Mercedes 2003 Annual Report Download - page 66
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Please find page 66 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.1,285
440
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1,619
554
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229
Other Activities
Until December 2003, the Other Activities segment also included
the MTU Aero Engines business unit. Effective December 31, 2003,
MTU Aero Engines was sold to Kohlberg, Kravis and Roberts & Co.
Ltd. (KKR), an investment company.
In a difficult market environment, which further deteriorated as a
result of the war in Iraq and the SARS epidemic, revenues at the
MTU Aero Engines business unit declined in 2003 by 13% to €1.9
billion. The main reasons were the substantial appreciation of the
euro against the US dollar, lower revenues from the civilian spare-
parts and engines business, and the cancellation of maintenance
contracts with FedEx, a delivery service. Despite the generally
difficult economic situation, MTU Aero Engines succeeded in making
a positive contribution to the Group’s operating profit in 2003.
The Other Activities segment posted an operating profit of €1.3
billion (2002: €0.9 billion). The 2003 figure included a gain of
€1.0 billion from the sale of MTU Aero Engines, while the previous
year’s figure included a gain of €156 million from the sale of our
40% stake in Conti Temic microelectronic and related activities.
Excluding these capital gains, the Other Activities segment’s
earnings decreased, primarily due to the negative contribution to
earnings from Mitsubishi Motors Corporation and a lower contri-
bution from EADS for the period of October 2002 through September
2003.
Sale of MTU Aero Engines business unit |EADS anticipates earnings and revenues at levels
similar to prior year |North American business negatively affected Mitsubishi Motors’ results;
favorable business developments in Europe and Asia
Divisions | Mercedes Car Group | Chrysler Group | Commercial Vehicles | Executive Automotive Committee | Services | Other Activities
Amounts in millions US $
2003
€€
903
508
137
127
21,184
20022003
The Other Activities segment consists of DaimlerChrysler’s holdings
in the European Aeronautic Defence and Space Company (EADS,
33%) and the Mitsubishi Motors Corporation (MMC, 37%), along
with Corporate Research, our real-estate activities and our holding
and financing companies. The operating results for EADS and
Mitsubishi Motors, as determined by the proportion of our interest
in these companies, are included in the operating profit of
DaimlerChrysler with a time lag of one quarter. DaimlerChrysler’s
operating profit for 2003 thus includes these companies’
contributions for the twelve months from October 2002 through
September 2003.
Operating Profit
Revenues 1
Investments in property,
plant and equipment
Research and development
expenditure 1
Employees (Dec. 31)
1 Excluding MTU Aero Engines