Daimler Chrysler today published its preliminary earnings results for 2005. DaimlerChrysler Group posted an operating profit of $6.1 billion, compared with $6.8 billion in 2004. Excluding charges relating to the realignment of the Smart business model ($1.3 billion), there was an increase in the Group’s operating profit. DaimlerChrysler recorded net income of $3.4 billion in 2005, compared with $2.9 billion in the prior year. Based on the reported net income, earnings per share amounted to $3.32, compared with $2.88 in 2004.
At the Mercedes Car Group, the measures taken to improve efficiency 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.
Dr. Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler AG, stated, “DaimlerChrysler made significant progress in the year 2005. But our earnings are still not where we want them to be. We intend to grow profitably and to create added value over the long term — for the benefit of our customers, employees and shareholders.”
DaimlerChrysler sold more than 4.8 million vehicles in 2005, surpassing the prior-year figure by 3%.
The Mercedes Car Group sold 1,216,800 vehicles in 2005 (2004: 1,226,800).
The success of the new models launched in the market led to significantly higher revenues for the Mercedes-Benz brand in the second half of the year. As a result, unit sales in 2005 were slightly higher than the figure recorded in 2004.
Revenues of $59.2 billion slightly exceeded the prior year’s level. The Mercedes Car Group posted an operating loss of $598 million for 2005, compared with an operating profit of $2.0 billion in the prior year.
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.
Worldwide, the Chrysler Group posted factory unit sales of 2.8 million Chrysler, Jeep and Dodge brand passenger vehicles, an increase of 1% compared to the prior year.
