Daimler-Benz: No Dividend for 1995; Realignment of Portfolio Costs DM 5.1 billion - Profitable 2nd Half of 1995.STUTTGART, Germany--(BUSINESS WIRE)--April 3, 1996--The board of management together with the supervisory board Supervisory board The board of directors that represents stakeholders in the governance of the corporation. of Daimler-Benz will recommend at the annual general shareholders' meeting shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. in Stuttgart on May 22, to pay no dividend on its common stock for the business year 1995. "This is further proof of our commitment to return to financial strength and sustained profitability as quickly as possible, for the sake of our shareholders and employees," said Juergen E. Schrempp, chairman of Daimler-Benz, Europe's largest industrial concern, after today's joint decision-making meeting of both boards. Since the summer of 1995, the new management board of Daimler-Benz has taken drastic measures to improve the performance of the group's business portfolio by eliminating loss-making businesses, re-focusing on areas that hold profit and growth potential and implementing further cost-cutting programs. This will result in a one-time charge of DM 5.1 billion within the 1995 financial statements of the group. DM 3.9 billion can be attributed to the settling of the 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 activities and to the consequences from the bankruptcy of Dutch aircraft manufacturer Fokker. DM 1.2 billion has been allocated to cover additional restructuring programs and further adjustments throughout Daimler-Benz. The group's 1995 financial statements will show a net loss of DM 5.7 billion, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. both German accounting and the U.S. Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). This is an improvement over the forecast of January 22, when Daimler-Benz ceased financial support to Fokker and announced a net loss of DM 6 billion. This improvement can be attributed to Daimler-Benz' business units, Mercedes-Benz and Daimler-Benz InterServices (debis), which together represent 80% of total revenues of the Daimler-Benz group, both reporting profitable operations for 1995. In spite of a continuing adverse currency situation, Daimler-Benz saw improved operating results in the second half of 1995. For the year, the group will report an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of DM 1.1 billion (1st half of 1995; loss of DM 1.2 billion). According to Mr. Schrempp, the board of management is confident that Daimler-Benz will return to profitability in 1996. "The strenuous efforts of the last few months should send a strong signal to Daimler-Benz shareholders that we are determined to provide an attractive return on their investment," Mr. Schrempp emphasized. The annual balance sheet press conference will be held in Stuttgart on April 11. Video footage of statements by Daimler-Benz chairman Juergen Schrempp will be available upon request. 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, 011-49-711-17-93635 Eckhard Zanger, 011-49-711-17-93311 or Daimler-Benz North America Corporation Corporate Communications Bernhard Harling, 212/909-9717 |
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