DAIMLER-BENZ REVENUES AND OPERATING PROFITS RISE AS RESTRUCTURING CONTINUES; 1995 Loss Marked by High One-time Charges.STUTTGART Stuttgart, city, Germany Stuttgart (sht  t`gärt), city (1994 pop. 594,406), capital of Baden-Württemberg, SW Germany, on the Neckar River. , Germany--(BUSINESS WIRE)--April 11, 1996--Corporate
restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). , including severe cost-cutting and streamlining measures,
has resulted in improved revenues and operating income Operating IncomeThe profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. at Daimler-Benz
Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. for 1996. "We are making good progress toward fulfilling our ambitious profit targets," Mr. Schrempp said. "We owe this to a combination of factors including Mercedes-Benz' successful product introductions, the successful and future-oriented Future-oriented is a term used in finance and economics to describe agents that discount the future lightly and so have a low discount rate, or equivalently a high discount factor. businesses of Daimler-Benz InterServices (debis) and the measures Daimler-Benz Aerospace (Dasa) is taking to increase productivity and reduce exposure to foreign currency risks," Mr. Schrempp said. The Daimler-Benz Chairman cautioned, however, that "further tough decisions" must be made before earnings for the group reach "satisfactory" levels. For 1995, Daimler-Benz reported a consolidated net loss of DM 5.7 billion. Sales revenues for the year matched those of 1994 at approximately DM 103.5 billion. The new Daimler-Benz Board of Management, under Mr. Schrempp, has been in place since May 1995. Since then it has taken decisive action to realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. the company around profitable businesses. This has required the sale of loss-making operations and subsidiaries with -- whenever possible -- all resulting costs charged in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. in 1995. "Wherever permissible per·mis·si·ble adj. Permitted; allowable: permissible tax deductions; permissible behavior in school. per·mis , all present obligations have been accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. for the 1995 accounts," emphasized Chief Financial Officer Dr. Manfred Manfred (măn`frəd, Ger. män`frāt), c.1232–1266, king of Sicily (1258–66), the last Hohenstaufen on that throne. Gentz. Streamlining in loss-producing business activities (Fokker, AEG AEG Aeger (Latin: Sick) AEG Allgemeine Elektrizitäts-Gesellschaft (Common Electricity Company) AEG Aircraft Evaluation Group AEG Association of Engineering Geologists AEG Air Expeditionary Group Daimler-Benz Industrie) resulted in one-time charges of DM 3.9 billion in 1995. Mr. Schrempp said under the new management team Daimler-Benz had reduced the number of Daimler-Benz businesses to 28 from 35 and the worldwide workforce to 292,500 today from 330,500 at the end of 1994. For the first quarter of 1996, Daimler-Benz reported a 7% increase in sales revenues to DM 23.6 billion overall due principally to strong sales performance by Mercedes-Benz and Daimler-Benz InterServices (debis). Mercedes-Benz benefited both from cost-cutting measures and the successful introduction of new model automotive product lines. Sales revenues in the first three months of 1996 rose by 7% to more than DM 18 billion worldwide including a 15% increase to DM 7 billion in Germany. First quarter worldwide sales of 145,400 cars exceeded year ago sales figures sales figures npl → cifras fpl de ventas by 4%. In Germany, the success of the new E-class automobile played a major role in increasing the company's automotive market share to 8%. Debis sales rose 13% to DM 3 billion in the first quarter of 1996.
If you have further questions, please contact:
Daimler-Benz AG, Corporate Communications
Roland Klein Tel: 011-49-711-17-93635
Eckhard Zanger Tel: 011-49-711-17-93311
Fax: 011-49-711-17-94686
or
Daimler-Benz North America Corporation
Corporate Communications
Bernhard Harling Tel: 212/909-9717
Fax: 212/308-4252
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THE 1995 BUSINESS YEAR AT A GLANCE
Daimler-Benz Group 1995 1994 Change Revenues in DM billion 103.549 102.686 +0.863 (+1%) Foreign share of revenues 63% 63% none Employees (at year-end) 310,993 330,551 -19,558 Operating result in DM billion -1.096 +2.708 -3.804 Net income/loss in DM billion -5.734 +0.895 -6.629
1995 1994
Operating result in DM billion -1.1 +2.7 Includes exceptional items in DM billion Deconsolidation of Mercedes-Benz Leasing KG +0.6 Sale of companies +0.4 Technolease +0.4 Structural expenditure -1.2 -1.1 Dollar-related provisions for risks in order-backlog -0.8 Mercedes Benz 1995 1994 Change Revenues in DM billion 72.030 70.715 +1.315 (+2%) Foreign share of revenues 61% 62% -1 pct. point Unit sales, cars 583,432 592,356 -2% Unit sales, commercial vehicles 320,089 290,354 +10% Employees (at year-end) 197,164 197,568 -404 Operating result in DM billion(a) 2.296 2.245 +0.051 Net income in DM billion 2.275 1.849 +0.426 AEG Daimler-Benz Industrie 1995 1994 Change Revenues in DM billion 10.312 10.101 +0.211 (+2%) Foreign share of revenues 51% 45% +6 pct. points Employees (at year-end) 49,432 52,405 -2,973 Operating result in DM billion(a) -0.502 -0.111 -0.391 Net loss in DM billion -2.256 -0.357 -1.899 Daimler-Benz Aerospace (Dasa) 1995 1994 Change Revenues in DM billion 15.037 15.000 +0.037 Foreign share of revenues 74% 69% +5 pct. points Employees (at year-end) 50,784 55,744 -4,960 Operating result in DM billion(a) -2,698 -465 -2.233 Net loss in DM billion -4.182 -0.438 -3.744 Daimler-Benz InterServices (debis) 1995 1994 Change Revenues in DM billion 11.784 10.804 +0.980 (+9%) Foreign share of revenues 47% 45% +2 pct. points Employees (at year-end) 10,196 9,226 +970 Operating result in DM million(a) 245 375 -130 Net income in DM million 91 86 +5 (a) Contribution to the operating result of the Daimler-Benz group CONTACT: Daimler-Benz AG, Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. Roland Klein Klein , Melanie 1882-1960. Austrian-born British psychoanalyst who first introduced play therapy and was the first to use psychoanalysis to treat young children. Tel: 011-49-711-17-93635 Eckhard Zanger Tel: 011-49-711-17-93311 Fax: 011-49-711-17-94686 or Daimler-Benz North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Corporation Corporate Communications Bernhard Harling Tel: 212/909-9717 Fax: 212/308-4252 |
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