DaimlerChrysler Reports Revenues and Operating Profit for First Half of 1999
30 July 1999
DaimlerChrysler Reports Increased Revenues and Operating Profit for First Half of 1999
-- Revenues grew by 10 % to Euro 72.3 billion ($74.6 billion) in the first
half of the year
-- Operating profit up 11 % to Euro 5.3 billion ($5.5 billion)
-- Adjusted net income up 11 % to Euro 3.1 billion ($3.2 billion)
-- Robert J. Eaton: "Integration of the new company is ahead of schedule with
tremendous momentum"
-- Jurgen E. Schrempp: "In most market segments, we have significantly
outperformed the market as a whole"
NEW YORK, July 29 -- DaimlerChrysler today
announced significantly improved revenues and operating profit in the first
half of 1999. Revenues grew by 10% to Euro 72.3 billion ($74.6 billion) and
operating profit by 11% to Euro 5.3 billion ($5.5 billion) over the first six
months of the year. DaimlerChrysler expects this trend of profitable growth
to continue in the second half of the year.
The most significant increases in the first half of the year came from the
Aerospace division, which posted a 42% gain in operating profit to reach
Euro 282 million ($291 million), and from Passenger Cars Mercedes-Benz, smart
with a growth rate of 11 % to Euro 1.15 billion ($1.18 billion). The division
Passenger Cars and Trucks Chrysler, Plymouth, Jeep(R) and Dodge, with
Euro 2.8 billion ($2.9 billion), up 5 % over last year, was the largest
contributor to operating profits. The division Commercial Vehicles Mercedes-
Benz, Freightliner, Sterling, Setra also contributed to the increase with an
operating profit of Euro 502 million ($518 million). The Euro 224 million
($231 million) increase in operating profit posted by the services division,
debis, which reached Euro 705 million ($727 million), was in large part the
result of the one-time gain from the IPO of debitel in March 1999.
Net income, adjusted for exceptional items, in particular the tax reform
in Germany, increased in the first half of the year by 11 % to
Euro 3.1 billion ($3.2 billion). Adjusted earnings per share rose to
Euro 3.11 ($3.21), up from Euro 3.02 ($3.11) for the same time period last
year.
For 1999 as a whole, DaimlerChrysler expects a distinct rise in revenues
and operating profit compared with the previous year. The growth in operating
profit, adjusted for one-time effects, is expected to be in line with revenue
growth rates. The company anticipates that revenues will significantly exceed
Euro 140 billion ($144 billion) for the year as a whole.
The company is expecting the positive economic situation in the United
States and Western Europe to continue. However, it is also taking into
account the negative impact of persisting problems in Asia and Latin America,
despite signs of recovery in these regions. Overall, DaimlerChrysler also
anticipates a worldwide intensification of competition in the automotive
industry.
80% of integration projects will be completed by year's end
DaimlerChrysler Chairman Robert J. Eaton emphasized the progress made in
the integration of DaimlerChrysler: "The integration process is fully ahead
of schedule with tremendous momentum. By year end, we will have completed 80%
of our integration projects."
DaimlerChrysler Chairman Jurgen E. Schrempp highlighted the company's
success to date: "In many market segments we have significantly outperformed
the market as a whole and in many areas we have improved our position in
comparison to our competition. We continue to be one of the most profitable
automobile companies in the world and have proven that during the integration
process we kept our eye on the ball and continued to grow our business
profitably."
Impressive sales figures in all divisions
In the first half of the year, 1,685,000 Chrysler, Plymouth, Jeep and
Dodge passenger cars and trucks were shipped worldwide, slightly exceeding the
all-time-high of the comparable period last year. The division was also able
to sustain its competitive market position in North America, despite intense
competition.
The sale of 519,100 Mercedes-Benz and smart passenger cars represents a
21% increase for the division. In Europe, significant double-digit sales
figures were achieved. Even in the depressed Japanese market, Mercedes-Benz
was able to post a 35% increase in new registrations.
Mercedes-Benz, Freightliner, Sterling, Setra commercial vehicles division
increased its sales by 18 % to 270,500 units. Particularly impressive was the
division's performance in North America, and the contribution of the new
Sterling and Thomas Built brands.
However, economic downturns in Latin America and Turkey hampered sales in
those regions. For the overall division, we anticipate sustaining the same
high level of sales for all of 1999.
The Services division, debis, continued its dynamic growth, posting
revenues of Euro 5.8 billion ($6.0 billion), a 24% increase on a comparable
basis. Following the sale of the majority of its stake in debitel, debis is
now concentrating on Financial Services and IT Services. The post-merger
integration of debis Financial Services with Chrysler Financial Services is
progressing well. IT Services outperformed the respective market with a 41%
increase in revenues.
Revenues of the Aerospace division, Dasa, increased by 10% to
Euro 4.2 billion ($4.4 billion) in the first half of the year. The Commercial
Aircraft business unit, which increased production and deliveries of Airbus
aircraft, was the largest contributor to the division's revenues. With a 23%
revenue growth rate, it also posted the highest increase within the division.
The order intake of 242 aircraft in the first half of 1999 made Airbus the
leader in the global commercial aircraft market.
The Rail Systems business unit, Adtranz, posted revenues of
Euro 1.5 billion ($1.6 billion). Profits, however, continued to be negative.
The Automotive Electronics business unit, TEMIC, increased its revenues by 25%
to Euro 447 million ($461 million) and also posted a significantly higher
operating profit. Revenues from MTU/Diesel Engines declined slightly to
Euro 370 million ($381 million) due to weak demand in key markets. Profits
from this business unit also fell slightly.
Footnote:
US dollar figures are for convenience only. All values, including the 1998
figures, are converted from Euro figures with the exchange rate of 1 Euro =
USD 1.031 (Noon Buying Rate of the Federal Reserve Bank of New York on
June 30, 1999).
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.
DaimlerChrysler -- Figures January Through June
DaimlerChrysler
Group values
In Euro YTD YTD Change 2nd Qtr. 2nd Qtr.
1999 1998 99:98 1999 1998
Operating profit,
in million 5,331 4,794 +11% 2,557 2,398
Operating profit,
adjusted*,
in million 5,075 4,550 +12% 2,552 2,374
Earnings before
taxes, in million 5,226 5,018 +4% 2,420 2,582
Net income,
adjusted*,
in million 3,123 2,820 +11% 1,484 1,488
Earnings per share
(EPS), adjusted* 3.11 3.02 +3% 1.48 1.59
Revenues,
in million 72,316 65,729 +10% 37,326 33,867
Employees 463,081 433,892 +7%
* adjusted for non-recurring items, net income and EPS also adjusted for
the effects of changes in German tax law
Operating Profit
by Segments
in million Euro,
unconsolidated YTD YTD Change 2nd Qtr. 2nd Qtr.
1999 1998 99:98 1999 1998
Passenger Cars
Mercedes-Benz,
smart(R) 1,147 1,036 +11% 616 523
Passenger Cars
and Trucks 2,778 2,657 +5% 1,322 1,304
Chrysler,
Plymouth,
Jeep(R), Dodge
in US$ (June 30,
1999 exchange
rate) 2,864 2,739 +5% 1,363 1,344
Commercial Vehicles
Mercedes-Benz,
Freightliner,
Sterling, Setra 502 487 +3% 319 323
DaimlerChrysler
Services (debis) 705 481 +47% 268 260
DaimlerChrysler
Aerospace (Dasa) 282 199 +42% 189 156
Others (98) 17 -.% (172) (105)
Revenues by
Segments YTD YTD Change 2nd Qtr. 2nd Qtr.
in million Euro, 1999 1998 99:98 1999 1998
unconsolidated
Passenger Cars
Mercedes-Benz,
smart(R) 18,011 15,670 +15% 9,571 8,197
Passenger Cars and
Trucks Chrysler,
Plymouth, Jeep(R),
Dodge in US$
(June 30, 1999
exchange rate) 31,553 29,830 +6% 16,262 14,835
32,531 30,755 +6% 16,766 15,295
Commercial Vehicles
Mercedes-Benz,
Freightliner,
Sterling, Setra 12,824 11,087 +16% 6,675 5,813
DaimlerChrysler
Services (debis) 5,845 5,340 +9% 3,054 2,807
DaimlerChrysler
Aerospace (Dasa) 4,238 3,864 +10% 2,318 2,166
Others (1998: 50%
of Adtranz revenues
included, 1999: 100%
of Adtranz revenues
included) 2,506 1,553 +61% 1,188 660
DaimlerChrysler -- Figures January Through June
US dollar figures -- convenience translation
All values, including the 1998 figures, are converted from Euro figures
with the exchange rate of 1 Euro = USD 1.031 (Noon Buying Rate of the Federal
Reserve Bank of New York on June 30, 1999).
DaimlerChrysler Group
values in US$ YTD YTD Change 2nd Qtr. 2nd Qtr.
1999 1998 99:98 1999 1998
Operating profit,
in million 5,496 4,943 +11% 2,636 2,472
Operating profit,
adjusted*,
in million 5,232 4,691 +12% 2,631 2,448
Earnings before
taxes,
in million 5,388 5,174 +4% 2,495 2,662
Net income,
adjusted*,
in million 3,220 2,907 +11% 1,530 1,534
Earnings per
share (EPS),
adjusted* 3.21 3.11 +3% 1.53 1.64
Revenues,
in million 74,558 67,767 +10% 38,483 34,917
Employees 463,081 433,892 +7%
* adjusted for non-recurring items, net income and EPS also adjusted for
the effects of changes in German tax law
Operating Profit YTD YTD Change 2nd Qtr. 2nd Qtr.
by Segments 1999 1998 99:98 1999 1998
in million US$,
unconsolidated
Passenger Cars
Mercedes-Benz,
smart(R) 1,182 1,068 +11% 635 539
Passenger Cars and
Trucks Chrysler,
Plymouth, Jeep(R),
Dodge 2,864 2,739 +5% 1,363 1,344
Commercial Vehicles
Mercedes-Benz,
Freightliner,
Sterling, Setra 518 502 +3% 329 333
DaimlerChrysler
Services (debis) 727 496 +47% 276 268
DaimlerChrysler
Aerospace (Dasa) 291 205 +42% 195 161
Others (101) 18 -. % (177) (108)
Revenues by
Segment YTD YTD Change 2nd Qtr. 2nd Qtr.
in million US$,
unconsolidated 1999 1998 99:98 1999 1998
Passenger Cars
Mercedes-Benz,
smart(R) 18,569 16,156 +15% 9,868 8,451
Passenger Cars
and Trucks
Chrysler,
Plymouth,
Jeep(R), Dodge 32,531 30,755 +6% 16,766 15,295
Commercial Vehicles
Mercedes-Benz,
Freightliner,
Sterling,
Setra 13,222 11,431 +16% 6,882 5,993
DaimlerChrysler
Services
(debis) 6,026 5,506 +9% 3,149 2,894
DaimlerChrysler
Aerospace
(Dasa) 4,369 3,984 +10% 2,390 2,233
Others (1998:
50% of Adtranz
revenues included,
1999: 100% of
Adtranz revenues
included) 2,584 1,601 +61% 1,225 680
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