Mercedes 1998 Annual Report Download - page 23

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BUSINESS REVIEW
19
REVENUES ROSE BY 12% TO
€
131.8 BILLION. Despite the strained
situation of the world economy, DaimlerChrysler was able to
increase revenues by 12% to € 131.8 billion.
Revenue growth in the United States (+ 15% to € 65.3 billion)
and in the European Union outside Germany (+ 26% to € 20.3
billion) was especially strong. In Germany, our revenues rose
by 19% to € 24,9 billion. With a total of € 21.2 billion, our
business volume almost reached the level of 1997 in the other
markets, despite the unfavorable economic trends in Japan,
Russia and many newly industrializing countries.
Overall, 83% of our revenues were earned in the vehicles
business. The Services contributed 6% and the Aerospace
Division 7%.
STRONG GROWTH IN ALL DIVISIONS.
Almost all of our business
units contributed an increase of revenues with double-digit
rates of growth.
Revenues in the automotive business reached € 112.1 billion,
exceeding the 1997 level by 13%. Overall, DaimlerChrysler
sold more than 4.4 (1997: 4.0) million passenger cars and
commercial vehicles in 1998. This total included 3.1 (1997: 2.9)
million vehicles of the Chrysler, Plymouth, Jeep and Dodge
brands; 923,000 (1997: 715,000) passenger cars of the
Mercedes-Benz and smart brands; and 490,000 (1997: 417,000)
commercial vehicles of the Mercedes-Benz, Freightliner,
Sterling and Setra brands.
Sales of Mercedes-Benz passenger cars increased in all
important markets, with the exception of Asia. The new S-Class,
which was unveiled in October 1998, underscores our leading
position in the top segment of the market. With our new smart
city coupe, we are offering our customers not only an entirely
new automobile, but also a new concept of mobility. (Page 26)
Sales of Chrysler, Plymouth, Jeep and Dodge vehicles rose by
7% to 3,094,000 passenger and light-utility vehicles. We
continued to improve our position in the North American
market. Sport-utility vehicles, pickups and minivans continued
to be especially successful. Among the new product highlights
of 1998 were the Chrysler 300M, the Jeep Grand Cherokee
and the new compact Dodge and Plymouth Neon. The Chrysler
Financial Services Division, whose main priority is to
offer financial services to customers and dealers of the Chrysler,
Plymouth, Jeep and Dodge brands, also was able to further
expand its business. (Page 30)
The Commercial Vehicles Division, with its Mercedes-Benz,
Freightliner, Sterling and Setra brands, continued its profitable
growth in 1998. Revenues, sales and production reached all-
time highs. Business developed especially well in North
America where Sterling, a new truck brand, got off to an
excellent start. (Page 36)
The dynamic growth of DaimlerChrysler Services continued for
the ninth year in a row. The Financial Services,
IT Services and Telecom Services business units sharply
increased their business volumes. Overall revenues rose
by 21% to € 9.6 billion. (Page 42)
Revenues in the Aerospace Division increased by 12 % to € 8.8
billion and incoming orders also reached a record level with
€ 13.9 (1997: 9.9) billion. Above all, the Commercial Aircraft unit
contributed the bulk of the growth in this division, due to the
market success of the Airbus. (Page 44)
Adtranz with € 1.7 billion (+2%), Automotive Electronics with
€ 0.8 billion (+35%), and Diesel Engines with € 0.9 billion
(+ 5%), contributed to revenues of the other businesses in the
amount of € 3.4 billion. (Page 46)
25
50
75
100
989796
Consolidated Revenues
in Billions of €
125
Other Markets
U.S.A.
Europe
8,593
1,993
4,212
946
652
392
623
(146)
DaimlerChrysler
Passenger Cars
(Mercedes-Benz, smart)
Passenger Cars & Trucks
(Chrysler, Plymouth, Jeep®, Dodge)
Commercial Vehicles
(Mercedes-Benz, Freightliner,
Sterling, Setra)
Chrysler Financial Services
Services
Aerospace
Others
6,230
1,716
3,368
342
586
246
284
(225)
Operating Profit
in Millions
10,082
2,338
4,942
1,110
765
460
731
(171)
9798 97
€
98
€
98
US $