DaimlerChrysler Announces Record Sales and Revenues in 1999
28 December 1999
DaimlerChrysler Announces Record Sales and Revenues in 1999
- Preliminary figures indicate revenues up 12 percent to about
148 billion euros ($149 billion)
- Continued growth of sales and revenues expected in 2000
- Eaton and Schrempp: 'Innovative technologies, attractive products and
state-of-the-art services for the new millennium'
- New organizational structure facilitates flexible response to growth
opportunities and market fluctuations
STUTTGART, Germany and AUBURN HILLS, Michigan, Dec. 28 --
DaimlerChrysler set a number of records in a successful 1999, including
all-time highs in sales, revenues and earnings. According to preliminary
figures, revenues will be up 12 percent (in euro-terms) to about 148 billion
euros ($149 billion).* The preliminary figures also indicate that
DaimlerChrysler's operating profits will have grown more strongly than
revenues, as the company projected in October.
* PLEASE NOTE:
DaimlerChrysler's statements are based on Euro-terms. For business year
1998, the euro figures had been translated into US-dollar at an exchange rate
of 1 euro = $ 1.1733, based on the noon-buying rate of December 31, 1998. The
comparable $-figure for 1998 revenues was, based on this exchange rate, $154.6
billion/131.8 billion euros. The 1999 figures in this release are unaudited
and based on a convenience translation from Euro (E) to US-Dollar ($) on the
current exchange rate of about 1 euro = $ 1.01.
DaimlerChrysler expects further increases in sales and revenues in 2000,
based on today's projections. The company anticipates that the positive
momentum in its automotive products and services will continue next year.
"Nearly all of our vehicle brands reached all-time highs," said
DaimlerChrysler Chairman Jurgen E. Schrempp. "We have consolidated -- and in
some cases even significantly improved -- our position in many markets. Our
customers are rewarding us for our innovative products, the leading design of
our vehicles, and our comprehensive services. We are well prepared for the
year 2000 and the years ahead."
Added DaimlerChrysler Chairman Robert J. Eaton: "The automobile has had a
decisive influence on the 20th century and, as automotive pioneers, the
founders of our company made a huge contribution. Now we are preparing the
way for increasing mobility in the new millennium through the use of
innovative technologies such as fuel cells, unprecedented advances in
electronics and state-of-the-art services such as e-commerce."
DaimlerChrysler will release detailed financial statements for 1999 at the
Annual Press and Analyst Conferences on February 28, 2000.
Vehicle sales up approximately 7 percent
According to preliminary figures, DaimlerChrysler's vehicle sales rose to
more than 4.8 million units in 1999 (1998: 4.5 million), up approximately
7 percent. The passenger car brands Mercedes-Benz and smart contributed
1,070,000 units (1998: 922,800). Chrysler Group (Chrysler, Dodge, Jeep(R) and
Plymouth brands) sold approximately 3.2 million units in 1999
(1998: 3,093,700). About 550,000 (1998: 489,700) Mercedes-Benz, Freightliner,
Sterling and Setra commercial vehicles were sold in 1999.
New corporate organization facilitates flexibility
The new corporate organizational structure introduced in October has led
to greater flexibility for the company's vehicle brands. It has also
increased each division's responsibility and given the divisions more freedom
to take advantage of international growth opportunities. Each of the
automotive divisions now has global responsibility and is present worldwide
with a broad portfolio of innovative products that offsets market fluctuations
in individual regions.
The Automotive Council as a committee of the Board of Management ensures
the transfer of know-how between the automotive divisions and enables the
optimal exploitation of technologies and resources in the whole process chain.
The Sales and Marketing Council will coordinate the worldwide sales and
marketing operations. The entire automotive business of DaimlerChrysler is now
strongly positioned for the challenges of the new millennium.
Mercedes-Benz and smart Passenger Cars
The Mercedes-Benz, smart Passenger Cars division again increased revenues
to more than 37 billion euros ($ 37.4 billion) this year
(1998: 32.6 billion euros), and also set a sales record with more than 990,000
Mercedes-Benz passenger cars and about 80,000 smart cars (overall 1998
passenger car sales: 922,800). Business was especially brisk in the key
markets of Western Europe, North America and Japan. More detailed sales
figures for 1999 will be announced during the North American International
Auto Show, which will take place in Detroit at the beginning of January 2000.
In the premium segment, the new S-class -- with about 80,000 sold in
1999 -- enabled Mercedes-Benz to further improve its strong position.
Micro Compact Car smart GmbH achieved its sales target for 1999. Performance
was particularly strong in Germany, Italy and Switzerland, where smart gained
considerable market shares in its segment and has reached top positions in the
registration statistics of small cars.
Chrysler Group
Overall, 1999 turned out to be another record year for the North American
automotive industry. The Chrysler Group was particularly successful in the
sports utility and passenger cars segments.
Revenues of the Chrysler Group with its Chrysler, Dodge, Jeep and Plymouth
brands rose to around 63 billion euros ($63.6 billion) -- also a record
(1998: 56.3 billion euros). Worldwide shipments increased to more than
3.2 million vehicles, compared to the 3,093,700 units shipped in 1998.
Commercial Vehicles
Revenues from Mercedes-Benz, Freightliner, Sterling and Setra commercial
vehicles exceeded 26 billion euros ($ 26.3 billion/ 1998: 23.2 billion euros).
Freightliner was able to continue its success story, with sales increasing by
more than 50 percent worldwide. Sales of the Commercial Vehicles division
increased in all major markets, except Latin America and Turkey.
New customers were captured last year through an aggressive multi-brand
strategy and consistent market focus. The Commercial Vehicles division's goal
is to further expand its leading market position. To this end, individual
business units have been given worldwide responsibility, which will enable
them to enter new markets more rapidly and directly than before.
Services and Aerospace
DaimlerChrysler Services (debis) AG posted revenues of at least
12 billion euros ($12.1 billion) in 1999 (comparable 1998 figure:
10 billion euros). Business volume once again increased, despite the fact
that the telecommunications company debitel is no longer a part of the
division, following a public offering and sale of part of its stock to
Swisscom. Also, in 1999, debis merged its financing business with that of the
Chrysler Financial Company, improving its global market position. The IT
Services business unit continued to grow, particularly outside Germany.
Revenues at DaimlerChrysler Aerospace AG (Dasa) increased to more than
9 billion euros ($9.1 billion/1998: 8.8 billion euros). Business volume
particularly improved in the Commercial Aircraft business unit. In 1999,
Airbus won more than half of the orders for civil aircraft worldwide.
The recently agreed-upon merger of Dasa with Aerospatiale Matra (France)
and CASA (Spain) to form EADS (European Aeronautic Defence and Space Company)
is a breakthrough in the reorganization of Europe's aerospace industry which
is expected to create new opportunities for the profitable growth of the
aerospace business. After a public offering of EADS, scheduled for the second
quarter of 2000, DaimlerChrysler will own 30 percent of EADS, making it the
new company's biggest shareholder.
Adtranz, TEMIC, MTU/Diesel Engines
In early 1999, DaimlerChrysler purchased ABB's 50 percent holding in
Adtranz, making it a fully-owned subsidiary. Adtranz is to complete a
comprehensive restructuring program by the end of 2001 in order to concentrate
on key competencies, streamline production, and to adjust capacities to market
conditions. The restructuring program is expected to enable Adtranz to
break-even in the year 2000. Adtranz increased revenues to 3.5 billion euros
($3.5 billion) this year (1998: _ 3.3 billion).
The Automotive Electronics business unit (TEMIC) again increased revenues
and incoming orders. TEMIC boosted revenues to more than 800 million euros
($ 800 million/1998: 754 million euros) and order volume to more than
1 billion euros ($1 billion/1998: 760 million euros).
The MTU/Diesel Engines business unit will probably slightly exceed the
previous year's revenues and incoming order volume of 921 million euros and
914 million euros, respectively, despite the negative effects of unfavorable
market conditions resulting from the economic and financial crisis in Asia.
In the second half of the year, market trends were more positive, particularly
in 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, "year end accounting adjustments 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.
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Eckhard Zanger Phone: +49-711-17-93311