DaimlerChrysler Achieves EUR 5.7 Billion Operating Profit in 2003
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Operating profit from ongoing business of more than EUR 5 billion
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Net income of EUR 0.4 billion
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Group revenues of EUR 136.4 billion
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Board of Management proposes a dividend of EUR 1.50 per share for 2003
DaimlerChrysler (stock-exchange abbreviation DCX) has announced preliminary figures for the Group’s performance in the 2003 financial year. An operating profit of EUR 5.7 billion was achieved (2002: EUR 6.9 billion). This figure included restructuring expenses of EUR 469 million in line with Chrysler Group’s turnaround plan that was decided on in 2001, relating to for example the sale or closure of component factories and additional job reductions. On the other hand, operating profit also includes a capital gain of EUR 1.0 billion from the sale of the MTU Aero Engines business unit. Thus, operating profit excluding these two items amounted to EUR 5.1 billion. DaimlerChrysler therefore achieved its own goal for its ongoing business in last year´s very difficult market environment.
Net income amounted to EUR 0.4 billion (2002: EUR 4.7 billion), and earnings per share were EUR 0.44 (2002: EUR 4.68). The main reasons for the reduction in net income were the lower operating profit than in the prior year, and the impairment of EUR 2.0 billion on DaimlerChrysler’s investment in EADS. This impairment had to be recognized at the end of the third quarter due to United States Generally Accepted Accounting Principles (US GAAP) and the regulations of the United States Securities and Exchange Commission (SEC). However, on December 31, 2003, as a result of the higher EADS share price, the market value of DaimlerChrysler´s EADS holding again exceeded the reduced carrying value by around EUR 1.4 billion.
DaimlerChrysler’s total revenues in 2003 decreased by 7% to EUR 136.4 billion. Adjusted for currency translation effects, revenues increased by 3%.
The Board of Management proposes to the Supervisory Board that a dividend of EUR 1.50 per share should be distributed for the 2003 financial year (2002: EUR 1.50). The total dividend distribution would then amount to EUR 1.519 billion (2002: EUR 1.519 billion). The final decision on the level of the dividend will be taken at the Annual Meeting, which is to be held in Berlin on April 7, 2004.
DaimlerChrysler will present details of the 2003 consolidated financial statements at the Annual Press Conference on February 19, 2004.
DaimlerChrysler – key figures for 2003
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DaimlerChrysler Group |
2003 |
2002 | |
|
U. S.-$ |
EUR (Euro) |
EUR (Euro) | |
|
Revenues, in millions (1) |
171,870 |
136,437 |
147,368 |
|
Operating profit, in millions |
7,163 |
5,686 |
6,854 (2) |
|
Net income, in millions |
564 |
448 |
4,718 (2) |
|
Earnings per share |
0.55 |
0.44 |
4.68 (2) |
|
Proposed dividend |
1.50 |
1.50 | |
(1) Adjusted for currency translation effects increase by 3%
(2) In 2002, one-time effects had a net positive impact on operating profit, net income and eps (e.g. sale of T-Systems).
Currency translation: EUR 1 = US $1.2597 (noon buying rate on December 31, 2003)
This document contains forward-looking statements that reflect the current views of DaimlerChrysler management with respect to future events. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "project" and "should" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: changes in general economic and business conditions, especially an economic downturn in Europe or North America; changes in currency exchange rates and interest rates; introduction of competing products; lack of acceptance of new products or services, including increased competitive pressures on the general level of sales incentives and pricing flexibility; inability to implement the turnaround plans for the Chrysler Group and Freightliner promptly and successfully, especially an inability to meet revenue enhancement, efficiency and cost reduction initiatives; the ability of Mitsubishi Motors to implement its restructuring plan successfully; and decline in resale prices of used vehicles. If any of these or other risks and uncertainties occur (some of which are described under the heading "Risk Factors" in DaimlerChrysler's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission), or if the assumptions underlying any of these statements prove incorrect, then actual results may be materially different from those expressed or implied by such statements. DaimlerChrysler does not intend or assume any obligation to update these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made.
