DaimlerChrysler Reports Revenues Growth of 17% in the First Quarter
19 April 2000
DaimlerChrysler Reports Revenues Growth of 17% in the First Quarter
* Revenues increase to Euro 41.0/$39.2 billion on record sales
* Operating profit of Euro 2.5/$2.3 billion on last year's record level,
despite intense competition
* Net income and earnings per share up 3% to Euro 1.7/$1.6 billion and
Euro 1.69/$1.62 respectively
* Important strategic decisions will further strengthen
DaimlerChrysler's leading position in the global automotive markets
* Juergen E. Schrempp at the Annual Shareholders Meeting: "A sound basis
for further profitable growth in 2000 and beyond"
AUBURN HILLS, Mich. and STUTTGART, Germany, April 19 DaimlerChrysler (stock exchange symbol: DCX) today reported an increase in
revenues of 17% to Euro 41.0/$39.2 billion in the first quarter (first quarter
1999: Euro 35.0/$33.5 billion). Strong demand for DaimlerChrysler products in
major markets produced double digit percentage growth rates in revenues for
almost all divisions.
With the introductions of new, attractive products such as the Mercedes-
Benz C-Class, the Chrysler PT Cruiser and the upcoming rollout of the Chrysler
and Dodge minivans, DaimlerChrysler expects to surpass 1999 record sales
figures in 2000.
DaimlerChrysler recorded a first quarter 2000 operating profit on last
year's record level, with Euro 2.5/$2.3 billion. The decrease of 3% (first
quarter 1999: Euro 2.5/$2.4 billion, adjusted for the one-time effect of the
debitel IPO) is attributed mainly to intense competition, especially in North
America.
First quarter net income increased to Euro 1.7/$1.6 billion, compared to
Euro 1.6/$1.6 billion in 1999 (figure adjusted for one-time effect of German
tax reform and debitel IPO). Earnings per share were Euro 1.69/$1.62 compared
to Euro 1.64/$1.57 in the first quarter 1999.
Free cash flow of the industrial business almost doubled to Euro 1.6
billion, despite additional investments of Euro 1 billion compared to the
first quarter 1999.
Schrempp: "Further profitable growth"
Commenting on DaimlerChrysler's performance, Chairman Juergen E. Schrempp
said: "Our company's strong momentum continued in the first quarter. Our
unique products, strong brands and global reach create a sound basis for
further profitable growth in the year 2000 and beyond. From today's
perspective, we anticipate a further increase in earnings per share for the
full year."
Commenting on recent decisions, Schrempp said: "The strategic decisions
taken in the first quarter, especially the planned alliance with Mitsubishi
Motors, will further strengthen DaimlerChrysler's position in the global
automotive markets. Our alliance with Mitsubishi Motors will give us much
greater access to Asia. In addition, it will strengthen our position in
growth markets like Latin America, Eastern Europe, and Africa, and bring us to
our goal of providing the full automotive product range from small cars to
heavy trucks."
"Following the agreement with Deutsche Telekom to acquire a 50.1% stake in
the IT Services unit debis Systemhaus through a capital increase, debis will
now focus even more on services related to the automotive business," Schrempp
said. "We plan to invest significantly in additional services along the
automotive value chain, including financing and leasing, insurance, fleet
management, and telematics. This will be supported by additional activities
in e-commerce."
Shareholders to vote on share buy-back program
At its second annual meeting of shareholders today in Berlin, Germany,
DaimlerChrysler will propose an unchanged dividend for 1999 of Euro 2.35/
approx. $2.25 per share. The total dividend pay out of Euro 2.4/$2.3 billion
is the highest among companies in Germany's DAX index. The company will also
ask shareholders to authorize a share buy-back program and a new stock option
plan for DaimlerChrysler management.
Mercedes-Benz Passenger Cars & smart
The Mercedes-Benz Passenger Cars & smart division posted sales of 260,400
units, up 7% compared to the first quarter of 1999. The division increased
revenues by 17% to Euro 9.9/$9.5 billion. Operating profit was up 11% to Euro
591/$566 million, despite introduction costs of the new C-class. Sales in the
first three months were especially favorable for the E-class (+5% to 60,100
units), S-class (+27% to 22,400 units) and M-class (+46% to 27,700 units).
Moreover, 18,500 smart were sold, a plus of 122%. With customer orders coming
in at 1,200 a day in Germany alone, the new Mercedes-Benz C-class will
contribute to further volume growth.
Chrysler Group
The Chrysler Group division, with its Chrysler, Jeep(R), Dodge, and
Plymouth-brands, shipped 923,600 vehicles in the first quarter compared to
835,900 a year ago, achieving a 10% increase. Revenues increased 24% to Euro
19.0/$18.2 billion. Due to intensified competition, greater margin pressure,
increased interest rates in North America and expenses for product launches,
operating profit could not match the previous year's record figure and
decreased by 7% to Euro 1.4/$1.3 billion. The economic outlook for the NAFTA
region remains positive, although competitive pressures are expected to
continue. The Chrysler Group plans to launch the all new minivan and midsize
car line-ups later in the year, continuing an ambitious product development
program. Also, the Chrysler Group expects to achieve worldwide vehicle sales
of over 3.2 million units for the year 2000.
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 by 7% to 136,100 units. Revenues rose by 11% to Euro
6.8/$6.5 billion. Operating profit was Euro 246/$236 million, an increase of
34% compared to Euro 183/$175 million in first quarter 1999. Markets in Latin
America and Turkey have recovered markedly in recent months. The Commercial
Vehicles division expects sales and revenues in 2000 to reach 1999 level,
although it is expected that the North American heavy truck market will not
again reach the 1999 highs.
DaimlerChrysler Services (debis)
DaimlerChrysler Services (debis) continued to grow, particularly
internationally. Revenues increased by 42% to Euro 4.0/$3.8 billion.
Operating profit was up 5% to Euro 195/$187 million, but was influenced by
higher interest rates and increased margin pressure.
DaimlerChrysler Aerospace (Dasa)
DaimlerChrysler Aerospace (Dasa) increased operating profit in the first
three months of 2000 by 26% to Euro 117/$112 million. With Euro 1.9/$1.8
billion, revenues remained on last year's level, due to invoicing factors.
Revenues growth was achieved in the Commercial Aircraft and Aeroengines
business units. The establishment and Initial Public Offering of the European
Aeronautic Defence and Space Company (EADS), into which Dasa will merge with
its French partner Aerospatiale Matra and its Spanish partner CASA, is
expected in summer 2000.
Other industrial businesses
Revenues at Adtranz, the rail systems business unit, were up 1% to Euro
0.7/$0.7 billion. The Automotive Electronics business unit (TEMIC) posted a
20% increase in revenues to Euro 0.3/$0.3 billion. The MTU/Diesel Engines
business unit recorded increased revenues of Euro 0.2/$0.2 billion, up 8%.
DaimlerChrysler - Figures for 1st Quarter 2000
Exchange rate used for conversion: Euro 1 = U.S. - $0.9574
(Noon Buying Rate of the New York Federal Reserve Bank on March 31, 2000)
1) based on Euro figures
2) adjusted for one-time effects
DaimlerChrysler Group Q1 2000 Q1 1999 00:99
(Euro) U.S.-$ (Euro) Change (1)
Operating Profit,
in millions 2,452 2,348 2,523 (2) -3%
Net Income, in millions 1,693 (2) 1,621 (2) 1,639 (2) +3%
Earnings per share (EPS) 1.69 (2) 1.62 (2) 1.64 (2) +3%
Revenues, in millions 40,963 39,218 34,990 +17%
Employees 466,964 456,440 +2%
Operating Profit by Segments Q1 2000 Q1 1999 00:99
in millions (Euro) U.S.-$ (Euro) Change (1)
Mercedes-Benz Passengers
Cars & smart 591 566 531 +11%
Chrysler Group 1,353 1,295 1,456 -7%
Commercial Vehicles 246 236 183 +34%
Services 195 187 186 (2) +5%
Aerospace 117 112 93 +26%
Others (73) (70) 74 -199%
Revenues by Segments Q1 2000 Q1 1999 00:99
in millions (Euro) U.S.-$ (Euro) Change (1)
Mercedes-Benz
Passenger Cars & smart 9,894 9,473 8,440 +17%
Chrysler Group 18,971 18,163 15,291 +24%
Commercial Vehicles 6,805 6,515 6,149 +11%
Services 3,956 3,787 2,791 +42%
Aerospace 1,854 1,775 1,920 -3%
Others 1,193 1,142 1,318 -9%
Unit Sales by Segments Q1 2000 Q1 1999 00:99
Mercedes-Benz
Passenger Cars & smart 260,400 243,500 +7%
Chrysler Group 923,600 835,900 +10%
Commercial Vehicles 136,100 127,600 +7%
Exchange rate used for conversion: 1 Euro = U.S.- $0.9574 (Noon Buying
Rate of the New York Federal Reserve Bank on March 31, 2000).
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," "will" and
"project" as well as similar words and expressions used to predict future
results and occurances 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 and programs, 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.