Mercedes 2003 Annual Report Download - page 64
Download and view the complete annual report
Please find page 64 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.1,240
14,037
98,199
76
11,035
1,562
17,682
123,701
96
Services
Volume figures at prior-year level after adjusting for currency
translation. Revenues declined by 11% to €14.0 billion in 2003.
However, when adjusted for exchange-rate effects, revenues
remained at the previous year’s level. The drop in new business
from €51.8 billion to €47.5 billion was also mainly due to a stronger
euro compared to the US dollar. When adjusted for exchange-rate
effects, new business rose by 4%. Contract volume declined 10%
to €98.2 billion. This was entirely the result of exchange-rate
movements. If exchange rates had remained unchanged from 2002,
contract volume would have risen by 2%.
In 2003, DaimlerChrysler Services’ workforce increased from
10,521 to 11,035 employees. With 5,475 employees, around half
the total workforce was located in the NAFTA region.
Financial services support vehicle sales. Despite the difficult
market environment, the Services division leased out or financed
1.9 million vehicles in 2003. The company’s broad range of financial
services supported the sales activities of the Mercedes Car Group,
Chrysler Group and Commercial Vehicles divisions. One-third
of all vehicles sold were financed or leased out by DaimlerChrysler
Services.
DaimlerChrysler Services significantly boosts operating profit from ongoing business to €1.2 billion |
Key support for automotive brands |New sales structure in the United States |DaimlerChrysler Bank
expands service offering
Divisions | Mercedes Car Group | Chrysler Group | Commercial Vehicles | Executive Automotive Committee | Services | Other Activities
Amounts in millions US $
2003
€€
3,060
15,699
109,252
95
10,521
20022003
Operating profit
Revenues
Contract volume
Investments in property,
plant and equipment
Employees (Dec. 31)
Significant increase in operating profit. In 2003, DaimlerChrysler
Services posted a strong operating profit from its ongoing business
of €1.2 billion. The previous year’s operating profit of €3.1 billion
included a special gain of €2.1 billion resulting from the sale of the
company’s 49.9% stake in T-Systems ITS to Deutsche Telekom, as
well as impacts from an impairment charge after the sale of parts
of its Capital Services portfolio and effects of the economic crisis
in Argentina. The improvement in the operating business was
primarily due to higher interest margins and favorable refinancing
terms. An additional factor was that charges for credit and residual-
value risks were reduced from the previous year.
DaimlerChrysler Services is the world’s third-largest captive
financial-services company, and is strategically well positioned
with companies in 39 countries.