Daimler-Benz confirms upturn; sales volume expected to rise to some DM 103 billion - rationalization program on target - positive results.STUTTGART, Germany--(BUSINESS WIRE)--Dec. 13, 1994--The continuing favorable course of business, accompanied by increased sales revenue and effective cost reduction programs, is encouraging positive expectations overall for the 1994 business year. As Edzard Reuter Edzard Reuter (born February 16 1928) was the CEO of Daimler-Benz from 1987 to 1995. Edzard Reuter was born in Berlin, his father was the popular social democratic politician and mayor of Berlin from 1948 to 1953, Ernst Reuter. , chairman of the Board of Management of Daimler-Benz AG, told journalists in Stuttgart, recent results have confirmed the upturn in earnings. Increased business volumes, along with cost reduction measures, have enabled the group to futher increase the rise in sales already registered in the first half of the year. The operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. will be more than double the figure for the first half of 1994 (DM 926 million). This growth in sales, which over the first three quarters of the year amounted to 9%, continued into October, Reuter added. 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. the current state of planning, a sales volume of DM 103 billion can be expected for 1994, more than ever before in the company's history. The company will continue to pursue the course of globalization globalization Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation , streamlining and enhanced productivity; this also entails further personnel reduction mearsures. At the end of October the Daimler-Benz group employed a workforce of 336,600 - some 18,000 fewer than on Dec. 31, 1993, calculated on a comparable basis. At Mercedes-Benz, the workforce was reduced by 10,200, and at Deutsche Aerospace, which from Jan. 1, 1995 will be known as Daimler-Benz Aerospace, 7,000 fewer employees were under contract. Independent of structural changes -- e.g. the sale of activities in the domestic appliance domestic appliance domestic n → appareil ménager sector - the workforce of 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 was reduced by some 2,000 employees. "With our rigorous rationalisation and restructuring programmes, we are undoubtedly in a position to benefit to a considerable degree from the economic upswing Upswing An upward turn in a security's price after a period of falling prices. ," explained Reuter with reference to 1994. For 1995, he was optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that the positive developments which had characterized the current year would continue as a consequence of the internal measures. Mercedes-Benz is expected to increase its sales to some DM 70 billion in 1994, corresponding to a rise of 9%. For the passenger car sector, global sales of 585,000 units are forecast, amounting to an increase of a good 15% over the previous year's figure. This is largely due to the resounding re·sound v. re·sound·ed, re·sound·ing, re·sounds v.intr. 1. To be filled with sound; reverberate: The schoolyard resounded with the laughter of children. 2. success of the C-class both in Germany and abroad and to the stable development of sales of the E, S and SL-class models. Sales of Mercedes-Benz commercial vehicles - especially vans and trucks - will have increased by more than 10%. At the foreign production locations, sales rose by over 20%, in particular at the U.S. subsidiary Freightliner; increased sales were also registered in Brazil, Argentina, South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. and Mexico. Throughout the group, some 290,000 commercial vehicles were sold; this represents an increase of approximately 15%. AEG Daimler-Benz Industrie is expecting a 5% rise in sales over the previous year's figure - calculated on a comparable basis - to more than DM 10 billion for 1994. These results, which showed quite some variation throughout the company, were also influenced by economic conditions in the individual sectors. The activities of AEG Daimler-Benz Industrie were characterized in 1994 by continuing pressure to keep down prices which brought with it an unsatisfactory revenue level. Deutsche Aerospace, soon to be renamed Daimler-Benz Aerospace, once again has had a rather difficult year. Sales for 1994 are expected to remain somewhat below those for the previous year (1993: DM 18.6 billion). The sluggish market in the fields aviation, defense systems and civilian applications had its consequences. Daimler-Benz InterServices (debis) is continuing to show positive development, with an expected increase in sales by 14% to almost DM 11 billion. 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, 49-711-17-93635
or
Ursula Mertzig, 49-711-17-93315
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