Mercedes 2004 Annual Report Download - page 74

DaimlerChrysler Off-Highway
Solid developments under difficult market conditions.
Following two weak years, demand for diesel engines rose in
2004. This was primarily driven by growth in Asia, which, however,
benefited manufacturers of diesel engines in countries with
currencies linked to the US dollar more than those in Europe,
due to the continued weakness of the dollar.
At €1.75 billion, DaimlerChrysler Off-Highway’s revenues in 2004
were about 2% higher than in the previous year. Growth was
achieved in particular in the segment of Power Generation
(engines for stationary electricity generators), as well as with
engines for trains and for yachts. In addition to Europe, the
region of Asia also contributed to the positive development.
The current energy shortage in China led to strong demand for
engines for stationary power generators.
In the year under review, the business unit recorded incoming
orders totaling €1.84 billion, 7% higher than the figure for 2003.
As was the case with revenues, incoming orders benefited mainly
from the demand for engines for stationary power generators, as
well as for train engines. The volume of orders received for ship
engines was also significantly higher than in the prior year.
The Other Activities segment consists of our 33% holding in
the EADS (European Aeronautic Defence and Space Company)
and, since January 1, 2004, the DaimlerChrysler Off-Highway
business unit. The previous year’s figures have been adjusted for
comparability. This segment also includes Corporate Research,
our real-estate activities and our holding and finance companies.
As DaimlerChrysler did not participate in a capital increase for
Mitsubishi Motors Corporation (MMC), our ownership interest in
MMC was reduced from 37% to 19.7% during 2004. As a result,
since June 30, 2004, our shareholding in Mitsubishi Motors
Corporation has been included in the consolidated financial
statements as a financial investment shown at fair value.
The Other Activities segment saw its operating profit decrease
from €1.3 billion to €0.5 billion. The reason for the reduction
is that the operating profit for the prior year included a gain of
€1.0 billion on the sale of MTU Aero Engines (see page 23).
Operating profit lower than prior-year result, which was boosted by gain on the sale of
MTU Aero Engines | DaimlerChrysler Off-Highway achieves growth in Europe and Asia |
EADS posts substantial increase in earnings
Other Activities
456
2,200
134
228
20,636
617
2,978
181
309
Amounts in millions US $
2004
€€
1,329
4,084
169
420
20,192
20032004
Operating profit 1
Revenues 1
Investments in property,
plant and equipment 1
Research and development expenditure 1
Employees (Dec. 31)
1 2003 figures include discontinued operations (MTU Aero Engines).
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