DaimlerChrysler says most of its restructuring efforts are moving as planned and operating profits for 2002 should be twice the 2001 level by “a very significant amount.”
At the same time, however, it hinted at further changes in its commercial vehicle operations.
Overall, the company posted 2001 revenues of 152.9 billion euros ($133.02 billion). After one-time adjustments, revenues were virtually unchanged from the previous year. Excluding one-time effects, its operating profit was 1.35 billion euros ($1.17 billion) which it said was within the target range announced a year ago. One-time charges during the year totaled 2.7 billion euros, mainly for turnaround activities at Freightliner, Mitsubishi Motors and the Chrysler Group. After one-time effects, the company posted a net loss of 662 million euros ($575.9 million).
Revenues for the commercial vehicles group totaled 28.6 billion euros ($24.9 million), but operating profit, after one-time effects, was only 51 million euros. DaimlerChrysler blamed most of the loss on Freightliner. At a news conference the company said it expected the commercial vehicles unit to be profitable this year but also said it might have to spend more on restructuring costs.
The Mercedes-Benz Passenger Cars & smart division had revenues of 47.7 billion euros. Operating profit, after one-time effects, was 2.96 billion euros. Its Chrysler unit had an operating loss of 359 million euros ($320 million) in the quarter. DaimlerChrysler said it has been battered by the fallout of the Sept. 11 terrorist attacks and by brutal price cutting in the U.S. auto market. It still expects Chrysler to break even this year but, to do so, the company will have to intensify and accelerate some aspects of its turnaround plan.