- 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/Stuttgart - DaimlerChrysler 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
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.
The Chrysler Group division, with its Chrysler, Jeep®, Dodge, and Plymouth-brands,
shipped 923,600 vehicles in the first quarter compared to 835,900 a year ago, achieving an
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.
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
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 %.
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).
(April 19, 2000)