Mercedes 2001 Annual Report Download - page 42

38 Services
Well positioned with Group-focused financial services.
DaimlerChrysler Services is well positioned for the
future in the dynamic growth markets of financial and
mobility services. The division continues to concentrate
on DaimlerChrysler’s core automotive business, and
uses its innovative products to extend the value chain
of the Group’s brands. DaimlerChrysler Services also
offers fleet management programs, mobility services
and target-group focused insurance solutions. Great
success has been achieved in using services to support
the sales of vehicles by the Mercedes-Benz Passenger
Cars & smart, Chrysler Group and Commercial Vehicles
divisions. With more than 100 operating companies in
38 countries in the four regions of North America,
Europe, Asia/Pacific, and South America/Africa/Middle
East, DaimlerChrysler Services is one of the world’s
leading providers of automotive financial services.
Further increase in revenues at Financial Services.
DaimlerChrysler Services posted revenues of €16.9 bil-
lion in 2001 (2000: €17.5 billion). Excluding the rev-
enues of debis Systemhaus (IT services), which were
fully consolidated in the first nine months of the prior
year, revenues increased by 12%. New business was
slightly lower than in the prior year at €54.9 billion, as
we had anticipated. With a share of €35.7 billion, the
US remained DaimlerChrysler Services’ most important
market for new business (2000: €35.4 billion).
Worldwide contract volume reached €131.8 billion
(2000: €126.3 billion); adjusted for exchange-rate
effects, the portfolio was around the same size as a
year earlier. Again, the largest share was accounted for
Financial Services well positioned for the future
■Adjusted operating profit only slightly below prior year's level despite difficult situation
in North America
■As expected, new business slightly down from prior year at €54.9 billion
■Strategic refocus of Services
by North America (€95.0 billion). As a result of the
global presence of the Financial Services division, one
of every three DaimlerChrysler vehicles sold was
financed by DaimlerChrysler Services. The size of the
non-automotive portfolio was reduced in 2001.
Adjusted earnings slightly below prior year’s level
despite difficult market conditions in North America. In
2001, the division achieved an operating profit of €0.6
billion – significantly lower than the previous year
(€2.5 billion), which was positively affected by one-time
effects totaling €1.8 billion. Operating profit in 2001 in-
cluded one-time income of €0.3 billion arising from the
sale of the remaining debitel AG shares to Swisscom,
a Swiss telecommunications company, as well as one-
time losses of €0.1 billion caused by the devaluation of
the Argentinean peso against the US $ and of €0.2
billion for the sale of parts of the capital services port-
folio in the United States that was agreed on in January
2002. Excluding one-time effects, there was an operat-
ing profit of €0.6 billion, slightly lower than the level
of the prior year. Business was impacted by continuing
pressure on margins, provisions for risks associated
with the commercial vehicle portfolio, and residual-
value losses in connection with Chrysler Group ve-
hicles. Competitive pressures have intensified in the
financial services business due to the entry of new
companies and the merger of established firms. These
negative factors were offset by the efficient utilization
of the available refinancing instruments, and by an
optimized cost structure resulting from measures
designed to improve profitability.
Operating profit
Operating profit adjusted
Revenues
Contract volume
Investments in property,
plant and equipment
Employees (Dec. 31)
Amounts in millions
2,457
641
17,526
126,314
282
9,589
612
578
16,851
131,828
112
9,712
545
514
14,999
117,340
100
2000
€
2001
€
2001
US $