DaimlerChrysler third-quarter operating profit excluding one-time effects — rose from $US0.7 billion in Q3 2001 to $1.7 billion this year, the company said in a statement.
Net income for Q3, adjusted to exclude one-time effects, rose from $0.3 billion to $0.9 billion (+214%), while adjusted earnings per Share were up 214% to $0.87.
Unit sales of 1.1 million vehicles, 7% better than the same period last year, were achieved in markets that in some cases weakened. Total revenues increased by 1% to $35.9 billion and, adjusted for exchange-rate effects, were up 6%.
Including one-time effects, operating profit was $1.5 billion, equalling the previous year’s figure. There were one-time charges due to impairment adjustments and restructuring expenditures at commercial vehicles, Chrysler group, and the services division.
The previous year’s figures were influenced by the high positive one-time gain resulting from the integration of Airbus. Including one-time effects, net income and earnings per share were therefore lower than in the previous year, at $0.8 billion and $0.76 respectively.
For the first nine months of 2002, the group achieved an adjusted operating profit of $4.6 billion, well above the result for the same period of last year ($0.8 billion). Including one-time effects, DaimlerChrysler posted an operating profit of $6.2 billion compared with an operating loss of $1.3 billion in 2001. This improvement was primarily due to the success of the restructuring activities initiated last year, particularly at Chrysler and Freightliner.
The Mercedes-Benz Passenger Cars & smart division boosting unit sales by 3% to 310,900 vehicles while revenues increased 6% to $12.1 billion.
Although the new E-class was not launched in the United States and the United Kingdom until September, and expenditure was incurred for the launch of the updated S-class, operating profit of $782 million almost equaled the high level attained in the third quarter of last year.
Despite difficult markets worldwide, Mercedes-Benzsales of 280,600 vehicles were slightly higher than the figure for the third quarter of 2001 (+1%), and the brand’s market share increased in almost all major markets.
In the United States retail sales were up by 2% to 50,800 vehicles. In Japan (11,600 units, +6%) and in Western Europe (185,700 units, +2%), sales increased against the market trend.
The smart brand achieved strong growth during the third quarter (30,300 cars, +18%).
Chrysler Group’s third-quarter sales increased by 8% to 681,600 vehicles.
Chrysler revenues decreased by 2% to $14.1 billion due to currency-translation effects. Measured in US dollars, there was actually a revenue increase of 8%.
In the third quarter, the effects of the turnaround plan and higher sales led to a strong rise in earnings compared with the same period last year. Excluding one-time effects, Chrysler achieved an operating Profit of $321 million, after an operating Loss of $264 million in the third quarter of 2001.
Despite challenging conditions throughout international commercial vehicle markets, the commercial vehicles division increased its third-quarter sales by 2% to 121,300 vehicles.
Revenues of $7.1 billion were similar to last year’s level. Operating profit excluding one-time effects of $141 million was significantly higher than both the second quarter of 2002 and the third quarter of 2001.
The Freightliner/Sterling/Thomas Built Buses business unit continued its positive development in the third quarter (31,800 vehicles, +27%). Due to unchanged difficult market conditions in South America and Western Europe, sales by the Mercedes-Benz trucks and DaimlerChrysler buses & coaches business units did not equal the previous year levels (25,100 trucks, -6% / 6,000 buses, -11%).
Sales of Mercedes-Benz vans were similar to last year’s figure at 56,300 vehicles.
At DaimlerChrysler Services, operating profit excluding one-time effects of $280 million significantly exceeded last year’s figure (+102%). The increase was primarily due to lower costs, more favourable refinancing conditions and a considerable improvement in the marketing of ex-lease vehicles.
Revenues of $3.8 billion in the third quarter were lower than in the same period of last year. New business increased by 23% to $15.2 billion, while total contract volume decreased mainly due to exchange- rate effects to $113.3 billion.
During the period of July to September, Mitsubishi Motors (MMC) achieved a strong increase in sales in the United States, where it sold 87,700 (+17%). Sales in Japan decreased to 89,400 vehicles (-9%) while unit sales in other important Asian markets increased.
DaimlerChrysler anticipates total revenues of $148 billion for full-year 2002 (2001: $151 billion).
Political and economic uncertainty continued to grow in the third quarter, and the company remains cautious in its assessment for the rest of the year 2002.
Assuming steady market developments, it now expects that operating profit excluding one-time effects should exceed $5 billion for full-year 2002.
