DaimlerChrysler Reports Record 1999 Operating Profit
28 February 2000
DaimlerChrysler Reports Record 1999 Operating Profit Of Euro 11.0/$11.1 billion, up 28%
-- Adjusted for one-time effects, operating profit is up 20% to Euro
10.3/$10.4 billion
-- Adjusted net income increased by 16% to Euro 6.2/$6.3 billion, adjusted
earnings per share of Euro 6.21/$6.25
-- Revenues jump 14% in 1999 to reach a new high of Euro 150/$151 billon
AUBURN HILLS, Mich., and STUTTGART, Germany, Feb. 28 --
DaimlerChrysler AG today reported a record operating profit of
Euro 11.0/$ 11.1 billion in 1999, the company's first full year of operations.
This is an increase of 28 % compared to the 1998 figure of Euro 8.6/$ 8.7
billion. Adjusted for one-time effects, principally the sale of debitel
shares and restructuring expenses at Adtranz, operating profit grew by 20 % to
Euro 10.3/$ 10.4 billion. Operating profit thus outpaced revenues which rose
by 14 % to a record Euro 150.0/$ 151.0 billion.
DaimlerChrysler's 1999 net income increased to Euro 5.7/$ 5.8 billion, a
19 % gain over 1998. Earnings per share (eps) were Euro 5.73/$ 5.77, compared
to Euro 5.03/$ 5.06 in 1998. Net income on an adjusted basis increased to
Euro 6.2/$ 6.3 billion (1998: Euro 5.4/$ 5.4 billion). Adjusted earnings per
share were at Euro 6.21/$ 6.25 (1998: Euro 5.58/$ 5.62).
The company posted a record 1999 fourth quarter operating profit of Euro
2.4/$ 2.4 billion, up 37 % on a year ago. Adjusted for one-time effects,
operating profit was Euro 2.7/$ 2.7 billion, up 37 %. Net income in the
fourth quarter was Euro 1.1/$ 1.1 billion and on an adjusted basis Euro
1.6/$ 1.6 billion. Earnings per share in the fourth quarter were Euro
1.13/$ 1.14 compared to Euro 0.61/$ 0.61 a year ago (adjusted eps: Euro
1.59/$ 1.60, 1998: Euro 1.22/$ 1.23). Revenues in the fourth quarter
increased by 20 % to Euro 41.4/$ 41.7 billion.
DaimlerChrysler will propose an unchanged dividend of Euro 2.35/$ 2.37 per
share to its shareholders at its April 19 Annual Meeting in Berlin. The total
dividend pay-out of Euro 2.4/$ 2.4 billion is the highest annual dividend
among companies included in the German share index DAX. Additionally, the
company will ask shareholders at the Annual Meeting to authorize a plan to
implement a share buyback program.
Presiding over their last press conference together, DaimlerChrysler
Chairmen Robert J. Eaton and Juergen E. Schrempp thanked employees for their
outstanding performance in 1999.
"In an increasingly challenging business environment, our dedicated
employees throughout the world planned, executed and delivered one of the best
performances in the global automotive industry," said Eaton.
With a return on net assets after tax (RONA) of 13.2 % (1998: 12.7 %), the
company exceeded its cost of capital of 9.2 %. This translated into an
economic value added of Euro 2.1/$ 2.2 billion, an increase of Euro 387/$ 390
million, measuring the value contribution the company makes beyond the cost of
capital.
"Our strategy of focusing on premium segments, innovation leadership and a
balanced portfolio of first-class-brands proved successful in 1999," Schrempp
said. "We launched nine new models last year, and they became success
stories. In 2000, we will bring another 12 car and truck models to the market
-- all of them designed to impress customers with leading technology, trend-
setting design and value."
Strong Growth in the Automotive Businesses
Continued positive sales trends in the European Union and North America
contributed significantly to total revenues of Euro 128.9/$ 129.8 billion in
the company's automotive business, an increase of 15 % on 1998. Sales of
DaimlerChrysler passenger cars, light trucks and commercial vehicles worldwide
increased to almost 4.9 million units (1998: 4.5 million).
Mercedes-Benz Passenger Cars & smart
The Mercedes-Benz Passenger Cars & smart division increased sales to a new
high of 1.08 million units and increased its share in nearly all important
markets. The division posted record revenues of Euro 38.1/$ 38.4 billion
(1998: Euro 32.6/$ 32.8 billion). The division's operating profit grew 36 %
to Euro 2.7/$ 2.7 billion, also a new record.
Sales of Mercedes-Benz passenger cars increased by over 10 % to a new high
of 1,000,400 units worldwide and became the top selling luxury car brand in
the United States for the first time. In the European Union, sales of
Mercedes-Benz cars were up 8 %, while smart achieved its goal of 80,000 units
worldwide in 1999.
Chrysler Group
The Chrysler Group division with its Chrysler, Dodge, Jeep(R) and Plymouth
brands sold more than 3.2 million vehicles in 1999 (1998: 3.1 million).
Revenues increased 14 % to Euro 64.1/$ 64.5 billion (1998: Euro 56.4/$ 56.8
billion). Adjusted operating profit rose 22 % to Euro 5.2/$ 5.2 billion.
Chrysler brand sales grew 3 % to 455,500 vehicles. Jeep sales in 1999
reached an all-time high of 680,700 units, up 20 % on 1998, paced by the
brand's flagship Grand Cherokee with a 41 % increase. Dodge brand sales
increased 4 % in 1999 to 1.8 million units.
Commercial Vehicles
The Commercial Vehicles division which includes Mercedes-Benz,
Freightliner, Sterling, Setra, and Thomas Built Buses, increased unit sales of
trucks, vans and buses to a record high of 554,900 (1998: 489,700). Revenues
rose by 15 % to Euro 26.7/$ 26.9 billion.
Reflecting buoyant demand in North America and the European Union,
operating profit increased by 13 % to Euro 1.1/$ 1.1 billion.
DaimlerChrysler Services (debis)
In its 10th year, DaimlerChrysler Services (debis) continued its success
story and achieved record figures for revenues and operating profit. Revenues
increased by 29 % to Euro 12.9/$ 13.0 billion, reflecting strong international
growth. Operating profit was at Euro 1.0/$ 1.0 billion, excluding primarily a
gain of Euro 1.14/$ 1.15 billion resulting from the sale of 42.4 % of
debitel's shares, i.e. the telecommunications unit. debis created about 3,600
new jobs in 1999.
DaimlerChrysler Aerospace (Dasa)
In 1999, the Aerospace division increased revenues by 5 % to Euro
9.2/$ 9.3 billion and operating profit by 17 % to Euro 730/$ 735 million.
Revenue growth was especially strong at the Commercial Aircraft business unit,
where higher sales of Airbus aircraft and aircraft components led to a growth
of 13 %. Dasa holds a 37.9 percent stake in the European Airbus consortium,
which in 1999 was ranked No. 2 in the world for passenger aircraft sales, and
for the first time ranked No. 1 for incoming orders.
The upcoming merger of Dasa, the French company Aerospatiale Matra and
CASA of Spain to form EADS will create the largest aerospace company in Europe
and the third-largest worldwide.
Other industrial businesses
Revenues at Adtranz, the rail systems business unit, were up 7 % to Euro
3.6/$ 3.6 billion. However, earnings remained negative. In December 1999,
Adtranz began a comprehensive restructuring program that is expected to
achieve a turnaround at the rail systems company in 2000.
The Automotive Electronics business unit (TEMIC) posted a 18 % increase in
revenues to Euro 0.9/$ 0.9 billion. Earnings also increased.
The MTU/Diesel Engines business unit recorded slightly increased revenues
of Euro 1.0/$ 1.0 billion and was also able to improve earnings slightly.
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.
DaimlerChrysler - Figures for 1999
DaimlerChrysler Group 1999 1998 99:98
(Euro) U.S.-$ (Euro) Change*
Operating Profit, in millions 11,012 11,089 8,593 +28%
Operating Profit, adjusted**,
in millions 10,316 10,388 8,583 +20%
Net Income, in millions 5,746 5,785 4,820 +19%
Net Income, adjusted**,
in millions 6,226 6,270 5,350 +16%
Net Income per Share (EPS) 5.73 5.77 5.03 +14%
Net Income per Share, adjusted** 6.21 6.25 5.58 +11%
Net Operating Income,
in millions 7,032 7,081 6,359 +11%
Return on Net Assets (RONA) 13.2% 12.7% +0.5%-p
Dividend proposed 2.35 2.37 2.35 +/- 0%
Revenues, in millions 149,985 151,035 131,782 +14%
Employees 466,938 441,502 +6%
Operating Profit by Segments 1999 1998 99:98
in millions (Euro) U.S.-$ (Euro) Change*
Mercedes-Benz Passengers
Cars & smart 2,703 2,722 1,993 +36%
Chrysler Group 5,051 5,086 4,255 +19%
Chrysler Group, adjusted** 5,190 5,226 4,255 +22%
Commercial Vehicles 1,067 1,075 946 +13%
DaimlerChrysler Services (debis) 2,039 2,053 985 +107%
DaimlerChrysler Services,
adjusted** 1,026 1,033 949 +8%
DaimlerChrysler Aerospace (Dasa) 730 735 623 +17%
Others (399) (402) (130) -207%
Others, adjusted** (221) (223) (224) +1%
Revenues by Segments 1999 1998 99:98
in millions (Euro) U.S.-$ (Euro) Change*
Mercedes-Benz Passenger Cars
& smart 38,100 38,367 32,587 +17%
Chrysler Group 64,085 64,534 56,412 +14%
Commercial Vehicles 26,695 26,882 23,162 +15%
DaimlerChrysler Services
(debis) 12,932 13,023 11,410 +13%
DaimlerChrysler Aerospace
(Dasa) 9,191 9,255 8,770 +5%
Others 5,852 5,893 3,526 +66%
DaimlerChrysler - Figures for 4th quarter 1999
DaimlerChrysler Group IV/99 IV/98 99:98
(Euro) U.S.-$ (Euro) Change*
Operating Profit, in millions 2,366 2,383 1,724 +37%
Operating Profit, adjusted**,
in millions 2,673 2,692 1,958 +37%
Net Income, in millions 1,136 1,144 609 +87%
Net Income, adjusted**,
in millions 1,592 1,603 1,205 +32%
Net Income per Share (EPS) 1.13 1.14 0.61 +85%
Net Income per Share, adjusted** 1.59 1.60 1.22 +30%
Revenues, in millions 41,437 41,727 34,653 +20%
Operating Profit by Segments IV/99 IV/98 99:98
in millions (Euro) U.S.-$ (Euro) Change*
Mercedes-Benz Passengers
Cars & smart 848 854 450 +88%
Chrysler Group 1,248 1,257 673 +85%
Commercial Vehicles 262 264 160 +64%
DaimlerChrysler Services (debis) 167 168 242 -31%
DaimlerChrysler Services,
adjusted** 296 298 234 +26%
DaimlerChrysler Aerospace (Dasa) 263 265 282 -7%
Others (246) (248) (87) -183%
Others, adjusted** (68) (68) (39) -74%
Revenues by Segments IV/99 IV/98 99:98
in millions (Euro) U.S.-$ (Euro) Change*
Mercedes-Benz Passenger
Cars & smart 10,915 10,991 8,964 +22%
Chrysler Group 17,366 17,488 13,855 +25%
Commercial Vehicles 7,280 7,331 6,209 +17%
DaimlerChrysler Services (debis) 3,753 3,779 3,228 +16%
DaimlerChrysler Aerospace (Dasa) 2,848 2,868 2,748 +4%
Others 2,041 2,055 1,152 +77%
* based on Euro figures
** for one-time effects
Exchange rate used for conversion: 1 U.S.-$ = Euro 1.0070 (Noon Buying
Rate of the Federal Reserve Bank of New York on December 31, 1999).