6-K 1 a05-2144_36k.htm 6-K

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of February 2005

 

DAIMLERCHRYSLER AG

(Translation of registrant’s name into English)

 

EPPLESTRASSE 225, 70567 STUTTGART, GERMANY

(Address of principal executive office)

 

[Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.]

 

Form 20-F

 

ý

 

Form 40-F

 

o

 

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]

 

Yes

 

o

 

No

 

ý

 

[If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                            ]

 

This report on Form 6-K is hereby incorporated by reference in the registration statement on Form F-3 of DaimlerChrysler North America Holding Corporation (Registration Statement No. 333-13160) and the registration statements on Form S-8 (Nos. 333-5074, 333-7082, 333-8998, 333-86934 and 333-86936) of DaimlerChrysler AG

 

 




 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

This document contains forward-looking statements that reflect management’s current views with respect to future events. The words „anticipate,“ „assume,“ „believe,“ „estimate,“ „expect,“ „intend,“ „may,“ „plan,“ „project“ and „should“ and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: an economic downturn in Europe or North America; changes in currency exchange rates, interest rates and in raw material prices; introduction of competing products; increased sales incentives; 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 Report” in DaimlerChrysler’s most recent Annual Report and 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. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.

 

These figures are preliminary and have neither been approved yet by the Supervisory Board nor audited by the external auditor. Publication of Annual Report and Consolidated Financial Statement is scheduled for February 23, 2005. Publication of Form 20-F Report is scheduled for February 28, 2005.

 

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DAIMLERCHRYSLER

 

Contacts

 

Press Information

Thomas Fröhlich

+49 (0)7 11/17-9 33 11

 

Han Tjan

+1 212 909 9063

Date

 

 

February 10, 2005

 

DaimlerChrysler achieves an operating profit of €5.8 billion

 

   Net income of €2.5 billion (2003: €0.4 billion)

 

   Earnings per share of €2.43 (2003: €0.44)

 

   Revenues up 4% to €142.1 billion

 

   Operating Profit in 2005 expected to be slightly higher than in 2004

 

Stuttgart/Auburn Hills. DaimlerChrysler (stock-exchange abbreviation DCX) has today published its preliminary consolidated financial statements and the divisions’ results for the year 2004.

 

The operating profit with €5.8 billion was, as stated before, considerably higher than €5.1 billion, the operating profit of Full Year 2003 excluding restructuring expenditures at the Chrysler Group and excluding the capital gain realized on the sale of MTU Aero Engines. This increase was primarily due to the improved earnings of the Chrysler Group and in the Commercial Vehicles divisions. The profit contribution from the Services division was at the high level of the prior year, despite the charge from Toll Collect. The contribution to the Group’s operating profit from the Mercedes Car Group decreased sharply, however. The Group's result was negatively impacted by considerable charges from Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Toll Collect.

 



 

The Chairman of the Board of Management of DaimlerChrysler AG, Prof. Jürgen E. Schrempp, stated at the Annual Results Press Conference in Sindelfingen: “One of DaimlerChrysler's key strengths is its ability not only to compensate at the Group level for differing cycles in the divisions and varying regional developments, but also to achieve growth in earnings. The year 2004 shows that our strategy works well – even in such a challenging competitive environment.”

 

Net income rose from €0.4 billion to €2.5 billion. Earnings per share of €2.43 were also significantly higher than in the prior year.

 

The Board of Management will propose to the Supervisory Board that an unchanged dividend of €1.50 per share should be distributed (2003: €1.50). This proposal takes account not only of the development of operating profit and cash flow in 2004, but also of expectations for the coming years.

 

The Group’s workforce will also participate from the positive business developments. DaimlerChrysler’s management and representatives of its employees have together fixed the details of the profit-related bonus for 2004. For some 144,000 employees of DaimlerChrysler AG in Germany, the bonus for 2004 has been set at €1,100. It will be paid out together with wages and salaries in April 2005. Consistent with the collective bargaining agreement, this year’s profit-related bonus for the 68,000 entitled employees of the Chrysler Group in the United States will average $1,500 and will be paid out in March 2005.

 

The total compensation of the Board of Management decreased by 22.5% from €40.8 million to €31.6 million in 2004. The compensation for the activities of the members of the Supervisory Board of DaimlerChrysler AG amounted to €2.0 million (2003: €2.8 million).

 

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In the industrial business, DaimlerChrysler generated a free cash flow of €1.8 billion. The net liquidity of the industrial business thus continued to improve from €1.8 billion to €2.2 billion – despite an allocation to the pension funds of €1.6 billion and despite the high dividend distribution (€1.5 billion) in 2004.

 

Growth in unit sales and revenues

 

DaimlerChrysler sold a total of 4.7 million vehicles in 2004, surpassing the level of the prior year by 8%. The DaimlerChrysler Group’s revenues increased by 4% to €142.1 billion. Adjusted for currency-translation effects and changes in the consolidated Group, revenues were actually 7% higher than in the prior year.

 

The workforce

 

As of December 31, 2004, DaimlerChrysler employed 384,723 people worldwide (end of 2003: 362,063). This was an increase of more than 6%. Of this total, 185,154 were employed in Germany (2003: 182,739) and 98,119 in the United States (2003: 102,391). Employment rose sharply in the Commercial Vehicles division in particular, due to new recruitment in Europe and North America and above all the consolidation of Mitsubishi Fuso Truck and Bus Corporation (MFTBC) with 18,281 employees. Adjusted for changes in the consolidated Group, the DaimlerChrysler workforce grew by 2% (+8,413).

 

Investing to secure the future

 

Last year, the DaimlerChrysler Group invested a total of €6.4 billion in property, plant and equipment (2003: €6.6 billion). The focus of the investment of €2.3 billion by the Mercedes Car Group was on expanding the plants in Rastatt and Tuscaloosa/USA for the production of the

 

 

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new A-Class and M-Class vehicle families, production preparations for the next S-Class model, and the expansion of production facilities for the new diesel and gasoline engines. The Chrysler Group’s investments of €2.6 billion were primarily applied to prepare for the production of the nine new models launched in 2004, including the very successful Chrysler 300C and the Dodge Magnum, and at least five additional models to come in the year 2005. Important projects in the Commercial Vehicles division, which invested a total of €1.2 billion, included the new Euro-4 truck engines and preparations for the successor to the Sprinter.

 

Research and development expenditure totaled €5.7 billion in 2004 (2003: €5.6 billion). Of this total, €2.6 billion was accounted for by the Mercedes Car Group. This division’s most important projects were the B-Class and R-Class sports tourers and the successors to the M-Class and S-Class models as well as completely new engine families. Research and development work at the Chrysler Group was influenced by the product offensive; efficiency improvements were achieved once again in terms of the yield on the funds applied. R&D expenditure by the Chrysler Group was at €1.6 billion. €1.2 billion was applied for research and development by Commercial Vehicles (2003: €0.9 billion).

 

In the planning period of 2005 through 2007, DaimlerChrysler expects to invest a total of €21 billion in property, plant and equipment. DaimlerChrysler plans to invest substantial funds in the context of the Group’s involvement in China. For research and development activities, DaimlerChrysler will spend a total of €17 billion in the period of 2005 through 2007, thus maintaining the high level of recent years.

 

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Mercedes Car Group

 

The Mercedes Car Group sold 1,226,800 vehicles in 2004 (2003: 1,216,900). For model life-cycle reasons, unit sales of the Mercedes-Benz brand were 2% lower than in the prior year, however. smart’s unit sales increased by 22% due to the launch of the smart forfour.

 

The division’s revenues decreased slightly to €49.6 billion (2003: €51.5 billion). This development was due to exchange-rate effects and the changed model mix of Mercedes-Benz passenger cars, which was primarily caused by lifecycle-related factors.

 

At €1.7 billion, operating profit was significantly lower than the €3.1 billion posted in 2003. This was due partially to the changed model mix and exchange-rate effects, but also due to the high launch costs for new products and the costs of the quality offensive at Mercedes-Benz. In addition, the contribution from the smart brand was significantly negative as a result of higher marketing expenses and launch costs for the smart forfour.

 

The Mercedes Car Group started a comprehensive program designed to improve efficiency and increase earnings. With the CORE program, the Mercedes Car Group aims to improve its performance by more than €3 billion. As a result, the division should once again achieve a return on sales of 7% in 2007. It also expanded its quality offensive in 2004. For the smart brand, a business model is now being prepared with the goals of increasing unit sales as a result of measures taken in the sales network, improving cost structures and boosting productivity.

 

With its product and marketing offensive, the Mercedes-Benz brand has succeeded in making its product range even more attractive and significantly younger, and in defending its position as the world’s most

 

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successful premium brand, despite intense competition.

 

The second-generation SLK roadster, which was presented to the public in the spring of 2004, is Number 1 worldwide in its segment. In April 2004, deliveries to customers began of the new super sports car Mercedes-Benz SLR.

 

In the early summer, Mercedes-Benz launched the new generation of the C-Class. The response to the new C-class has been very positive, with the model becoming the global market leader in its segment shortly after it was launched. In September 2004, the first units of the new CLS-Class were delivered to customers; this is the first four-door coupe in the world to go into series production. Demand is very strong for the new A-Class, deliveries of which also began in September.

 

At the 2004 Paris Motor Show, the European version of the “Vision R” grand sports tourer, and for the first time also the new “Vision B” compact sports tourer were presented to the public. The response from both the public and the press was very positive. These two vehicles will be launched in the summer of 2005 as the R-Class and the B-Class. They will extend the M-Class and the A-Class into product families. With these models and the new S-Class to be launched in the fall of 2005, the Mercedes-Benz brand intends to further extend its leading position in the premium segment in the coming years.

 

More than 500 exclusive Maybach sedans were delivered to customers worldwide in the year 2004.

 

A sales offensive was started for the smart brand, which has become well established with its unique products in many markets within just a few years. The goal is to utilize the potential of the brand even better than before. At the same time, new markets were gradually added. And

 

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with the smart forfour, which was launched in April 2004, smart established itself as a multi-product brand.

 

Chrysler Group

 

Worldwide, the Chrysler Group posted factory unit sales (shipments) of 2.8 million passenger cars, minivans, sport-utility vehicles and light trucks of the Chrysler, Dodge and Jeep® brands in 2004, a 5% increase over 2003. Worldwide retail sales increased by 4% to 2.7 million vehicles.

 

The Chrysler Group’s revenues of €49.5 billion were at the same level as in the prior year; calculated in US dollars, the increase was 10%.

 

The Chrysler Group’s business development was very positive in 2004, despite the continuation of difficult market conditions in North America: After reporting an operating loss of €506 million in the prior year, in 2004 the Chrysler Group achieved an operating profit of €1.4 billion. Lower average price incentives also contributed to the better result.

 

In the past four years, the Chrysler Group significantly improved its product quality and raised its manufacturing productivity, resulting in a sustained improvement in its competitive position. According to the “Harbour Report 2004”, the Chrysler Group increased manufacturing productivity by 7.8%. This is the second consecutive year in which the Chrysler Group posted the largest year-over-year improvement among all automotive manufacturers. And according to the “Initial Quality Survey” carried out by J.D. Power, the quality of Chrysler, Jeep® and Dodge vehicles improved by 11% compared with the prior year.

 

In the year 2004, the Chrysler Group continued its product offensive

 

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with nine new products. This represents the greatest number of new models in a single year in the company’s history, and gives it one of the youngest product line-ups in the industry. The model offensive will continue in the years to come. For example, the company will launch several highly anticipated products in 2005, including the Dodge Charger, and the Jeep® Commander, which will be the first Jeep® vehicle ever with three-row seating.

 

With the 300 and 300C sedans, the Chrysler Group has made an impact on the US market for passenger cars: these models quickly achieved a market share of about 30% in their segment during nine months in the market place. The 300C has also been very well received in Europe. Additional new Chrysler models in the year 2004 were the Chrysler PT Cruiser convertible and the Chrysler Crossfire roadster, which continue the brand’s long and successful tradition of open-air driving. Last year’s new products from the Dodge brand included the Dodge Magnum, the Dodge Dakota and the Dodge Ram SRT-10. Chrysler Group vehicles received more than 70 awards in 2004.

 

Commercial Vehicles

 

In a favorable economic environment in 2004, the Commercial Vehicles division boosted its unit sales by 42% to 712,200 trucks, vans and buses. This figure includes 118,100 vehicles of the business unit MFTBC, which was consolidated in April 2004. With the acquisition of a majority stake in MFTBC, DaimlerChrysler has further extended its position as global market leader for commercial vehicles. Even without the consolidation of MFTBC, the number of 594,100 units sold significantly exceeds the previous record set in 1999 (554,000). The increase in unit sales excluding MFTBC amounted to 19% in 2004.

 

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Revenues also grew substantially to €34.8 billion (2003: €26.8 billion). Once again, even without MFTBC there would still have been strong growth of 16%.

 

Operating profit of €1.3 billion was far higher than the prior-year earnings of €0.8 billion. This strong result was achieved although the Commercial Vehicles division was burdened by charges of €475 million relating to the expenditure arising at MFTBC for quality measures and recall campaigns. The main reasons for the earnings improvement were the substantially higher unit sales and the successful implementation of efficiency programs.

 

DaimlerChrysler has meanwhile successfully claimed compensation for the quality problems at MFTBC. At the beginning of this week, the DaimlerChrysler Supervisory Board and the Board of Directors of Mitsubishi Motors Corporation approved a letter of intent regulating compensation for the expenses that DaimlerChrysler has incurred due to those quality problems. An appropriate contract will now be prepared on this basis.

 

Thanks to the success of the new products and increased demand in the key markets, as well as the full consolidation of MFTBC, sales by Trucks business segment increased by 57% to 403,300 vehicles. With unit sales of 137,400 vehicles, the Trucks Europe/Latin America (Mercedes-Benz) business unit sold 24% more vehicles than in the prior year, thus setting a new record. The Trucks NAFTA business unit (Freightliner, Sterling, Thomas Built Buses) also achieved a strong increase in truck sales of 22% to 152,400 vehicles. MFTBC recorded unit sales of 118,100 trucks and buses. Its decrease in Japan was offset by strong growth in South East Asia, the Middle East and in Europe. The Mercedes-Benz vans business unit posted sales of 260,700 units in 2004 (2003: 230,900). The DaimlerChrysler Buses

 

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business unit achieved a new record with sales of 32,800 units (+16%).

 

The new medium-duty truck Atego 2 and the new Axor 2 were presented in 2004. The two trucks use a large number of shared parts and feature numerous innovations. With the launch of the Atego in Brazil in the summer of 2004, the business unit Trucks Europe/Latin America continued to implement its strategy of selling the European product range in all of the business unit’s key markets and thus achieving economies of scale. This goal is also served in the NAFTA region by assembling axles that share many parts with the axles produced in Europe. The increase in unit sales by the Vans business unit is mainly due to the success of the Sprinter and the Vito and the Viano model series, which were in great demand in all major regions. The new Vito introduced in 2003 was named “Van of the Year 2005”. The positive development of DaimlerChrysler Buses was primarily a result of the continuous further enhancement of the full-line product portfolio and the business unit’s technology leadership.

 

Services

 

The Services division continued its positive business development in the year 2004. Its operating profit of €1.25 billion was at last year’s high level (2003: €1.24 billion), despite the charges of €472 million from Toll Collect.

 

New business increased by 7% to €50.9 billion primarily due to the close cooperation with the vehicle divisions. The increase was also assisted by specialized programs, which were given a very positive reception by customers. An additional factor was that DaimlerChrysler Services launched new financial services products in 2004. Contract volume rose to €102.4 billion (2003: €98.2 billion). In total, the portfolio consisted of 6.6 million leased and financed vehicles in 39 countries

 

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at the end of 2004.

 

In order to increase new business and profitability in North America, bonus programs were introduced, and activities designed to enhance customer retention were further expanded. DaimlerChrysler Services Truck Finance introduced a full-service leasing program for the Freightliner brand that allows customers to supplement their financing and leasing contracts with an additional maintenance contract.

 

DaimlerChrysler Bank continued with the expansion of its core areas of leasing and financing in 2004. New business increased by 9% to €8.2 billion, and contract volume was up 10% to €14.5 billion. DaimlerChrysler Bank also expanded its portfolio in 2004 to include new attractive products such as auto insurance.

 

In China, preparations continued for the launch of financing activities in that country. In November, DaimlerChrysler Services received a provisional permit to commence business activities, and it plans to support sales of Group vehicle brands in China with its own financing company.

 

Following the successful execution of important tests of the satellite-based toll-collection system and a full trial confirming the functionality and compatibility of the various system components, Toll Collect was granted a provisional operating permit at the end of 2004. The toll system then started smoothly on January 1, 2005.

 

Other Activities

 

The Other Activities segment consists of the Group’s 33% holding in the European Aeronautic Defence and Space Company (EADS) and, since January 1, 2004, the DaimlerChrysler Off-Highway business

 

11



 

unit. The prior-year figures have been adjusted for comparability. As DaimlerChrysler did not participate in a capital increase for Mitsubishi Motors Corporation (MMC), the Group’s ownership interest in MMC decreased from 37% to 19.7% at the end of 2004. As a result, since June 30, 2004, the shareholding in Mitsubishi Motors has been included in the consolidated financial statements as a financial investment shown at fair value.

 

The Other Activities’ operating profit decreased from €1.3 billion to €0.5 billion last year. The reason for the reduction is that the operating profit for the prior year included the profit contribution from MTU Aero Engines, as well as the gain of €1.0 billion realized on the disposal of this unit.

 

At €1.75 billion, DaimlerChrysler Off-Highway’s revenues in 2004 were about 2% higher than in the prior year. The business unit’s incoming orders totaled €1.84 billion, 7% higher than the figure for 2003.

 

Thanks to increased demand in the civil-aviation sector, EADS performed very well in 2004, and significantly increased its contribution to Group operating profit. The company publishes its figures for the 2004 financial year on March 9, 2005.

 

Outlook

 

Assuming a moderate increase in the worldwide demand for automobiles, the DaimlerChrysler Group expects total unit sales to increase in 2005 and the following years. Higher unit sales by all divisions will contribute to this development. Revenues should also continue rising.

 

After a weaker first and second quarter, for the full-year 2005

 

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DaimlerChrysler expects a slightly higher operating profit than in the previous year. Significant earnings improvements are to be expected as of the year 2006, when the Mercedes Car Group’s product offensive takes full effect and additional new models become available from the Chrysler Group. A key contribution to this positive earnings development will also be made by the efficiency-enhancing programs which will be pushed steadily forward in all divisions.

 

A fundamental condition for the targeted increase in earnings is a generally stable economic and political situation and a further moderate up-turn in worldwide demand for automobiles that is expected for the years of 2005 through 2007. Challenges may arise, however, from a continuation of the weak US dollar and high raw-material prices.

 

Due to the planned development of unit sales and the expected productivity advances, DaimlerChrysler assumes that employee numbers will remain fairly constant in the years of 2005 through 2007, both for the Group as a whole and in the individual divisions.

 

Additional charts showing figures for the 2004 financial year can be found on the Internet at: http://www.daimlerchrysler.com/go/press/2005e

 

These figures are preliminary and have neither been approved yet by the Supervisory Board nor audited by the external auditor. Publication of Annual Report and Consolidated Financial Statement is scheduled for February 23, 2005. Publication of Form 20-F Report is scheduled for February 28, 2005.

 

This document contains forward-looking statements that reflect management’s current views with respect to future events. The words „anticipate,” „assume,” „believe,” „estimate,” „expect,” „intend,” „may,” „plan,” „project” and „should” and similar expressions identify forward-looking statements. Such statements are subject toc risks and uncertainties, including, but not limited to: an economic downturn in Europe or North America; changes in currency exchange rates, interest rates and in raw material prices; introduction of competing products; increased sales incentives; 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 Report” in DaimlerChrysler’s most recent Annual Report and under the heading “Risk Factors”

 

13



 

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. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.

 

Further information about DaimlerChrysler is available on the Internet at: www.media.daimlerchrysler.com.

 

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DaimlerChrysler – Figures for 2004

 

 

 

2004

 

2003

 

DaimlerChrysler-Group

 

U.S.-$

 

€ (Euro)

 

€ (Euro)

 

Revenues, in millions

 

192,319

 

142,059

 

136,437

 

Operating Profit, in millions

 

7,790

 

5,754

 

5,686

 

Net Income, in millions

 

3,338

 

2,466

 

448

 

Per Share (EPS)

 

3.29

 

2.43

 

0.44

 

Dividend proposed

 

 

 

1.50

 

1.50

 

Employees (at year-end)

 

384,723

 

362,063

 

 

 

 

 

 

 

 

 

Operating Profit (Loss) by Segments

 

2004

 

2003

 

in millions

 

U.S.-$

 

€ (Euro)

 

€ (Euro)

 

Mercedes Car Group

 

2,255

 

1,666

 

3,126

 

Chrysler Group

 

1,932

 

1,427

 

(506

)

Commercial Vehicles (1)

 

1,803

 

1,332

 

811

 

Services

 

1,692

 

1,250

 

1,240

 

Other Activities (1)

 

617

 

456

 

1,329

 

 

 

 

 

 

 

 

 

Revenues by Segments

 

2004

 

2003

 

in millions

 

U.S.-$

 

€ (Euro)

 

€ (Euro)

 

Mercedes Car Group

 

67,189

 

49,630

 

51,446

 

Chrysler Group

 

67,010

 

49,498

 

49,321

 

Commercial Vehicles (1)

 

47,064

 

34,764

 

26,806

 

Services

 

18,871

 

13,939

 

14,037

 

Other Activities (1)  (2)

 

2,978

 

2,200

 

4,084

 

 

 

 

 

 

 

 

 

Unit Sales by Segments

 

2004

 

2003

 

 

 

Mercedes Car Group

 

1,226,800

 

1,216,900

 

 

 

Chrysler Group

 

2,779,900

 

2,637,900

 

 

 

Commercial Vehicles

 

712,200

 

501,000

 

 

 

 

Rate of exchange: 1 € = U.S.-$ 1.3538 (based on the noon buying rate on Dec. 31, 2004)

 


(1) Figures for previous year have been adjusted to reflect the reallocation of the DaimlerChrysler Off-Highway business unit from the Commercial Vehicles Division to the segment Other Activities. Since March 31, 2004 Mitsubishi Fuso Truck and Bus Corporation (MFTBC) is included with a time lag of one month in the Commercial Vehicles Division.

(2) In 2003 figure for discontinued operations (MTU Aero Engines) included.

 



 

DaimlerChrysler – Figures for the 4th Quarter 2004

 

 

 

Q4/2004

 

Q4/2003

 

DaimlerChrysler-Group

 

U.S.-$

 

€ (Euro)

 

€ (Euro)

 

Revenues, in millions

 

51,099

 

37,745

 

35,211

 

Operating profit, in millions

 

1,063

 

785

 

2,396

 

Net income (Loss), in millions

 

712

 

526

 

1,404

 

Per Share (EPS)

 

0.70

 

0.52

 

1.39

 

Employees (at year-end)

 

384,723

 

362,063

 

 

 

 

 

 

 

 

 

Operating Profit (Loss) by Segments

 

Q4/2004

 

Q4/2003

 

in millions

 

U.S.-$

 

€ (Euro)

 

€ (Euro)

 

Mercedes Car Group

 

27

 

20

 

784

 

Chrysler Group

 

523

 

386

 

143

 

Commercial Vehicles (1)

 

592

 

437

 

344

 

Services

 

196

 

145

 

203

 

Other Activities (1)

 

(28

)

(21

)

1,144

 

 

 

 

 

 

 

 

 

Revenues by Segments

 

Q4/2004

 

Q4/2003

 

in millions

 

U.S.-$

 

€ (Euro)

 

€ (Euro)

 

Mercedes Car Group

 

17,407

 

12,858

 

13,059

 

Chrysler Group

 

17,210

 

12,712

 

12,312

 

Commercial Vehicles (1)

 

13,527

 

9,992

 

7,696

 

Services

 

4,955

 

3,660

 

3,451

 

Other Activities  (1)  (2)

 

1,106

 

817

 

1,274

 

 

 

 

 

 

 

 

 

Unit Sales by Segments

 

Q4/2004

 

Q4/2003

 

 

 

Mercedes Car Group

 

348,300

 

302,400

 

 

 

Chrysler Group

 

718,800

 

639,600

 

 

 

Commercial Vehicles

 

208,700

 

145,000

 

 

 

 

Rate of exchange: 1 € = U.S.-$ 1.3538 (based on the noon buying rate on Dec. 31, 2004)

 


 

(1) Figures for previous year have been adjusted to reflect the reallocation of the DaimlerChrysler Off-Highway business unit from the Commercial Vehicles Division to the segment Other Activities. Since March 31, 2004 Mitsubishi Fuso Truck and Bus Corporation (MFTBC) is included with a time lag of one month in the Commercial Vehicles Division.

(2) In 2003 figure for discontinued operations (MTU Aero Engines) included.

 





















































 

Searchable text section of graphics shown above

 



 

[GRAPHIC]

 

DAIMLERCHRYSLER

 

 

2004 RESULTS

ANNUAL PRESS CONFERENCE

 

Jürgen E. Schrempp

 

Chairman of the Board of Management

 

Stuttgart
February 10, 2005

 



 

 

DaimlerChrysler Group

 

 

 

[LOGO]

 

SIGNIFICANT IMPROVEMENT IN OPERATING PROFIT

 

 

 

2003

 

2004

 

 

 

 

 

 

 

Revenues

 

136.4

bn

142.1

bn

 

 

 

 

 

 

 

 

Operating Profit

 

5.7

bn

5.8

bn

Operating Profit adjusted(1)

 

5.1

bn

 

 

 

 

 

 

 

 

Net income

 

0.4

bn 

2.5

bn

 

 

 

 

 

 

Equity ratio industrial business

 

26.1

%

25.3

%

Net Liquidity industrial business

 

1.8

bn 

2.2

bn

 

 

 

 

 

 

Dividend

 

1.5

 

1.5

 

 


(1)         Excluding Chrysler Group restructuring costs and gain of sale MTU Aero Engines in 2003

 



 

 

CHRYSLER GROUP AND CVD MORE THAN COMPENSATE

DECLINE AT MERCEDES CAR GROUP

 

[CHART]

 


(1)         Excluding Chrysler Group restructuring costs and gain of sale MTU Aero Engines in 2003

 



 

[GRAPHIC]

 

MERCEDES CAR GROUP

 

[LOGO]

 

[LOGO]

 

[LOGO]

 

 

 

 

 

 

 

No. 1

 

No. 2

 

No. 4

 

luxury and

 

super luxury

 

micro cars

 

premium cars

 

USA

 

WEU

 

worldwide

 

 

 

 

 

 

5



 

Mercedes Car Group

 

 

 

[LOGO]

 

DECREASE IN OPERATING PROFIT PRIMARILY DUE TO

CURRENCY EFFECTS AND QUALITY OFFENSIVE

 

[CHART]

 



 

PROGRAM FOR STRENGTHENING OF

PROFITABILITY

 

Efficiency

 

Quality

 

Profitable Growth

 

 

 

 

 

      Implement comprehensive transformation and optimization program "CORE"

 

      Develop sustainable business model for smart

 

      Comprehensive quality offensive Mercedes-Benz

 

      Strengthen innovation leadership with S- Class successor

 

      Launch of M-Class successor

 

      Launch of B- and R- Class in Sports Tourer Segment

 

      China activities

 



 

Mercedes Car Group - Efficiency

 

 

 

[LOGO]

 

TRANSFORMATION AND OPTIMIZATION PROGRAM

ACROSS ENTIRE VALUE CHAIN

 

[GRAPHIC]

 

R&D

 

Sourcing

 

Production

 

Marketing/After-Sales

 

Administration

 

Funding Requirements

 

Fixed Cost / Net Asset Optimization

 

Manufacturing Cost / Labour Cost

 

Production Material / Variable Cost

 

Revenues / Margins

 

Overhead / Processes

 

Focus on:

 

                  Efficiency

                  Complexity reduction

                  Flexibility

                  Profitability

                  Management Culture

 



 

Mercedes Car Group - Quality

 

 

 

[LOGO]

 

[GRAPHIC]

 

QUALITY OFFENSIVE TO REACH BEST IN CLASS QUALITY

MID-TERM

 

Development

 

Production

 

Service

 

 

 

 

 

      Reduce complexity

 

      Increase maturity

 

      Increase use of digital tools

 

      Supplier support program

 

      Improve initial quality

 

      Milestones achieved

 

      Failure rate reduction

 

      W&G improvement faster than planned

 

      Conduct preventive product measures

 

      Ensure top service quality

 

“New” products

 

Products in the field

 



 

Mercedes Car Group - Efficiency

 

 

 

[LOGO]

 

[GRAPHIC]

 

DEVELOP SUSTAINABLE BUSINESS MODEL FOR SMART

 

Topics currently addressed

 

First decisions already taken

 

 

 

      Sales performance (Network density, market entry USA under evaluation)

 

      Improve sales performance (e.g. shop in shop, market and sales initiative)

 

 

 

      Cost structure

 

      Product and market strategy

 

 

 

      Productivity (Across all product lines and through entire value chain)

 

 

 



 

Mercedes Car Group - Profitable Growth

 

 

 

[LOGO]

 

[GRAPHIC]

 

NEW PRODUCTS IN 2004

 

      CLS defining new segment of 4-door coupe

 

      SLK wins 32 out of 33 international awards

 

 

 

      Overwhelming market acceptance

 

      Undisputed market leader in its segment

 



 

Mercedes Car Group - Profitable Growth

 

[GRAPHIC]

 

NEW PRODUCTS IN 2004

 

      A-Class market introduction in September 2004 great success

 

      Over 50,000 units of new A-Class delivered in 2004

 



 

Mercedes Car Group - Profitable Growth

 

[GRAPHIC]

 

NEW M-CLASS

 



 

Mercedes Car Group - Profitable Growth

 

NEW M- AND R- CLASS: MAJOR STEPS IN VOLUME

EXPANSION OF M-CLASS FAMILY

 

[CHART]

 

14



 

Mercedes Car Group - Profitable Growth

 

SPORTS TOURER: MERCEDES-BENZ AGAIN DEFINING

NEW SEGMENT IN PREMIUM MARKET

New concept combining the best of three worlds

 

[GRAPHIC]

 

 

Off road

On road

Space

 

 

Mid

Fall

 

 

 

2005

2005

 

 

B-Class

 

 

R-Class

 

Market introduction

 

15



 

Mercedes Car Group - Profitable Growth

 

S-CLASS AGAIN DEFINING THE STANDARD

 

[GRAPHIC]

 

Driving
Dynamics

Passive
Safety

Comfort

Active
Safety

Man Machine
Interface

 

 

 

 

 

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

 

S-Class No. 1 in luxury segment since 1965

 



 

Mercedes Car Group - Profitable Growth

 

[GRAPHIC]

 

PRODUCT OFFENSIVE MERCEDES CAR GROUP

 

 

2007

 

2006

      C-Class

 

      G-Class

      smart fortwo

 

      S-Coupe

     

2005

     

 

      M-Class

 

 

      R-Class

 

 

      B-Class

 

 

      S-Class

 

 

 



 

[GRAPHIC]

 

CHRYSLER GROUP

 

[LOGO]

[LOGO]

[LOGO]

 

 

 

No.1

No. 1

No. 3

luxury full

MPV

SUV

size cars

USA

USA

USA

 

 

 

18



 

Chrysler Group

 

TURNAROUND DESPITE DIFFICULT MARKET CONDITIONS

 

Sales (1)

 

Revenues

 

Operating Profit (2)

- in thousand units -

 

- in billions of EUR -

 

- in billions of EUR -

 

 

 

 

 

[CHART]

 

[CHART]

 

[CHART]

 

 

 

 

 

                  New products

 

 

 

 

                  Improved efficiency

 

 

 

 

                  Improved quality

 

 

 

 

 


(1)          Corresponds to Chrysler shipments

(2)          Including restructuring charges of EUR 0.5 bn in 2003

 



 

Chrysler Group

 

PRODUCT OFFENSIVE 2004 SUCCESSFULLY LAUNCHED

 

 

 

 

Dodge Ram SRT-10

Chrysler 300

Chrysler Crossfire Roadster

 

 

 

 

 

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

 

 

 

 

 

 

PT Cruiser Convertible

Jeep Wrangler XL

Jeep Grand Cherokee

 

 

 

 

 

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

 

 

 

 

Q1

Q2

Q3

Q4

 

 

 

 

Chrysler/Dodge Minivans

Dodge Magnum

 

Dodge Dakota

 



 

Chrysler Group

 

IN 2004, CHRYSLER ACHIEVED BOTH POSITIVE NET PRICING

AND AN INCREASE IN MARKET SHARE

 

 

[LOGO]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

‘03-’04 CY

 

 

 

 

 

 

 

 

 

Net Pricing

 

 

 

 

(Chrysler Group Estimates)

[GRAPHIC]

 

 

 

 

 

 

 

 

 

 

Retail Market Share

[GRAPHIC]

 

 

 

 

 



 

Chrysler Group

 

CHRYSLER 300 WINS ALL TOP AWARDS 2004

 

[LOGO]

 

[GRAPHIC]

 



 

Chrysler Group

 

OTHER NEW INTRODUCTIONS ALSO HIGHLY AWARDED

 

Jeep Grand Cherokee

Minivans with Stow‘N Go

 

 

[GRAPHIC]

[GRAPHIC]

 

 

[GRAPHIC]

[GRAPHIC]

 

 

Dodge Magnum

Dodge Ram SRT-10 & Power Wagon

 



 

Chrysler Group

 

CONTINUED EFFICIENCY AND QUALITY IMPROVEMENT FOR FURTHER GROWTH

 

Efficiency

 

Quality

 

Profitable Growth

 

 

 

 

 

 

      Continued strive for cost benchmark position

 

      Target benchmark quality

 

      Continued product offensive

 

      Productivity

      Material cost

      Capital expenditure

      Work force

 

      Concept quality (APEAL)

 

      International strategy, e.g.

 

      Initial quality (IQS)

 

      China strategy

 

      Service quality (CSI)

 

      Cooperation with CMC in Taiwan (MPV)

 

 

 

      Dodge Europe

      Optimize retail network

 

 

 

 

 



 

Chrysler Group - Profitable Growth

 

Chrysler Group - Efficiency

 

 

 

 

 

 

 

IMPROVEMENTS SINCE 2000

 

Productivity

Material Cost

(2000 – 2004 fcst)

(2000 - 2004)

 

 

[GRAPHIC]

[GRAPHIC]

 

 

+20%

>20%

Harbour Report: Best Industry Improvement in 2002, 2003

 

Net Savings:

-20%

 

 

 

Gross Savings:

-26%

 

 

 

 

 

 

Net Assets

Program Spending

(2000 - 2004)

(2000 - 2004)

 

 

[GRAPHIC]

[GRAPHIC]

 

 

-42%

-31%

 

2000:

19.2 bn US$

 

 

2004:

11.1 bn US$

Decrease by 13 bn US$

 



 

Chrysler Group - Quality

 

 

 

 

 

 

 

QUALITY: IMPROVEMENTS IN COST AND PERCEPTION

 

 

 

 

Warranty Expenses

Quality Indicators

 

 

($ per unit sold)

 

      D Power IQS:

 

 

[CHART]

(1998-2004)

+36%

 

 

 

 

 

Warranty expense per unit sold
significantly decreased since 2000 MY

      JD Power APEAL:

2 Category Winners in 2004

 

 

      JD Power CSI:

Rank 3

 

 

 

 

(6 in 2000)

 

 

 

      36% of CG products on Consumer Reports “Recommended List”

 



 

Chrysler Group - Efficiency

 

 

 

IMPROVED APPEARANCE AT POINT OF SALE

 

 

[GRAPHIC]

Dublin, CA

 

 

 

 

Woodstock, GA

[GRAPHIC]

 

 

 

 

 

 

 

Houston, TX

Foothill Ranch, CA

Targets:

 

 

 

[GRAPHIC]

[GRAPHIC]

 

 

 

      Improve franchise attractiveness

 

 

 

 

 

      Increase sales

 



 

Chrysler Group - Profitable Growth

 

“LX” FAMILY CONCEPT

 

 

 

 

Charger

[LOGO]

 

 

Magnum SRT-8

[GRAPHIC]

Dodge Derivatives

 

Dodge Magnum

[GRAPHIC]

 

 

[GRAPHIC]

[GRAPHIC]

 

[GRAPHIC]

[LOGO]

Chrysler 300 / “LX” Base Platform

 

[GRAPHIC]

300 SRT-8

Chrysler Derivatives

 

 

300 Touring

 

 

 



 

PRODUCT LAUNCHES 2005

 

Dodge Charger

Dodge RAM Mega Cab

 

 

[GRAPHIC]

[GRAPHIC]

 

 

Jeep Commander

Chrysler 300 SRT8

 

 

[GRAPHIC]

[GRAPHIC]

 

 

Dodge Viper Coupe

Dodge Magnum SRT8

 

 

[GRAPHIC]

[GRAPHIC]

 



 

Chrysler Group - Profitable Growth

 

CHRYSLER GROUP WITH YOUNGEST PORTFOLIO

 

Vehicles MY2005 average showroom age

 

In years

 

[CHART]

 

Sales Weighted Showroom

(Chrysler Group Estimates)

 



 

Chrysler Group - Profitable Growth

 

[GRAPHIC]

 

PRODUCT OFFENSIVE CHRYSLER GROUP TO BE CONTINUED

 

 

 

 

 

2007

 

2006

      Chrysler models

2005

      Chrysler models

      Jeep model

      Jeep Commander

      Jeep models

      Dodge models

      Dodge Charger

      Dodge models

 

      Dodge Viper Coupe

 

 

      Dodge RAM Mega Cab

 

 

      SRT8-models

 

 

 



 

[GRAPHIC]

 

COMMERCIAL VEHICLES DIVISION

 

[LOGO]

[LOGO]

[LOGO]

[LOGO]

[LOGO]

 

 

 

 

 

Trucks

Trucks

MFTBC

DC Buses

MB Vans

Europe, LA

NAFTA

(FUSO)

& Coaches

 

 

 

 

 

 

No. 1

No. 1

No. 3

No. 1

No. 1

Brand >6t

>6t

truck

>8t

premium

WEU

NAFTA

Japan

worldwide

worldwide

 

32



 

Commercial Vehicles Division

 

CONTINUED STRONG INCREASE IN OPERATING PROFIT

DESPITE DIFFICULT SITUATION AT MFTBC (FUSO)

 

Sales*)

 

Revenues*)

Operating Profit*)

 

- in thousand units -

 

- in billions of € -

- in billions of € -

 

 

 

 

 

 

 

 

[CHART]

 

[CHART]

[CHART]

 

 

 

 

 

 

 

 

 

      Sales record

 

 

 

 

      Efficiency programs

 

 

 

 

      New products

 

 

 

 

 

      Economies of scale

 

 

 

 

 


*)             Change of consolidation basis of MFTBC from 2003 to 2004

 



 

Commercial Vehicles Division

 

PRODUCTS HIGHLY AWARDED

 

[GRAPHIC]

[GRAPHIC]

 

 

Truck of the Year 2004.

Van of the Year 2005

 

 

Der Actros

Der Vito

 



 

Commercial Vehicles Division

 

NEW PRODUCTS IN 2004

 

Trucks

Trucks

MFTBC

DC Buses

Europe, LA

NAFTA

(FUSO)

& Coaches

 

 

 

 

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

 

 

 

 

Atego new

TBB School

Canter TD

Setra

 

bus C2

(NAFTA)

Comfort Class

 

 

 

 

[GRAPHIC]

 

 

 

 

 

 

 

Axor new

 

 

 

 



 

Commercial Vehicles Division

 

MEASURES TO SECURE SUSTAINABLE PROFITABILITY

 

Efficiency

 

Quality

 

Profitable Growth

 

 

 

 

 

 

 

      Ongoing efficiency programs in every Business Unit

 

      Scale effects through new integrated Truck organization

 

      Significant improvements realized with new products

 

      Continued establishment of DaimlerChrysler-quality standards at MFTBC (FUSO)

 

      Continued product offensive

 

      Further strengthen leading position in Western Europe and NAFTA

 

•     Strong Asia presence

 

 



 

Commercial Vehicles Division - Efficiency

 

TURNING SCALE INTO PROFIT:

LEVERAGE EUROPEAN PRODUCT CONCEPTS

 

Axor

 

Axor new

 

EUROPE

 

 

 

 

 

[GRAPHIC]

 

[GRAPHIC]

 

 

 

 

Atego

 

Atego new

 

 

 

 

 

 

 

[GRAPHIC]

 

[GRAPHIC]

 

 

 

 

 

HPN

 

 

Axor new

 

 

 

 

[GRAPHIC]

STOP

 

Regional Adaptations

 

[GRAPHIC]

 

 

 

 

FPN

 

 

Atego new

 

 

 

 

 

 

[GRAPHIC]

LATIN AMERICA

 

[GRAPHIC]

 



 

Commercial Vehicles Division - Quality

 

QUALITY AS KEY LEVER FOR OPERATIONAL EXCELLENCE
AND SUSTAINABLE PROFITABLE GROWTH

 

[GRAPHIC]

 

Actros I                Actros II

 

Issues / 100 vehicles after 12 months of operating

 

[CHART]

 

      Actros II already with same quality as Actros I at the end of life cycle

      Interdisciplinary quality team

      Pre-launch testing with key customers

 



 

Commercial Vehicles Division - Quality

 

[GRAPHIC]

 



 

Commercial Vehicles Division - Profitable Growth

 

COMMERCIAL VEHICLES WITH ONGOING PRODUCT
OFFENSIVE IN NEXT THREE YEARS

 

[GRAPHIC]

 

2005

      MB Atego (Turkey)

      MB Axor (Brazil/Turkey)

      New Fuso Canter (Europe)

      MB Citaro Low Entry

      MB Travego (Turkey)

 

2006

      MB Sprinter successor

      MB Vito/Viano (China)

      MB Interurban Bus

      Setra MultiClass

      Fuso Hybrid City Bus

      ...

 

2007

      Freightliner Century Class successor

      MB Conecto City Bus

      …

 



 

DAIMLERCHRYSLER SERVICES

 

Market
position

Regional
scope

DC sales
coverage

 

 

 

[GRAPHIC]

[GRAPHIC]

[GRAPHIC]

 

 

 

No. 3 in automotive captive finance worldwide

Operations in 39 countries

Average penetration rate: 35%

 

 



 

DaimlerChrysler Services

 

DESPITE TOLL COLLECT
OPERATING PROFIT AT LAST YEAR’S HIGH LEVEL

 

Contract Volume

Revenues

Operating Profit

- in billions of EUR -

- in billions of EUR -

- in billions of EUR -

 

 

 

[CHART]

[CHART]

[CHART]

 

 

 

 

 

      High margins

      Improved cost position

      Improved risk management

 

 



 

DaimlerChrysler Services

 

CUSTOMER FOCUS IN CORE BUSINESS AS BASIS FOR
PROFITABLE GROWTH

 

Efficiency

 

Quality

 

Profitable Growth

 

 

 

 

 

 

 

      Further focus on core business

 

      Improve cost position

 

      Improved risk management

 

      Closer cooperation with automotive divisions

 

      Product Innovations

 

      Higher Customer Value

 

      Increase automotive brand support

 

      Ensure brand support in non-triad markets

 

 



 

DaimlerChrysler Services - Profitable Growth

 

[GRAPHIC]

 

BUSINESS DEVELOPMENT TAILORED TO SPECIFIC MARKET
SITUATIONS

 

 

NAFTA

 

Europe

 

Emerging markets

 

 

 

 

 

 

 

 

 

      Large volume

 

      Multiple companies of varying size

 

      Specific business scope

 

Situation

      Economies of scale realized

      Automation implemented

 

      Variations in processes and automation

 

      Low level of automation

 

 

 

 

 

 

 

 

Approach

      External benchmark

      Next level of automation

 

      Realize economies of scale

      Best practice for processes and automation

 

      Expand supporting DC vehicle business

      Leverage best practices

      Automate

 

 

 

 

 

 

 

 

Focus

Sustain

 

Use scale effects

 

Expand

 

 



 

[GRAPHIC]

 

OTHER ACTIVITIES

 

[LOGO]

[LOGO]

[LOGO]

 

 

 

No. 1

No. 1

No. 1

in commercial aircraft

in civilian helicopter

in marine propulsion systems

 



 

Other activities

 

[GRAPHIC]

 

AIRBUS IN 2004 AGAIN AHEAD OF BOEING

 

[CHART]

 

 



 

DaimlerChrysler - Corporate Initiatives

 

[GRAPHIC]

 

SIGNIFICANT INCREASE OF AVERAGE NUMBER
OF PV DERIVATES PER ARCHITECTURE

 

[CHART]

 

[CHART]

 

 

 

No. of PV architectures

 

Average no. of PV derivatives per architecture

 



 

Daimler Chrysler - - Corporate Initiatives

 

[GRAPHIC]

 

ACTIVITIES IN CHINA ARE PROGRESSING

 

 



 

Daimler Chrysler - - Corporate Initiatives

 

COMPREHENSIVE PROPULSION STRATEGY

 

Optimization of Combustion Engines

 

Hybrid Vehicles

 

Fuel Cell Technology

 

 

 

 

 

 

 

[GRAPHIC]

 

[GRAPHIC]

 

[GRAPHIC]

 

 



 

Daimler Chrysler - - Corporate Initiatives

 

[GRAPHIC]

 

PRIORITIES FOR THE COMING YEARS

 

Operational Excellence

Profitable Growth

 

Successful launch of new products

 

Quality Improvements

 

Cost reduction and efficiency

 

Value Added increase

 



 

[GRAPHIC]

 

DAIMLERCHRYSLER

 

 

2004 RESULTS

ANNUAL PRESS CONFERENCE

 

 

Jürgen E. Schrempp

Chairman of the Board of Management

 

 

Stuttgart

February 10, 2005

 



3

 



 

 

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[LOGO]

 

DAIMLERCHRYSLER

 

 

2004 RESULTS
ANNUAL PRESS CONFERENCE

 

Bodo Uebber
Chief Financial Officer

 

Stuttgart
February 10, 2005

 



DaimlerChrysler Group

 

KEY FINANCIAL HIGHLIGHTS IN 2004

 

                  Earning power strengthened:

                  Operating profit of EUR 5.8 billion

                  Net income of EUR 2.5 billion

                  Earnings per share of EUR 2.43

 

                  Key financial metrics improved:

                  Net liquidity of the industrial business at EUR 2.2 billion

                  Positive free cash flow in the industrial business of EUR 1.8 billion

                  Stable dividend payment of EUR 1.50 per share

 

                  Credit rating’s outlook improved

 

2



REVENUES AND OPERATING PROFIT

– in billions of EUR –

 

Revenues

Revenues

 

- reported -

- comparable (1) -

Operating Profit

 

 

 

[CHART]

[CHART]

[CHART]

 


(1)                                  Adjusted for exchange rate effects and changes in the consolidated Group

(2)                                  Excluding the gain on sale of MTU Aero Engines (EUR 1,031 mn) and restructuring charges at Chrysler Group (FY 2003: EUR 469 mn, Q4/2003: EUR 427 mn)

 

3



OPERATING PERFORMANCE STRENGTHENED

– in billions of EUR –

 

[CHART]

 

4



Mercedes Car Group

 

OPERATING PROFIT SUBSTANTIALLY LOWER THAN IN 2003

– in millions of EUR –

 

[CHART]

 

-

              Less favorable model mix

              Depreciation of the US dollar

              Higher expenses for new models

              High costs for quality offensive

              Additional burdens at smart

 

5



Chrysler Group

 

STRONG IMPROVEMENT
DESPITE DIFFICULT MARKET CONDITIONS

– in millions of EUR –

 

[CHART]

 

+

              Market success of new products

              Improved model mix

              Lower average incentives

              Improved quality – lower warranty costs

              Further cost reduction

 

6



Commercial Vehicles

 

OPERATING PROFIT IMPROVED
DESPITE HIGH CHARGES AT FUSO

– in millions of EUR –

 

[CHART]

 

+

•              Higher unit sales in core markets

              Favorable model mix

              Cost and productivity improvements

              Improved quality – lower warranty costs

 

-

              EUR 475 million related to Fuso recall

 

7



Services

 

OPERATING PROFIT AT PRIOR YEAR’S LEVEL
DESPITE CHARGES FOR TOLL COLLECT

– in millions of EUR –

 

[CHART]

 

+

              Continued high margins

              Lower cost of risk

 

-

              High charges for Toll Collect

              debis AirFinance valuation adjustment

 

8



DaimlerChrysler Group

 

NET INCOME AND EARNINGS PER SHARE

 

Net Income

Earnings per Share

- in billions of EUR -

- in EUR -

 

 

[CHART]

[CHART]

 

9



KEY BALANCE SHEET FIGURES

 

- in billions of EUR -

 

Dec. 31
2003

 

Dec. 31
2004

 

 

 

 

 

 

 

Gross liquidity Group

 

14.3

 

11.7

 

Gross liquidity industrial business

 

12.5

 

10.2

 

 

 

 

 

 

 

Group equity (1)

 

33.0

 

32.0

 

Equity ratio Group (1)

 

18.5

%

17.5

%

Equity ratio industrial business (1)

 

26.1

%

25.3

%

 

 

 

 

 

 

Financial liabilities Group (2)

 

74.7

 

76.0

 

Financial liabilities industrial business (2)

 

10.7

 

8.0

 

 

 

 

 

 

 

Net debt Group

 

(60.4

)

(64.3

)

Net cash industrial business

 

1.8

 

2.2

 

 


(1)      Excluding dividend payment for 2003 and 2004

(2)      Adjusted for the effects of the mark-to-market valuation according to SFAS 133

 

10



EUR 12 BILLION EXPENDITURE FOR THE FUTURE

– in billions of EUR –

 

Capital Expenditure in
Property, Plant & Equipment

Research & Development
Expenditure

 

 

[CHART]

[CHART]

 

11



PENSION STATUS

 

 

 

Dec. 31
2003

 

December 31
2004

 

- in billions of EUR -

 

DC
Group

 

DC
Group(2)

 

German
Plans

 

US (1)
Plans

 

Other (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected benefit obligations (PBO)

 

(32.1

)

(34.4

)

(12.6

)

(20.6

)

(1.2

)

 

 

 

 

 

 

 

 

 

 

 

 

Plan assets

 

26.3

 

27.8

 

9.0

 

18.3

 

0.5

 

 

 

 

 

 

 

 

 

 

 

 

 

Underfunded position

 

(5.8

)

(6.6

)

(3.6

)

(2.3

)

(0.7

)

 

 

 

 

 

 

 

 

 

 

 

 

Pension accruals

 

5.0

 

5.6

 

2.9

 

2.0

 

0.7

 

 

 

 

 

 

 

 

 

 

 

 

 

Underfunded PBO position net of accruals

 

(0.8

)

(1.0

)

(0.7

)

(0.3

)

0.0

 

 


(1)          Including Canadian Plans

(2)          Including PBO of EUR (0.8) bn, plan assets of EUR 0.2 bn and pension accruals of EUR 0.6 bn resulting from the consolidation of Mitsubishi Fuso Truck & Bus Corporation

 

12



POSTRETIREMENT HEALTHCARE BENEFIT

 

 

 

Dec. 31
2003

 

Dec. 31
2004

 

- in billions of EUR -

 

DC
Group

 

DC
Group

 

 

 

 

 

 

 

Accumulated postretirement benefit obligation (APBO)

 

(14.9

)

(14.4

)

 

 

 

 

 

 

Plan assets

 

1.5

 

1.6

 

 

 

 

 

 

 

Over / (under) funded position

 

(13.4

)

(12.8

)

 

 

 

 

 

 

Accruals for the postretirement benefit obligation

 

8.2

 

8.0

 

 

 

 

 

 

 

Over / (under) funded APBO position net of accruals

 

(5.2

)

(4.8

)

 

13



RECONCILIATION TO FREE CASH FLOW
FISCAL YEAR 2004

– in millions of EUR –

 

[CHART]

 

14



RETURN ON NET ASSETS

– after tax at Group level –

 

[CHART]

 

15



RETURN ON NET ASSETS OF THE DIVISIONS

– before taxes –

 

Mercedes Car
Group

Chrysler Group

Commercial
Vehicles

Financial Services
(ROE)

 

 

 

 

[CHART]

[CHART]

[CHART]

[CHART]

 

16



FINANCIAL OUTLOOK 2005
AND UNDERLYING ASSUMPTIONS

 

                  Assumptions for the automotive markets:

                  Stable car markets in Western Europe, NAFTA and Japan

                  Stable truck market in Western Europe, further increase in the NAFTA region

                  Further growth in emerging markets

 

                  Higher unit sales for all automotive divisions of DaimlerChrysler

 

                  Group operating profit expected to be slightly higher than in 2004

 

17



DISCLAIMER

 

These figures are preliminary and have neither been approved yet by the Supervisory Board nor audited by the external auditor. Publication of Annual Report and Consolidated Financial Statement is scheduled for February 23, 2005. Publication of Form 20-F Report is scheduled for February 28, 2005. This presentation contains forward-looking statements that reflect management’s current views with respect to future events. The words „anticipate,“ „assume,“ „believe,“ „estimate,“ „expect,“ „intend,“ „may,“ „plan,“ „project“ and „should“ and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: an economic downturn in Europe or North America; changes in currency exchange rates, interest rates and in raw material prices; introduction of competing products; increased sales incentives; 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 Report” in DaimlerChrysler’s most recent Annual Report and 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. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.

 

18



 

 

 

Fact Sheet Fourth Quarter

& Fiscal Year 2004

 

- Unaudited Figures -

 

February 10, 2005

 



 

 

 

Contents

 

DaimlerChrysler Group

 

 

 

 

Stock Market Information

 

 

 

 

Earnings Situation

 

 

 

 

Sales Information

 

 

 

 

Mercedes Car Group

 

 

 

 

Chrysler Group

 

 

 

 

Commercial Vehicles

 

 

These figures are preliminary and have neither been approved yet by the Supervisory Board nor audited by the external auditor. Publication of Annual Report and Consolidated Financial Statement is scheduled for February 23, 2005. Publication of Form 20-F Report is scheduled for February 28, 2005. This presentation contains forward-looking statements that reflect management’s current views with respect to future events. The words „anticipate,“ „assume,“ „believe,“ „estimate,“ „expect,“ „intend,“ „may,“ „plan,“ „project“ and „should“ and similar expressions identify forward-looking statements. Such statements are subject to risks and uncertainties, including, but not limited to: an economic downturn in Europe or North America; changes in currency exchange rates, interest rates and in raw material prices; introduction of competing products; increased sales incentives; 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 Report in DaimlerChrysler’s most recent Annual Report and 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. We do not intend or assume any obligation to update any forward-looking statement, which speaks only as of the date on which it is made.

 

2



 

Stock Market Information

 

Earnings per Share (basic):

 

4th Quarter 2004:

 

EUR

0.52

 

Fiscal Year 2004:

 

EUR

2.43

 

 

 

Share Price(1):

 

Share Price Frankfurt:

 

EUR

35.26

 

Share Price New York:

 

US$

48.05

 

 

Number of Shares:

 

Average Number of Outstanding Shares 2004:

 

1,012.8

 million

Shares Outstanding (December 31, 2004):

 

1,012.8

 million

 

Market Capitalization(1):

 

Frankfurt:

 

 

EUR

35.71

 billion

New York:

 

 

US$

48.67

 billion

 


(1) As of last trading day in FY 2004 (Frankfurt & New York: December 31, 2004).

 

3



 

Key Figures and Ratios

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in millions of EUR)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in %

 

2004

 

2003

 

Change
in %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

32,351

 

33,252

 

37,072

 

33,860

 

34,891

 

34,114

 

37,745

 

35,211

 

+7

%

142,059

 

136,437

 

+4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT (1)  (2)

 

1,314

 

1,073

 

1,864

 

223

 

693

 

877

 

741

 

1,215

 

-39

%

4,612

 

3,388

 

+36

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

2,663

 

2,837

 

2,794

 

2,906

 

2,815

 

2,839

 

3,033

 

3,138

 

-3

%

11,305

 

11,720

 

-4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA (1)  (2)

 

3,977

 

3,910

 

4,658

 

3,129

 

3,508

 

3,716

 

3,774

 

4,353

 

-13

%

15,917

 

15,108

 

+5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Profit (Loss) (2)

 

1,546

 

1,403

 

2,091

 

641

 

1,332

 

1,246

 

785

 

2,396

 

-67

%

5,754

 

5,686

 

+1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) (2)

 

412

 

588

 

577

 

109

 

951

 

(1,653

)

526

 

1,404

 

-63

%

2,466

 

448

 

+450

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Expenditure
(Property, plant & equipment)

 

1,368

 

1,630

 

1,628

 

1,484

 

1,770

 

1,593

 

1,620

 

1,907

 

-15

%

6,386

 

6,614

 

-3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective Tax Rate (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33.3

%

164.3

%

-0.8

pts

 


(1)   EBIT = Income before financial income and income taxes; EBITDA = Income before financial income and income taxes plus depreciation.

(2)   Figures for Q1/2004 and Q2/2004 have been adjusted retroactively for effects resulting from the first time application of the Medicare Act in the US.

 

4



 

Revenues by Divisions

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in millions of EUR)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in %

 

2004

 

2003

 

Change
in %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mercedes Car Group

 

11,674

 

12,424

 

12,977

 

13,221

 

12,121

 

12,742

 

12,858

 

13,059

 

-2

%

49,630

 

51,446

 

-4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chrysler Group

 

12,060

 

12,679

 

13,206

 

11,834

 

11,520

 

12,496

 

12,712

 

12,312

 

+3

%

49,498

 

49,321

 

+0

%

- in USD - (1)

 

15,072

 

13,611

 

15,908

 

13,438

 

14,074

 

14,055

 

16,497

 

14,633

 

+13

%

61,551

 

55,737

 

+10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Vehicles (2)

 

6,612

 

5,774

 

8,963

 

6,580

 

9,197

 

6,756

 

9,992

 

7,696

 

+30

%

34,764

 

26,806

 

+30

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services

 

3,372

 

3,608

 

3,463

 

3,508

 

3,444

 

3,470

 

3,660

 

3,451

 

+6

%

13,939

 

14,037

 

-1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Activities (3)

 

387

 

867

 

471

 

947

 

525

 

996

 

817

 

1,274

 

-36

%

2,200

 

4,084

 

-46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eliminations/Discontinued

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operations (3)

 

(1,754

)

(2,100

)

(2,008

)

(2,230

)

(1,916

)

(2,346

)

(2,294

)

(2,581

)

+11

%

(7,972

)

(9,257

)

+14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DaimlerChrysler Group (2)

 

32,351

 

33,252

 

37,072

 

33,860

 

34,891

 

34,114

 

37,745

 

35,211

 

+7

%

142,059

 

136,437

 

+4

%

 


(1)   Revenues as originally generated by Chrysler Group in US dollars. Figures are therefore not comparable to those shown in the financial statements.

(2)   Since April 1, 2004 Mitsubishi Fuso Truck and Bus Corporation (MFTBC) has been included with a time lag of one month.

(3)   On December 31, 2003, DaimlerChrysler completed the sale of its 100% ownership interest in MTU Aero Engines GmbH.

 

5



 

Operating Profit by Divisions

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in millions of EUR)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in %

 

2004

 

2003

 

Change
in %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mercedes Car Group

 

639

 

688

 

703

 

861

 

304

 

793

 

20

 

784

 

-97

%

1,666

 

3,126

 

-47

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chrysler Group (1)

 

303

 

152

 

521

 

(948

)

217

 

147

 

386

 

143

 

+170

%

1,427

 

(506

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Vehicles (2)

 

268

 

47

 

468

 

222

 

159

 

198

 

437

 

344

 

+27

%

1,332

 

811

 

+64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services

 

221

 

419

 

472

 

334

 

412

 

284

 

145

 

203

 

-29

%

1,250

 

1,240

 

+1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Activities (3)

 

134

 

72

 

85

 

217

 

258

 

(104

)

(21

)

1,144

 

 

456

 

1,329

 

-66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eliminations

 

(19

)

25

 

(158

)

(45

)

(18

)

(72

)

(182

)

(222

)

+18

%

(377

)

(314

)

-20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DaimlerChrysler Group (1)(2)

 

1,546

 

1,403

 

2,091

 

641

 

1,332

 

1,246

 

785

 

2,396

 

-67

%

5,754

 

5,686

 

+1

%

 


(1)   Figures for Q1/2004 and Q2/2004 have been adjusted retroactively for effects resulting from the first time application of the Medicare Act in the US.

(2)   Since April 1, 2004 Mitsubishi Fuso Truck and Bus Corporation (MFTBC) has been included with a time lag of one month.

(3)   On December 31, 2003, DaimlerChrysler completed the sale of its 100% ownership interest in MTU Aero Engines GmbH. As of June 30, 2004, Mitsubishi Motors Corporation has been included as a financial investment measured at fair value.

 

6



 

Earnings per Share

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in EUR)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in %

 

2004

 

2003

 

Change
in %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EPS (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

basic

 

0.41

 

0.58

 

0.57

 

0.11

 

0.94

 

(1.63

)

0.52

 

1.39

 

-63

%

2.43

 

0.44

 

+452

%

diluted

 

0.41

 

0.58

 

0.57

 

0.11

 

0.94

 

(1.63

)

0.52

 

1.39

 

-63

%

2.43

 

0.44

 

+452

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average number of shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in million)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

basic number of shares

 

1,012.7

 

1,012.7

 

1,012.7

 

1,012.6

 

1,012.8

 

1,012.8

 

1,012.8

 

1,012.7

 

+0

%

1,012.8

 

1,012.7

 

+0

%

diluted number of shares

 

1,013.8

 

1,013.8

 

1,015.4

 

1,013.6

 

1,015.0

 

1,012.8

 

1,012.8

 

1,012.7

 

+0

%

1,014.5

 

1,012.7

 

+0

%

 


(1)   Figures for Q1/2004 and Q2/2004 have been adjusted retroactively for effects resulting from the first time application of the Medicare Act in the US.

 

7



 

Mercedes Car Group

Wholesales

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in thousand units)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in %

 

2004

 

2003

 

Change
in %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mercedes Car Group

 

266

 

291

 

319

 

318

 

293

 

305

 

348

 

302

 

+15

%

1,227

 

1,217

 

+1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Western Europe

 

173

 

192

 

224

 

219

 

190

 

208

 

233

 

193

 

+21

%

821

 

813

 

+1

%

of which Germany

 

81

 

86

 

104

 

105

 

88

 

104

 

114

 

95

 

+19

%

387

 

390

 

-1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAFTA

 

55

 

58

 

58

 

60

 

61

 

54

 

67

 

65

 

+3

%

240

 

235

 

+2

%

of which USA

 

52

 

53

 

53

 

55

 

56

 

50

 

62

 

60

 

+3

%

223

 

218

 

+2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan

 

11

 

11

 

8

 

10

 

10

 

11

 

12

 

13

 

-12

%

41

 

46

 

-10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rest of World

 

27

 

31

 

29

 

29

 

32

 

32

 

36

 

31

 

+17

%

125

 

123

 

+2

%

 

8



 

Mercedes Car Group

Retail Sales*

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in thousand units)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in %

 

2004

 

2003

 

Change
in %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mercedes Car Group

 

274

 

286

 

311

 

319

 

288

 

306

 

328

 

298

 

+10

%

1,200

 

1,210

 

-1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Western Europe

 

180

 

188

 

214

 

219

 

189

 

207

 

216

 

194

 

+11

%

799

 

808

 

-1

%

of which Germany

 

81

 

86

 

104

 

105

 

88

 

104

 

114

 

95

 

+19

%

387

 

390

 

-1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAFTA

 

53

 

55

 

59

 

59

 

59

 

58

 

69

 

64

 

+8

%

239

 

236

 

+1

%

of which USA

 

49

 

52

 

54

 

54

 

54

 

54

 

64

 

59

 

+8

%

222

 

219

 

+1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan

 

12

 

12

 

9

 

10

 

10

 

12

 

11

 

11

 

-5

%

42

 

45

 

-7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rest of World

 

29

 

31

 

29

 

31

 

30

 

30

 

32

 

30

 

+9

%

120

 

121

 

-1

%

 


* Wholesales for smart in 2003.

 

9



 

Mercedes Car Group

Market Shares

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in %)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in % pts

 

2004

 

2003

 

Change
in % pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Western Europe

 

4.3

 

4.6

 

4.5

 

5.1

 

4.5

 

5.1

 

5.1

 

4.6

 

0.5

 

4.6

 

4.9

 

-0.3

 

of which Germany

 

10.9

 

11.1

 

10.6

 

11.3

 

10.1

 

11.8

 

10.9

 

10.0

 

0.9

 

10.6

 

11.1

 

-0.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USA

 

1.6

 

1.7

 

1.5

 

1.5

 

1.6

 

1.5

 

2.0

 

1.8

 

0.2

 

1.7

 

1.6

 

0.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Japan

 

0.8

 

0.8

 

0.8

 

0.9

 

0.8

 

0.9

 

0.8

 

1.0

 

-0.2

 

0.8

 

0.9

 

-0.1

 

 

10



 

Chrysler Group

Shipments

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in thousand units)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in %

 

2004

 

2003

 

Change
in %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chrysler Group

 

685

 

647

 

781

 

722

 

595

 

629

 

719

 

640

 

+12

%

2,780

 

2,638

 

+5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of which

Passenger Cars

 

128

 

145

 

190

 

184

 

153

 

128

 

153

 

111

 

+38

%

624

 

568

 

+10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minivans

 

115

 

127

 

159

 

134

 

113

 

104

 

113

 

112

 

+1

%

500

 

477

 

+5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sport Tourers

 

56

 

39

 

75

 

66

 

77

 

62

 

73

 

50

 

+44

%

280

 

218

 

+28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUV’s

 

214

 

174

 

175

 

174

 

121

 

165

 

198

 

197

 

+1

%

708

 

710

 

-0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Light Trucks

 

172

 

162

 

184

 

164

 

131

 

169

 

182

 

170

 

+7

%

668

 

665

 

+0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAFTA

 

639

 

611

 

736

 

676

 

558

 

586

 

676

 

585

 

+16

%

2,610

 

2,458

 

+6

%

of which

USA

 

583

 

531

 

638

 

582

 

484

 

517

 

582

 

498

 

+17

%

2,287

 

2,129

 

+7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rest of World

 

45

 

36

 

46

 

46

 

37

 

43

 

42

 

55

 

-23

%

170

 

180

 

-6

%

 

11



 

Chrysler Group

Retail Sales*

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in thousand units)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in %

 

2004

 

2003

 

Change
in %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chrysler Group

 

633

 

616

 

760

 

734

 

653

 

630

 

656

 

627

 

+5

%

2,702

 

2,607

 

+4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of which

Passenger Cars

 

122

 

150

 

178

 

179

 

153

 

117

 

141

 

114

 

+24

%

594

 

560

 

+6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Minivans

 

123

 

130

 

159

 

150

 

111

 

116

 

127

 

111

 

+14

%

519

 

508

 

+2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sport Tourers

 

64

 

40

 

61

 

54

 

63

 

54

 

83

 

57

 

+45

%

272

 

206

 

+32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUV’s

 

175

 

147

 

189

 

171

 

164

 

177

 

166

 

185

 

-10

%

694

 

679

 

+2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Light Trucks

 

150

 

148

 

173

 

181

 

162

 

167

 

140

 

160

 

-13

%

624

 

655

 

-5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAFTA

 

593

 

577

 

715

 

694

 

613

 

589

 

617

 

581

 

+6

%

2,538

 

2,440

 

+4

%

of which

USA

 

519

 

502

 

620

 

603

 

538

 

516

 

535

 

506

 

+6

%

2,211

 

2,127

 

+4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rest of World

 

40

 

39

 

44

 

41

 

40

 

41

 

39

 

46

 

-14

%

165

 

167

 

-1

%

 


* Includes Sprinter vans sold under the Freightliner brand.

 

12



 

Chrysler Group

Market Shares

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in %)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in % pts

 

2004

 

2003

 

Change
in % pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chrysler Group USA & Canada

 

13.0

 

13.2

 

13.5

 

13.3

 

11.9

 

11.4

 

12.8

 

12.5

 

0.3

 

12.8

 

12.6

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Passenger Cars USA

 

6.0

 

6.9

 

7.4

 

7.3

 

6.0

 

4.8

 

6.4

 

5.3

 

1.1

 

6.5

 

6.1

 

0.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trucks USA

 

18.3

 

18.6

 

18.1

 

18.2

 

16.0

 

16.5

 

17.1

 

17.4

 

-0.3

 

17.3

 

17.6

 

-0.3

 

 

13



 

Chrysler Group

Division specific data

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

 

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change

 

2004

 

2003

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fleet % of Total USA

 

27.2

%

27.4

%

27.5

%

29.8

%

15.4

%

16.2

%

25.1

%

20.5

%

4.6

 

23.9

%

23.7

%

0.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Lease % of Total Retail

 

14.5

%

15.6

%

15.5

%

10.7

%

16.2

%

11.7

%

18.7

%

15.9

%

2.8

 

16.2

%

13.4

%

2.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Field Stock
(1,000 units)

 

585

 

536

 

606

 

519

 

563

 

528

 

601

 

521

 

80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Days Supply
(days)

 

77

 

69

 

72

 

63

 

83

 

86

 

81

 

74

 

7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Marketing Cost
as% of Revenues

 

20.4

%

20.0

%

20.4

%

28.7

%

16.6

%

20.3

%

20.7

%

19.1

%

1.6

pts.

19.7

%

22.2

%

-2.5

pts

 

14



 

Commercial Vehicles

Wholesales*

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in thousand units)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in %

 

2004

 

2003

 

Change
in %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Vehicles

 

126

 

107

 

185

 

126

 

193

 

123

 

209

 

145

 

+44

%

712

 

501

 

+42

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Western Europe

 

56

 

53

 

75

 

64

 

63

 

59

 

80

 

74

 

+8

%

274

 

250

 

+10

%

of which Germany

 

20

 

18

 

29

 

26

 

26

 

26

 

36

 

31

 

+15

%

111

 

102

 

+9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAFTA

 

39

 

29

 

44

 

34

 

45

 

34

 

49

 

37

 

+31

%

177

 

134

 

+32

%

of which USA

 

34

 

24

 

38

 

29

 

38

 

29

 

41

 

32

 

+28

%

151

 

115

 

+32

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

12

 

9

 

14

 

9

 

17

 

11

 

15

 

11

 

+28

%

58

 

40

 

+43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia/Australia

 

6

 

6

 

31

 

7

 

47

 

8

 

45

 

9

 

 

130

 

29

 

 

of which Japan

 

1

 

0

 

10

 

0

 

17

 

0

 

15

 

1

 

 

43

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rest of World

 

13

 

10

 

20

 

12

 

20

 

12

 

20

 

14

 

+49

%

73

 

48

 

+53

%

 


* Since April 1, 2004 Mitsubishi Fuso Truck and Bus Corporation (MFTBC) included with a time lag of one month, therefore the 2nd quarter 2004 only includes two months.

 

15



 

Commercial Vehicles

Retail Sales*

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in thousand units)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in %

 

2004

 

2003

 

Change
in %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Vehicles

 

124

 

103

 

183

 

125

 

192

 

125

 

213

 

140

 

+52

%

711

 

493

 

+44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Western Europe

 

56

 

52

 

75

 

65

 

64

 

62

 

85

 

70

 

+21

%

280

 

250

 

+12

%

of which Germany

 

20

 

18

 

29

 

26

 

26

 

26

 

36

 

31

 

+15

%

111

 

102

 

+9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NAFTA

 

37

 

25

 

43

 

32

 

43

 

34

 

48

 

36

 

+33

%

172

 

127

 

+35

%

of which USA

 

32

 

21

 

37

 

28

 

37

 

29

 

41

 

31

 

+31

%

146

 

108

 

+35

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latin America

 

12

 

9

 

14

 

9

 

17

 

11

 

15

 

11

 

+28

%

58

 

40

 

+43

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asia/Australia

 

6

 

6

 

31

 

7

 

48

 

7

 

45

 

9

 

 

130

 

29

 

 

of which Japan

 

1

 

0

 

10

 

0

 

17

 

0

 

15

 

0

 

 

42

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rest of World

 

13

 

10

 

20

 

12

 

19

 

12

 

20

 

13

 

+51

%

71

 

47

 

+52

%

 


* Since April 1, 2004 Mitsubishi Fuso Truck and Bus Corporation (MFTBC) included with a time lag of one month, therefore the 2nd quarter 2004 only includes two months.

 

16



 

Commercial Vehicles

Market Shares

 

 

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

4th Quarter

 

Fiscal Year

 

(in %)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

Change
in % pts

 

2004

 

2003

 

Change
in % pts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trucks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trucks Europe / Latin America  (Mercedes-Benz)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Western Europe

 

19.7

 

19.0

 

22.1

 

19.7

 

23.0

 

21.7

 

21.4

 

22.2

 

-0.8

 

21.7

 

20.9

 

0.8

 

Germany

 

37.8

 

39.4

 

42.7

 

38.6

 

43.4

 

44.3

 

41.4

 

43.4

 

-2.0

 

41.7

 

41.7

 

0.0

 

Brazil

 

31.4

 

35.2

 

30.6

 

32.1

 

30.7

 

33.9

 

30.5

 

33.6

 

-3.1

 

30.7

 

33.6

 

-2.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trucks NAFTA (Freightliner/ Sterling/Western Star)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

USA Class 8

 

40.5

 

41.7

 

36.7

 

41.5

 

33.7

 

40.1

 

36.5

 

39.3

 

-2.8

 

36.3

 

40.3

 

-4.0

 

USA Class 5-7

 

25.6

 

28.1

 

27.3

 

25.5

 

26.4

 

28.2

 

25.1

 

25.9

 

-0.8

 

26.1

 

26.7

 

-0.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vans (Mercedes-Benz)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Western Europe

 

17.3

 

17.9

 

17.1

 

16.8

 

18.0

 

17.5

 

17.5

 

16.7

 

0.8

 

17.5

 

17.1

 

0.4

 

Germany

 

27.3

 

29.6

 

27.0

 

26.9

 

29.3

 

27.5

 

30.6

 

27.7

 

2.9

 

28.8

 

27.7

 

1.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buses & Coaches
(Mercedes-Benz/Setra)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Western Europe

 

27.1

 

25.3

 

26.7

 

26.2

 

25.9

 

29.4

 

31.7

 

31.1

 

0.6

 

28.2

 

28.4

 

-0.2

 

Germany

 

57.8

 

56.6

 

48.9

 

55.4

 

66.6

 

58.2

 

60.1

 

63.6

 

-3.5

 

58.0

 

59.6

 

-1.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mitsubishi Fuso Truck & Bus

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trucks & Buses Japan

 

30.4

 

30.1

 

31.4

 

29.8

 

25.9

 

28.8

 

21.7

 

28.2

 

-6.5

 

26.9

 

28.9

 

-2.0

 

 

17



 

Key Figures

 

DAIMLERCHRYSLER

 

- unaudited -

 

DaimlerChrysler Group

 

(amounts in millions)

 

2004
US $(1)

 

2004

 

2003

 

2002

 

04/03
change in %

 

Revenues

 

192,319

 

142,059

 

136,437

 

147,368

 

+4

(2)

European Union

 

64,162

 

47,394

 

48,496

 

46,546

 

-2

 

of which: Germany

 

30,210

 

22,315

 

24,182

 

23,121

 

-8

 

North America

 

99,188

 

73,266

 

73,477

 

87,831

 

-0

 

of which: USA

 

86,957

 

64,232

 

64,757

 

77,686

 

-1

 

Other markets

 

28,970

 

21,399

 

16,397

 

15,206

 

+31

 

Discontinued operations

 

 

 

(1,933

)

(2,215

)

 

Employees (at year-end)

 

 

 

384,723

 

362,063

 

365,571

 

+6

 

Investments in property, plant and equipment

 

8,645

 

6,386

 

6,614

 

7,145

 

-3

 

Research and development expenditure

 

7,660

 

5,658

 

5,571

 

5,942

 

+2

 

Cash provided by operating activities

 

14,973

 

11,060

 

13,826

 

15,909

 

-20

 

Operating profit (loss)

 

7,790

 

5,754

 

5,686

 

6,854

 

+1

 

Net income (loss)

 

3,338

 

2,466

 

448

 

4,718

 

+450

 

per share (in US $/€)

 

3.29

 

2.43

 

0.44

 

4.68

 

+452

 

Total dividend

 

2,057

 

1,519

 

1,519

 

1,519

 

±0

 

Dividend per share (in €)

 

 

 

1.50

 

1.50

 

1.50

 

±0

 

 


(1) Rate of exchange: € 1 = US $ 1.3538 (based on the noon buying rate on Dec. 31, 2004).

(2) A 7% increase after adjusting for the effects of currency translation and changes in the consolidated Group.

 



 

Divisions

 

 

 

- unaudited -

 

Mercedes Car Group

 

(amounts in millions)

 

2004
US $(1)

 

2004

 

2003

 

04/03
change in %

 

Operating profit

 

2,255

 

1,666

 

3,126

 

-47

 

Revenues

 

67,189

 

49,630

 

51,446

 

-4

 

Investments in property, plant and equipment

 

3,172

 

2,343

 

2,939

 

-20

 

Research and development expenditure

 

3,566

 

2,634

 

2,687

 

-2

 

Unit sales

 

 

 

1,226,773

 

1,216,938

 

+1

 

Employees (Dec. 31)

 

 

 

105,857

 

104,151

 

+2

 

 

 

 

 

 

 

 

 

 

 

 

Chrysler Group

 

(amounts in millions)

 

2004
US $(1)

 

2004

 

2003

 

04/03
change in %

 

Operating profit (loss)

 

1,932

 

1,427

 

(506

)

 

Revenues

 

67,010

 

49,498

 

49,321

 

+0

 

Investments in property, plant and equipment

 

3,584

 

2,647

 

2,487

 

+6

 

Research and development expenditure

 

2,125

 

1,570

 

1,689

 

-7

 

Unit sales

 

 

 

2,779,895

 

2,637,867

 

+5

 

Employees (Dec. 31)

 

 

 

84,375

 

93,062

 

-9

 

 

Commercial Vehicles

 

(amounts in millions)

 

2004
US $(1)

 

2004

 

2003

 

04/03
change in %

 

Operating profit

 

1,803

 

1,332

 

811

 

+64

 

Revenues

 

47,064

 

34,764

 

26,806

 

+30

 

Investments in property, plant and equipment

 

1,603

 

1,184

 

958

 

+24

 

Research and development expenditure

 

1,660

 

1,226

 

946

 

+30

 

Unit sales

 

 

 

712,166

 

500,981

 

+42

 

Employees (Dec. 31)

 

 

 

114,602

 

88,014

 

+30

 

 

Services

 

(amounts in millions)

 

2004
US $(1)

 

2004

 

2003

 

04/03
change in %

 

Operating profit

 

1,692

 

1,250

 

1,240

 

+1

 

Revenues

 

18,871

 

13,939

 

14,037

 

-1

 

Contract volume

 

138,628

 

102,399

 

98,199

 

+4

 

Investment in property, plant and equipment

 

123

 

91

 

76

 

+20

 

Employees (Dec. 31)

 

 

 

11,224

 

11,035

 

+2

 

 

Other Activities

 

(amounts in millions)

 

2004
US $(1)

 

2004

 

2003

 

04/03
change in %

 

Operating profit(2)

 

617

 

456

 

1,329

 

-66

 

Revenues(2)

 

2,978

 

2,200

 

4,084

 

-46

 

Investment in property, plant and equipment(2)

 

181

 

134

 

169

 

-21

 

Research and development expenditure(2)

 

309

 

228

 

420

 

-46

 

Employees (Dec. 31)

 

 

 

20,636

 

20,192

 

+2

 

 


(1) Rate of exchange: € 1 = US $1.3538 (based on the noon buying rate on Dec. 31, 2004).

(2) In 2003 figures of discontinued operations (MTU Aero Engines) are included.

 



 

4th Quarter Key Figures

 

 

- unaudited -

 

DaimlerChrysler Group

 

(amounts in millions)

 

Q IV/2004
US $
(1)

 

Q IV/2004

 

Q IV/2003

 

04/03
change in %

 

Revenues

 

51,099

 

37,745

 

35,211

 

+7

 

Operating profit

 

1,063

 

785

 

2,396

 

-67

 

Net income

 

712

 

526

 

1,404

 

-63

 

per share (in US $/€)

 

0.70

 

0.52

 

1.39

 

-63

 

 

Mercedes Car Group

 

(amounts in millions)

 

Q IV/2004
US $(1)

 

Q IV/2004

 

Q IV/2003

 

04/03
change in %

 

Unit sales

 

 

 

348,260

 

302,365

 

+15

 

Revenues

 

17,407

 

12,858

 

13,059

 

-2

 

Operating profit

 

27

 

20

 

784

 

-97

 

 

Chrysler Group

 

(amounts in millions)

 

Q IV/2004
US $(1)

 

Q IV/2004

 

Q IV/2003

 

04/03
change in %

 

Unit sales

 

 

 

718,772

 

639,621

 

+12

 

Revenues

 

17,210

 

12,712

 

12,312

 

+3

 

Operating profit

 

523

 

386

 

143

 

+170

 

 

Commercial Vehicles

 

(amounts in millions)

 

Q IV/2004
US $(1)

 

Q IV/2004

 

Q IV/2003

 

04/03
change in %

 

Unit sales

 

 

 

208,672

 

145,007

 

+44

 

Revenues

 

13,527

 

9,992

 

7,696

 

+30

 

Operating profit

 

592

 

437

 

344

 

+27

 

 

Services

 

(amounts in millions)

 

Q IV/2004
US $(1)

 

Q IV/2004

 

Q IV/2003

 

04/03
change in %

 

Revenues

 

4,955

 

3,660

 

3,451

 

+6

 

Operating profit

 

196

 

145

 

203

 

-29

 

 

Other Activities

 

(amounts in millions)

 

Q IV/2004
US $(1)

 

Q IV/2004

 

Q IV/2003

 

04/03
change in %

 

Revenues(2)

 

1,106

 

817

 

1,274

 

-36

 

Operating profit (loss)(2)

 

(28

)

(21

)

1,144

 

 

 


(1) Rate of exchange: € 1 = US $1.3538 (based on the noon buying rate on Dec. 31, 2004).

(2) In 2003 figures of discontinued operations (MTU Aero Engines) are included.

 



 

 

Consolidated Statement of Income (Loss) - Group

 

 

- unaudited -

 

 

 

year ended December 31,

 

(in millions, except EPS)

 

2004

 

2004

 

2003

 

2002

 

 

 

US $(1)

 

 

 

 

Revenues

 

192,319

 

142,059

 

136,437

 

147,368

 

Cost of sales

 

(155,100

)

(114,567

)

(109,926

)

(119,624

)

Gross profit

 

37,219

 

27,492

 

26,511

 

27,744

 

Selling, administrative and other expenses

 

(24,330

)

(17,972

)

(17,772

)

(18,166

)

Research and development

 

(7,660

)

(5,658

)

(5,571

)

(5,942

)

Other income

 

1,211

 

895

 

689

 

777

 

Turnaround plan expenses - Chrysler Group

 

(196

)

(145

)

(469

)

(694

)

Income (expense) before financial income

 

6,244

 

4,612

 

3,388

 

3,719

 

Impairment of investment in EADS

 

 

 

(1,960

)

 

Other financial income (expense, net)

 

(1,458

)

(1,077

)

(832

)

2,206

 

Financial income (expense), net

 

(1,458

)

(1,077

)

(2,792

)

2,206

 

Income (loss) before income taxes

 

4,786

 

3,535

 

596

 

5,925

 

Income tax benefit (expense)

 

(1,594

)

(1,177

)

(979

)

(1,115

)

Minority interests

 

146

 

108

 

(35

)

(15

)

Income (loss) from continuing operations

 

3,338

 

2,466

 

(418

)

4,795

 

Income from discontinued operations, net of taxes

 

 

 

14

 

82

 

Income on disposal of discontinued operations, net of taxes

 

 

 

882

 

 

Cumulative effect of changes in accounting principles

 

 

 

(30

)

(159

)

Net income (loss)

 

3,338

 

2,466

 

448

 

4,718

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

3.29

 

2.43

 

0.44

 

4.68

 

Diluted earnings per share

 

3.29

 

2.43

 

0.44

 

4.67

 

 


(1) Rate of exchange: € 1 = US $ 1.3538 (based on the noon buying rate on Dec. 31, 2004).

 



 

Consolidated Statements of Income (Loss) - Industrial Business and Financial Services

 

 

- unaudited -

 

 

 

Industrial Business

 

Financial Services

 

 

 

year ended December 31,

 

year ended December 31,

 

(in millions)

 

2004

 

2003

 

2002

 

2004

 

2003

 

2002

 

 

 

 

 

 

 

 

 

Revenues

 

128,133

 

122,397

 

131,668

 

13,926

 

14,040

 

15,700

 

Cost of sales

 

(103,771

)

(98,937

)

(106,443

)

(10,796

)

(10,989

)

(13,181

)

Gross profit

 

24,362

 

23,460

 

25,225

 

3,130

 

3,051

 

2,519

 

Selling, administrative and other expenses

 

(16,741

)

(16,374

)

(16,451

)

(1,231

)

(1,398

)

(1,715

)

Research and development

 

(5,658

)

(5,571

)

(5,942

)

 

 

 

Other income

 

833

 

637

 

709

 

62

 

52

 

68

 

Turnaround plan expenses - Chrysler Group

 

(145

)

(469

)

(694

)

 

 

 

Income (expense) before financial income

 

2,651

 

1,683

 

2,847

 

1,961

 

1,705

 

872

 

Impairment of investment in EADS

 

 

(1,960

)

 

 

 

 

Other financial income (expense), net

 

(1,043

)

(775

)

2,325

 

(34

)

(57

)

(119

)

Financial income (expense), net

 

(1,043

)

(2,735

)

2,325

 

(34

)

(57

)

(119

)

Income (loss) before income taxes

 

1,608

 

(1,052

)

5,172

 

1,927

 

1,648

 

753

 

Income tax benefit (expense)

 

(442

)

(352

)

(738

)

(735

)

(627

)

(377

)

Minority interests

 

113

 

(30

)

(12

)

(5

)

(5

)

(3

)

Income (loss) from continuing operations

 

1,279

 

(1,434

)

4,422

 

1,187

 

1,016

 

373

 

Income from discontinued operations, net of taxes

 

 

14

 

82

 

 

 

 

Income on disposal of discontinued operations, net of taxes

 

 

882

 

 

 

 

 

Cumulative effect of changes in accounting principles

 

 

(30

)

(124

)

 

 

(35

)

Net income (loss)

 

1,279

 

(568

)

4,380

 

1,187

 

1,016

 

338

 

 



 

Reconciliation to Income before Financial Income and Financial Income, net

 

 

- unaudited -

 

Reconciliation of operating profit to income (loss)

before financial income

 

(in millions)

 

2004

 

2004

 

2003

 

 

 

US $(1)

 

 

 

Operating profit

 

7,790

 

5,754

 

5,686

 

Pension and postretirement benefit (expenses) income, other than current and prior service costs and settlement/curtailment losses

 

(1,144

)

(845

)

(870

)

Operating (profit) loss from affiliated and associated companies and financial (income) loss from related operating companies

 

118

 

87

 

(5

)

Operating profit from discontinued operations

 

 

 

(84

)

Pre-tax gains from the sale of operating businesses and discontinued operations

 

 

 

(1,031

)

Miscellaneous items

 

(520

)

(384

)

(308

)

Income (loss) before financial income

 

6,244

 

4,612

 

3,388

 

 


(1) Rate of exchange: € 1 = US $ 1.3538 (based on the noon buying rate on Dec. 31, 2004).

 

- unaudited -

 

Financial income (expense), net

 

 

 

year ended December 31,

 

(in millions)

 

2004

 

2003

 

2002

 

 

 

 

 

 

Impairment of investment in EADS

 

 

(1,960

)

 

Other income from investments

 

(606

)

(477

)

2,638

 

Income (loss) from investments, net

 

(606

)

(2,437

)

2,638

 

Interest expense, net

 

(300

)

(390

)

(320

)

Other financial income (loss), net

 

(171

)

35

 

(112

)

Financial income (expense), net

 

(1,077

)

(2,792

)

2,206

 

 



 

Consolidated Balance Sheet - Group

 

 

- unaudited -

 

 

 

at December 31,

 

(in millions)

 

2004

 

2004

 

2003

 

 

 

US $(1)

 

 

 

Assets

 

 

 

 

 

 

 

Goodwill

 

2,712

 

2,003

 

1,816

 

Other intangible assets

 

3,616

 

2,671

 

2,819

 

Property, plant and equipment, net

 

46,031

 

34,001

 

32,917

 

Investments and long-term financial assets

 

9,535

 

7,043

 

8,748

 

Equipment on operating leases, net

 

36,160

 

26,711

 

24,385

 

Fixed Assets

 

98,054

 

72,429

 

70,685

 

Inventories

 

22,733

 

16,792

 

14,948

 

Trade receivables

 

9,410

 

6,951

 

6,081

 

Receivables from financial services

 

76,876

 

56,785

 

52,638

 

Other receivables

 

17,497

 

12,924

 

15,848

 

Securities

 

5,258

 

3,884

 

3,268

 

Cash and cash equivalents

 

10,520

 

7,771

 

11,017

 

Non-fixed assets

 

142,294

 

105,107

 

103,800

 

Deferred taxes

 

5,591

 

4,130

 

2,688

 

Prepaid expenses

 

1,395

 

1,030

 

1,095

 

Total assets

 

247,334

 

182,696

 

178,268

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

Stockholder’s equity

 

45,408

 

33,541

 

34,481

 

Minority interests

 

1,231

 

909

 

470

 

Accrued liabilities

 

56,272

 

41,566

 

39,172

 

Financial liabilities

 

103,728

 

76,620

 

75,690

 

Trade liabilities

 

17,483

 

12,914

 

11,583

 

Other liabilities

 

11,788

 

8,707

 

8,805

 

Liabilities

 

132,999

 

98,241

 

96,078

 

Deferred taxes

 

2,963

 

2,189

 

2,736

 

Deferred income

 

8,461

 

6,250

 

5,331

 

Total liabilities and stockholders’ equity

 

247,334

 

182,696

 

178,268

 

 

 

 

 

 

 

 

 

Equity ratio [%](2)

 

17.5

 

17.5

 

18.5

 

 


(1) Rate of exchange: € 1 = US $ 1.3538 (based on the noon buying rate on Dec. 31, 2004).

(2) Based on equity excluding proposed dividend.

 



 

Consolidated Balance Sheets - Industrial Business and Financial Services

 

 

 

- unaudited -

 

 

 

Industrial Business

 

Financial Services

 

 

 

at December 31,

 

at December 31,

 

(in millions)

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Goodwill

 

1,945

 

1,757

 

58

 

59

 

Other intangible assets

 

2,602

 

2,731

 

69

 

88

 

Property, plant and equipment, net

 

33,835

 

32,761

 

166

 

156

 

Investments and long-term financial assets

 

6,767

 

8,416

 

276

 

332

 

Equipment on operating leases, net

 

3,099

 

2,890

 

23,612

 

21,495

 

Fixed Assets

 

48,248

 

48,555

 

24,181

 

22,130

 

Inventories

 

15,317

 

13,560

 

1,475

 

1,388

 

Trade receivables

 

6,755

 

5,851

 

196

 

230

 

Receivables from financial services

 

 

 

56,785

 

52,638

 

Other receivables

 

9,209

 

11,129

 

3,715

 

4,719

 

Securities

 

3,474

 

2,801

 

410

 

467

 

Cash and cash equivalents

 

6,771

 

9,719

 

1,000

 

1,298

 

Non-fixed assets

 

41,526

 

43,060

 

63,581

 

60,740

 

Deferred taxes

 

3,988

 

2,527

 

142

 

161

 

Prepaid expenses

 

953

 

1,002

 

77

 

93

 

Total assets

 

94,715

 

95,144

 

87,981

 

83,124

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

Stockholder’s equity

 

25,439

 

26,361

 

8,102

 

8,120

 

Minority interests

 

885

 

454

 

24

 

16

 

Accrued liabilities

 

40,506

 

38,439

 

1,060

 

733

 

Financial liabilities

 

8,680

 

11,779

 

67,940

 

63,911

 

Trade liabilities

 

12,704

 

11,359

 

210

 

224

 

Other liabilities

 

6,095

 

6,030

 

2,612

 

2,775

 

Liabilities

 

27,479

 

29,168

 

70,762

 

66,910

 

Deferred taxes

 

(3,989

)

(3,377

)

6,178

 

6,113

 

Deferred income

 

4,395

 

4,099

 

1,855

 

1,232

 

Total liabilities and stockholders’ equity

 

94,715

 

95,144

 

87,981

 

83,124

 

 

 

 

 

 

 

 

 

 

 

Equity ratio [%](1)

 

25.3

 

26.1

 

 

 

 

 

 


(1) Based on equity excluding proposed dividend.

 



 

Cash Flow and Net Liquidity

 

 

 

- unaudited -

 

Cash flow information

 

 

 

 

 

 

 

Industrial Business

 

Financial Services

 

 

 

at December 31,

 

at December 31,

 

at December 31,

 

(in millions)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

Cash provided by operating activities(1)

 

11,060

 

13,826

 

3,753

 

6,785

 

7,307

 

7,041

 

Cash used for investing activities(1)

 

(16,682

)

(13,608

)

(2,869

)

(3,180

)

(13,813

)

(10,428

)

Cash provided by (used for) financing activities

 

2,549

 

2,518

 

(3,681

)

(1,316

)

6,230

 

3,834

 

 


(1) Amounts reported in previous years have been reclassified to conform with current year presentation.

 

Reconciliation to free cash flow

 

 

 

 

 

 

 

Industrial Business

 

Financial Services

 

 

 

at December 31,

 

at December 31,

 

at December 31,

 

(in millions)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

Cash provided by operating activities

 

11,060

 

13,826

 

3,753

 

6,785

 

7,307

 

7,041

 

Cash used for investing activities

 

(16,682

)

(13,608

)

(2,869

)

(3,180

)

(13,813

)

(10,428

)

Change in liquidity (> 3 months)

 

853

 

396

 

873

 

272

 

(20

)

124

 

Free Cash Flow

 

(4,769

)

614

 

1,757

 

3,877

 

(6,526

)

(3,263

)

 

Net liquidity

 

 

 

 

 

 

 

Industrial Business

 

Financial Services

 

 

 

at December 31,

 

at December 31,

 

at December 31,

 

(in millions)

 

2004

 

2003

 

2004

 

2003

 

2004

 

2003

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

originally maturing within 3 months

 

7,381

 

10,767

 

6,381

 

9,469

 

1,000

 

1,298

 

originally maturing after 3 months

 

390

 

250

 

390

 

250

 

 

 

Total cash and cash equivalents

 

7,771

 

11,017

 

6,771

 

9,719

 

1,000

 

1,298

 

Securities

 

3,884

 

3,268

 

3,474

 

2,801

 

410

 

467

 

Other

 

 

 

 

 

 

 

Liquidity

 

11,655

 

14,285

 

10,245

 

12,520

 

1,410

 

1,765

 

Financial liabilities(1)

 

(75,990

)

(74,652

)

(8,051

)

(10,745

)

(67,939

)

(63,907

)

Net liquidity

 

(64,335

)

(60,367

)

2,194

 

1,775

 

(66,529

)

(62,142

)

 


(1) Adjusted for market valuation.

 



 

Performance Measures

 

 

 

- unaudited -

 

Net Assets and Return on Net Assets

 

 

 

2004

 

2003

 

2004

 

2003

 

 

 

(annual average, in billions of €)

 

%

 

%

 

 

 

Net Assets

 

Return on Net Assets

 

DaimlerChrysler Group (after taxes)

 

56.3

 

60.0

 

5.6

 

2.4

 

 

 

 

 

 

 

 

 

 

 

Industrial divisions (before interest and taxes)

 

 

 

 

 

 

 

 

 

Mercedes Car Group

 

13.5

 

12.8

 

12.3

 

24.3

 

Chysler Group

 

8.7

 

11.6

 

16.4

 

(4.4

)

Commercial Vehicles

 

9.7

 

7.0

 

13.8

 

11.5

 

Other industrial activities (1)

 

4.7

 

6.4

 

13.4

 

22.4

 

 

 

 

Stockholder’s Equity

 

Return on Equity

 

 

 

 

 

 

 

 

 

 

 

Financial Services (before taxes)

 

8.1

 

8.4

 

22.0

 

17.7

 

 


(1) Includes the Business Unit Off-Highway and the investment in EADS; 2003 also including MTU Aero Engines and the investment in MMC.

 

Net Assets (year-end) of the DaimlerChrysler Group

 

(in millions)

 

2004

 

2003

 

 

 

 

 

Stockholder’s equity

 

31,479

 

31,913

 

Minority interests

 

909

 

470

 

Financial liabilities of the industrial segment

 

8,680

 

11,779

 

Pension provisions of the industrial segment

 

13,867

 

13,416

 

Net assets

 

54,935

 

57,578

 

 

Reconciliation to Net Operating Income

 

(in millions)

 

2004

 

2003

 

 

 

 

 

Net income (loss)

 

2,466

 

448

 

Minority interests

 

(108

)

35

 

Interest expense related to industrial activities, after taxes

 

295

 

377

 

Interest cost of pensions related to industrial activities, after taxes

 

512

 

607

 

Net operating income

 

3,165

 

1,467

 

 

Assumptions for the valuation of pension obligations and return on plan assets

 

 

 

2004

 

2003

 

(in%)

 

German
plans

 

US
plans

 

German
plans

 

US
plans

 

Discount rate for the valuation of the projected benefit obligations at year-end

 

4.75

 

5.75

 

5.25

 

6.25

 

Expected return on plan assets

 

7.50

 

8.50

 

7.50

 

8.50

 

Actual return on plan assets

 

8.20

 

13.70

 

14.60

 

23.00

 

 



 

Compensation of the Board of Management

 

 

- unaudited -

 

Compensation of the Board of Management

 

 

 

2004

 

2003

 

04/03

 

Total remuneration (in millions of €)

 

31.6

 

40.8

 

-22.5

%

Number of performance-based awards

 

395,000

 

503,000

 

-21.5

%

Number of stock options

 

1,265,000

 

3,140,000

 

-59.7

%

 



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

DaimlerChrysler AG

 

 

 

 

 

 

 

By:

/s/ ppa.

Robert Köthner

 

 

 

Name:

Robert Köthner

 

 

Title:

Vice President

 

 

 

Chief Accounting Officer

 

 

 

 

 

 

 

 

 

By:

/s/ i.V.

Silvia Nierbauer

 

 

 

Name:

Silvia Nierbauer

 

 

Title:

Director

 

 

 

 

 

 

Date: February 10, 2005