Mercedes 2003 Annual Report Download - page 54
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Please find page 54 of the 2003 Mercedes annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Chrysler Group
Earnings impacted by challenging market environment. The
Chrysler Group reported an operating loss of €506 million in 2003,
including restructuring costs of €469 million (2002: operating
profit of €0.6 billion including restructuring costs of €0.7 billion).
Although the Chrysler Group did not completely attain its target
of a small operating profit from ongoing business, it came very
close to this goal. Last year’s restructuring expenditures still
related mainly to the turnaround plan announced in February 2001.
In the second quarter, the Chrysler Group posted a substantial
operating loss reflecting sharp increases in customer incentives.
However, due in particular to further cost-reduction activities
and model renewals during the year, the Chrysler Group achieved
positive earnings in the third and fourth quarters. Overall, the
extremely successful measures we took to reduce costs, even
exceeding the additional mid-year target of US $1 billion incremental
savings, did not offset the losses from falling unit sales and higher
incentives.
Worldwide in 2003, the Chrysler Group sold 2.64 million passenger
cars, minivans, sport-utility vehicles and light trucks of the Chrysler,
Dodge and Jeep®brands (2002: 2.82 million). Retail sales in the US
decreased by 4% to 2.13 million vehicles. Sales growth for the
Dodge Ram pickup truck (+13%), the Jeep®Wrangler(+9%) and the
Dodge Durango (+1%) was offset by lower retail sales of Chrysler
and Dodge minivans (-8%) and passenger cars (-13%). Overall market
share in the United States was 12.5% (2002: 12.9%). Due to
currency-translation effects, lower unit sales and higher sales
incentives, revenues decreased to €49.3 billion (2002: €60.2
billion). In US dollars, revenues fell in 2003 by 2%.
Operating loss of €506 million including restructuring expenditures of €469 million |Result from
ongoing business close to breakeven |Earnings impacted by tough competition in the
US market |Significant improvements in productivity and product quality |Exciting new models
launched in 2003 |Nine new products planned for 2004
Divisions | Mercedes Car Group | Chrysler Group | Commercial Vehicles | Executive Automotive Committee | Services | Other Activities
(506)
49,321
2,487
1,689
2,552,308
2,637,867
93,062
(637)
62,130
3,133
2,128
Amounts in millions US $
2003
€€
609
60,181
3,155
2,062
2,749,903
2,822,659
95,835
20022003
Operating profit (loss)
Revenues
Investments in property,
plant and equipment
Research and development
expenditure
Production (units)
Unit sales
Employees (Dec. 31)