Q2 Daimlerchrysler

Su Daimlerchrysler sembra che il sole sia tornato a splendere:Business Review

Substantial improvement in Group operating profit from €0.6 billion to €2.1 billion

Revenues up 9% to €37.1 billion

Operating profit at Mercedes Car Group below prior-year level, as expected

Chrysler Group makes a significant profit once again, after a loss in Q2 2003

Very positive earnings trend continues at Commercial Vehicles

Further increase in operating profit at Services

Significant improvement in Group operating profit expected for full-year 2004

Slightly higher unit sales of automobiles in the triad markets

The development of the global economy was generally positive in the second quarter of 2004. This applies above all to North America, Japan and most of the emerging markets. Economic recovery in the euro zone, especially Germany, has so far been rather sluggish, however.

Indications in the international automotive markets have been mainly positive so far this year. Rising fuel prices and consumers’ resulting caution have, however, led to weaker demand in some markets. In the US automobile market, unit sales increased only slightly, despite the economic revival and the continuation of high customer incentives. Although demand for cars in Germany remained weak, unit sales in the whole of Western Europe rose slightly. The Asian emerging markets were rather less dynamic than in the first quarter.

Significant earnings improvement in the second quarter

DaimlerChrysler substantially increased its second-quarter operating profit from €0.6 billion to €2.1 billion. Whereas the Chrysler Group, Commercial Vehicles and Services significantly improved their earnings, the operating profits of the Mercedes Car Group and the Other Activities segment were lower than in Q2 2003.

As expected, the Mercedes Car Group’s operating profit of €703 million did not equal the result of the prior-year quarter. This was primarily due to a mainly lifecycle-related decrease in unit sales of Mercedes-Benz passenger cars, high launch costs and start-up costs for new products, as well as the continuation of the quality offensive.

The Chrysler Group achieved an operating profit of €516 million compared with a loss in the second quarter of 2003. This strong improvement is mainly due to the market success of the new products, higher unit sales and further cost reductions.

Commercial Vehicles posted an operating profit of €468 million, a significant improvement over the result for Q2 2003 (€222 million). The main factors behind the positive development were significantly higher unit sales and the successful implementation of efficiency-enhancing programs in all of the division’s business units.

The Services division increased its second-quarter operating profit substantially from €334 million in 2003 to €472 million as a result of the improved profitability of its entire portfolio and a reduced need for risk provisioning.

The Other Activities segment posted an operating profit of €85 million (Q2 2003: €217 million). Due to the three-month time lag with the consolidation of Mitsubishi Motors (MMC), this result is primarily impacted by MMC’s operating loss for the last quarter of its 2003/04 financial year. An additional factor was that there was no profit contribution from the MTU Aero Engines business unit, which was sold in 2003.

Net income amounted to €554 million (Q2 2003: €109 million). The generally positive development of the Group’s operative business was partially offset by a negative impact from MMC’s net loss in its 2003/04 financial year, which included high impairments on deferred tax assets and reduced DaimlerChrysler’s net income by nearly €0.5 billion. Earnings per share rose from €0.11 to €0.55.

Risultati ottimi nettamente migliori di Ford e GM. Ma gli analisti di credit suisse avvisano che forse Chrysler, per tenere il passo di Ford e Gm nella guerra degli incentivi, non riuscirà a ottenere profitti.