationalize costs, but a merger
of growth," stated Eaton. "You have seen this promise fulfilled with record-
setting vehicle sales, outstanding financial results and the addition of
19,000 jobs since early 1998."
Speaking to shareholders Eaton continued, "We are committed to innovation
and to working enthusiastically towards creating products and technology that
will delight and surprise our customers -- we have a clear focus on
shareholder value. And in the future, you can expect us to expand into growth
markets around the world from our strongholds in North America and Europe."
In his speech, Chairman Jurgen E. Schrempp spelled out the key factors
driving profitable growth at DaimlerChrysler, "We will ensure that the
integration process continues with speed and success. It is decisive for the
future of DaimlerChrysler that innovative ideas be incorporated into market-
ready products faster than the competition. We will not only expand our
global presence through exports, but also through investments and our
worldwide production network. We will do all this with a focus on social
responsibility. The most important factor for the success of the company is
its competent and highly motivated workforce."
He summarized the goals of management for the shareholders, "In the next
ten years we want to double the revenues of DaimlerChrysler. Your company
will not only become larger, but also more valuable as a result of increased
profitability and lasting profitable growth."
Commenting on the integration process, Schrempp said, "The integration is
bearing fruit. This company is already worth more than the sum of its parts.
This merger is not only being managed, it is being lived. We are creating a
common culture in which the traditions of Benz, Chrysler and Daimler all have
their places. DaimlerChrysler is a global company, but it is not a company
without a home."
In his speech, Schrempp set out the meaning of social responsibility for
DaimlerChrysler, "Social and ecological responsibility on the one hand and
profitability on the other are not conflicting goals. We at DaimlerChrysler
can demonstrate this in many ways. For us, social responsibility is as
crucial to our future as financial planning or corporate strategy."
Success of first quarter continues through April.
All DaimlerChrysler divisions were able to continue through April the
positive trend started in the first quarter of 1999. Chrysler, Dodge,
Plymouth and Jeep(R) increased unit sales in the first four months of 1999 by
2% with 1.1 million units sold and revenues up 4% to Euro 20.9 billion. On
the basis of its outstanding unit sales in the first four months of 1999,
Mercedes-Benz sees the chance for unit sales for the year as a whole to top
one million passenger cars for the first time. The Commercial Vehicles
division with the Mercedes-Benz, Freightliner, Sterling and Setra brands
increased unit sales by 17% to 173,900 units. Revenues grew 14% to Euro 8.2
billion over the same period.
Revenues from DaimlerChrysler Services increased by 7% to Euro 3.7
billion; on a comparable basis, revenues rose by 21%. DaimlerChrysler
Aerospace also posted continued expansion with revenues reaching Euro 2.6
billion, an increase of 10%. TEMIC, MTU/Diesel Engines and Adtranz in total
achieved an increase of revenues of 8% on a comparable basis.
Proposed dividend of Euro 2.35
Shareholders will vote at the Annual General Meeting on the proposal of
the Board of Management and Supervisory Board to pay a dividend of Euro 2.35
(DM 4.60) per share. For U.S. shareholders, the exact amount of the dividend
will be calculated on the basis of the U.S. dollar exchange rate the morning
following the Annual General Meeting (May 19, 1999). On the basis of an
exchange rate of Euro 1.07 per U.S. dollar, the dividend would be
approximately $2.50 per share.
PLEASE NOTE: This press release contains forward-looking statements based
on beliefs of DaimlerChrysler management. When used in this release, words
such as "anticipate", "believe", "estimate", "expect", "intend", "plan", and
"project" are intended to identify forward-looking statements. Such
statements reflect the current views of DaimlerChrysler with respect to future
events and are subject to risks and uncertainties. Many factors could cause
the actual results to be materially different, including, among others,
changes in general economic and business conditions, changes in currency
exchange rates and interest rates, introduction of competing products, lack of
acceptance of new products or services and changes in business strategy.
Actual results may vary materially from those projected here. DaimlerChrysler
does not intend or assume any obligation to update these forward-looking
statements.
DaimlerChrysler -- Figures January Through April
DaimlerChrysler Group YTD YTD Change
1999 1998 99:98
Values in million Euro US$ Euro (based on
Euro)
Revenues 46,720 49,355 42,917 +9%
Employees 457,028 425,718 +7%
Revenues by Segments YTD YTD Change
unconsolidated 1999 1998 99:98
In millions Euro US$ Euro (based on
Euro)
Passenger Cars
Mercedes-Benz, smart(R) 11,595 12,249 10,149 +14%
Passenger Cars and Trucks
Chrysler, Plymouth, Jeep(R),
Dodge 20,854 22,030 20,035 +4%
Commercial Vehicles
Mercedes-Benz, Freightliner,
Sterling, Setra 8,217 8,680 7,191 +14%
DaimlerChrysler
Services (debis) 3,703 3,911 3,470 +7%
DaimlerChrysler
Aerospace (Dasa) 2,601 2,748 2,364 +10%
Others (1998: 50% of Adtranz
revenues included) 1,477 1,560 932 +58%
Unit Sales YTD YTD Change
1999 1998 99:98
Passenger Cars Mercedes-Benz, smart(R) 332,300 273,300 +22%
Passenger Cars and Trucks
Chrysler, Plymouth, Jeep(R), Dodge 1,127,100 1,102,100 +2%
Commercial Vehicles Mercedes-Benz,
Freightliner, Sterling, Setra 173,900 148,300 +17%
Please note: 1999 figures are converted on a Euro/US$ exchange rate of
1.0564 (Noon Buying Rate of Bank of New York on April 30, 1999).