Thursday, February 16, 2006

DaimlerChrysler Reports EUR 5.2 Billion Operating Profit in 2005

- Net income of EUR 2.8 billion 2004: EUR 2.5 billion)
- Earnings per share of EUR 2.80 (2004: EUR 2.43)
- Revenues up 5% to EUR 149.8 billion

At the Mercedes Car Group, the measures taken to improve efficiency as a part of the CORE program and new products had a positive impact on operating results during the course of the year; the turnaround in earnings was achieved. Nonetheless, earnings for the full year were negative due to the realignment of the smart business model and the expenses for the personnel measures. In a difficult market environment, the Chrysler Group achieved a higher operating profit than in 2004. The Commercial Vehicles Division also developed positively in 2005 and achieved record earnings. Financial Services improved its operating profit. Other Activities’ operating profit exceeded the prior year’s result.
Unit sales of the smart brand totaled 124,300 vehicles in the year under review (2004: 152,100). As part of the restructuring program for smart that was announced in April 2005, DaimlerChrysler discontinued production of the smart roadster and development of the planned smart SUV. The workforce was reduced from 1,350 to 750 employees at smart headquarters, and there was a reduction of 125 employees at the Hambach plant. As a result of these measures, smart succeeded in reducing fixed costs by 26% in the year under review, thus achieving its goals for the year 2005.

Read the full report here.

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